Wanderlust Sajid

RBI recently decided to cut the Repo Rate by 75 bps from 5.15% to 4.40%. It is aimed at bringing down the cost of borrowing and and revive the economic growth, mainly in response to the financial impact of Covid-19 . Interest rate on the loans by banks, naturally started lowering due to this. However, banks were also be compelled to pay a lesser interest on FDs. SBI reduced its 1 Year FD to just 5.70% interest. The government has also declared lowering of interest rates on small savings schemes. PPF now is at 7.10% interest for April-June 2020 (reduced by 0.80%). You as an investor might be worried to see the lowering of interest rate on FDs, at the time when your equity investments have also gone down currently.  However, you have to think intelligently in this scenario. One of the basic fundamentals of personal investing is to make a proper Asset Allocation. Asset as an investment can be Equity, Fixed Income or Gold. Your entire investment should not be on any single as...

8 frequently asked questions during covid-19 Why are markets declining? How long it will decline? What would happen to my invested money? You might be going through such questions in your mind due to the ongoing turmoil in the market. To see hard earned money losing its capital value, is very painful for everyone. It is a concern for both you and me as a Financial Advisor. However, in my 25 years of experience in the industry, I have seen more than a couple of such acute market turmoil. Nevertheless, in all such times I have seen that the market recovered more than it had fell, within 12 months span. Here, I try to answer 8 questions, which I guess might be going through your mind, currently. Why is my portfolio in red despite investing for the last 3 to 5 years? Your investment is safe and you are facing just a notional loss. Have your confidence, by seeing how our market has reacted to such events in the past. Indian economy depends largely on domestic production. T...