Thursday, May 29, 2025

Asset class performances


 Above chart shows performance of different asset class from 1996 to 2025 till now.

Also last four line gives performance asset classes like PPF, FD, Gold, Silver and equity (sensex also nifty 500)

Where every year Rs 50000 invested in all asset classes given above.

Total invested value.                 Rs 15 lakh

Present value in each asset classes

Asset Class.                      P value.             CAGR

1.    PPF                         Rs     63.21 lakh.         8.2 %

2.    Fixed deposit        Rs.    54.5  lakh.         7.4 %

3.    Gold.                       Rs  135.7 lakhs         12.  %

4.    Silver.                     Rs.   93.2 lakhs         10.1 %

5.    Sensex ( Equity).  Rs. 191.2 lakhs.        13.7 %

6.    Nifty 500.               Rs. 233.2 lakhs.        14.7%

In direct equity we don't know stock selected by gives superior return or bad return.

So better to choose equity mutual funds to give superior returns. As fund manager experts in equity and  will handle our portfolio.

To start with equity, debt and gold mutual funds,  individually in equity select equity funds or combination with other asset classes select Hybrid funds.

To start with any mutual fund schemes sign up hear

https://slfinancialservices.wylth.com/

Have happy journey in investment 


Sunday, May 25, 2025

Psychology Plays a Vital Role in Markets!

 ** 

A beautiful e.g of Anchoring Bias shared 👇


A guy bought Tata Motors at ₹300. 


It touched ₹1170. 

He held on. 


Now it’s at ₹630. 

He is now unsure whether to hold, sell, or buy more.


No, this thread isn’t about Tata Motors.

This is about your mindset.


Because the biggest mistake wasn’t holding the stock.

It was anchoring his emotions to a number.


Let’s break it down:


In 1975, psychologists Tversky and Kahneman discovered:


Humans aren’t rational. 

They’re emotional.


The moment we see a price—any price—our brain treats it as a reference point for everything that follows.


So when Tata Motors hit ₹1170, his brain locked that in.

From that point on, anything lower feels like a “loss.”


Even ₹635, which is still 100% above his purchase price.

This is called: Anchoring Bias.


It makes you blind to present value.

And a prisoner of past numbers.


Now add another sneaky psychological trap: The Endowment Effect


He didn’t just “buy” Tata Motors.

He owned it.

He attached emotion to it.

He made it personal.


And the moment something becomes “yours,”

you overvalue it, irrationally.


So you hold on longer than you should.

Because selling it feels like giving up a piece of your identity.


Here’s the paradox:


When the stock is with you → ₹635 feels “too low” to sell


When you don’t own it → ₹635 feels “too high” to buy

Same price.


Different emotion.

Same irrational trap.


So what’s the solution?


I asked him:

“If he didn’t own Tata Motors, would he buy it today at ₹635?”


If the answer is YES — then hold.

If the answer is NO — then sell and redeploy that capital better.


That’s not emotion.

That’s logic.


The market doesn't care:


>How much did you buy a stock for

>How high it once went

>How long you held it


It only asks:

 “Is this the best place for your money RIGHT NOW?”


If not — move.

No guilt. No grief.


Because the truth is:


You’ll never sell at the top.

You’ll never buy at the bottom.


But if you master your mind,

You’ll always protect your capital.


That’s how wealth is built.

Not by holding tight, but by letting go — at the right time.


Anchoring Bias traps your decisions.

Endowment Effect clouds your judgment.

Emotional attachment kills your returns.

Escape all three.


By asking one honest question:

Would I buy this today?


Over 95% of investors underperform the index.


Not because of bad stocks.

But because of bad psychology.


Learn the Game.

Or be Played by it.

India New Boy in Defence Town !!

 

The global defense market is a massive $2.49 trillion industry, with India ranking fourth in defense spending with a budget of $74.5 billion. Despite global tensions, such as the Ukraine-Russia conflict and Israel-Hamas clashes, India's defense sector has been gaining attention. Operation Sindoor has been a game-changer, showcasing India's defense capabilities.


India's defense spending is substantial, with significant investments in fighter jets, including the $7.8 billion deal for 36 Rafale jets and potential procurement of 26 Rafale M jets for its INS Vikrant aircraft carrier. The country has also invested $5.4 billion in 5 S-400 Triumf air defense systems, Akula-II Nuclear Attack Submarine, Apache and Chinook Helicopters, and more.


India aims to boost its defense exports to $6.7 billion by 2025 and become one of the top 5 defense exporters globally, up from its current 25th position. The US dominates the global arms market with 43% share, followed by France, Russia, China, and Germany.


India's defense exports have grown exponentially, with a CAGR of over 30% in the last decade. Key export products include:


- BrahMos Supersonic Cruise Missile

- Tejas Light Combat Aircraft (LCA)

- Dhanush Artillery Gun

- Akash Surface-to-Air Missile System

- Pinaka Multi-Barrel Rocket Launcher (MBRL)

- Electronic Warfare Systems


These products are being exported to countries like Mauritius, Vietnam, Sri Lanka, UAE, Israel, Saudi Arabia, Brazil, Argentina, Qatar, Oman, Philippines, and Singapore.


The Philippines has signed a deal for BrahMos missiles, while the UAE has signed an MOU. India has also exported drones to Saudi Arabia, Mauritius, and Maldives.


To achieve its ambitious defense export targets, India is focusing on:


- Make in India: Encouraging indigenous defense manufacturing

- Defence Acquisition Procedure (DAP): Streamlining procurement processes

- Innovation and Indigenisation Fund: Supporting research and development

- Defence Export Strategy: Identifying markets and products for export


With these initiatives, India is poised to become a significant player in the global defense industry.

#Defence #indiashining

Tuesday, May 20, 2025

Pension with SWP


 💰 Need a steady income stream during retirement? A Systematic Withdrawal Plan (#SWP) is ur answer!

✅. Invest Lump sum amount in any Hybrid or equity fund ( e g. Rs 2500000)

✅ Set a withdrawal amount (e.g., ₹20,000/month)

✅ Choose ur frequency (e.g., monthly)

✅ Decide on the duration (e.g., 5......20  years)

Enjoy a predictable income & manage market risks

Wednesday, May 14, 2025

Credit Cards – Smart Use, Potential Pitfalls


 Credit Cards – Smart Use, Potential Pitfalls


Credit cards can be risky if mismanaged. Overspending leads to debt, but careful use offers benefits:


1. Cashback and Rewards

Earn points or cashback for spending, redeemable for flights, hotels, or vouchers. Those rewards might tempt unnecessary spending.


2. Extra Perks

Enjoy free lounge access, travel insurance, and concierge services, but some perks are rarely needed or lead to more spending. 


3. Builds Credit Score

Timely payments and low usage improve your credit score, but missing payments can severely damage it, making future loans tougher.


Bottom Line:

Overspending and late payments increase interest and hurt your credit score. Approach credit card use cautiously to avoid long-term financial issues.

Monday, May 12, 2025

Active versus passive funds, Which is better

 


To start investing in mutual funds, or already invested. Want see all your investment under one app. Then click on below link and sign up.

https://slfinancialservices.wylth.com/

Friday, May 9, 2025

Sold property but not reinvested the capital gains yet?

 

💡 Sold property but not reinvested the capital gains yet?


Don't lose your tax exemption!

Use the Capital Gains Account Scheme (CGAS) to safely park your long-term capital gains until you're ready to reinvest (under Sec 54, 54F, etc.).


Two types of accounts:

Type A – Savings (like regular SB a/c)

Type B – Term deposit (higher interest, fixed period)


Lock-in: Based on the exemption section – usually 2 to 3 years

Interest: ~4% for Type A, higher for Type B (varies by bank)

Deposit before filing ITR to retain your capital gains exemption.


https://slfinancialservices.wylth.com/