Portfolio Update Sep 2019

The broader markets have witnessed humongous damage to stock prices in India specially midcap and small cap stocks since past 1 year or so. The economic slowdown, crisis in PSU and NBFC space and series of corporate defaults and frauds has lead to loss of confidence in Indian Stock Markets which has resulted in heavy FII selling.

The crisis seems to be deepening further and Individuals seems to be coming under financial pressure from loss of jobs, poor confidence in Indian economy and fall in savings rate. According to me there is little that govt. can do to reverse this immediately and it appears that it will play out on its own. If things carry on like this for some more time, the SIP flows will take an impact which might lead to further selling pressure.

The India domestic story doesn't appear that rosy anymore and hence a major churn is done in the  portfolio. Please check the updated portfolio for further details.


Home Insurance – Basics You Must Know

Unlike car and life insurance, home insurance in India is a relatively new concept among majority of people in India especially Tier 2 and Tier 3 cities. But with majority of homes now being purchased on a mortgaged loan from banks, the buyers are increasingly being made aware about the benefits of taking house insurance and home appliance insurance (household articles) along with the loan. In some cases banks are refusing to offer loans without a home insurance policy to safeguard their interest in worst circumstances.

2 Ways You Can Ensure That Your Family's Financial Goals Are Fulfilled

A Goal Without A Plan Is Just A Wish”- Antoine de Saint-Exupéry

We set goals all the time. For instance: losing 10 kilos, eating healthy, running a marathon, writing a book and so forth. But financial goals, which are the most life-changing goals of all, are often put on the back burner.  




Accumulating funds for children’s education, building a multi million-dollar investment portfolio or starting a business can all seem a bit too hard. But it doesn’t have to be that way. With the right financial instruments, plans can be put into place, and everlasting happiness can be attained!

Market Share of Luxury Car Companies in India - 2018



  • Luxury Car segment performance stayed flat in 2018.
  • Mercedes retained the no.1 position with 38% market share.
  • Jaguar Land Rover the biggest gainer in terms of YoY Sales increase

Automotive Industry in India at a glance - 2018

Sales and growth numbers for cars, commercial vehicles, two / three wheeler and farm tractors in india*. 


* Extract from M&M Annual Report 2018

7 Important Things to Avoid Regarding Personal Loan

Personal Loans are a great a way to tide over your short term financial need as it requires relatively less documentation, quickly disbursed and doesn’t require any collateral. The interest rates these days offered by banks and financial institutions are also very competitive especially for borrowers with high credit score.  But there are certain vital things that one should keep in mind regarding personal loans:
  1. Avoid Applying for loans with too many banks: This is a very important point as not many people are aware of this fact. You need money urgently and you might be tempted to apply with multiple banks in case your desired bank doesn’t approve your application. With advent of online banking, it has become very easy to apply for personal loan online with several banks. This is a bad strategy in this case. Every time you apply for a loan with a bank or any financial institution, it will check your Credit Score on CIBIL. Now with each credit score check your overall credit score comes down a little bit. Now if some four - five banks check your Credit Score at the same time it’ll hamper your score in a meaningful way, which in turn will pose a problem in getting your loan sanctioned. Also lower credit score result in higher personal loan interest rates.  
  2. Avoid taking large loan amount: Just because personal loans are structured in such a way that you don’t have to discuss the reasons for taking one, it doesn’t mean you try to get as much as you can. Take only as much as you can afford to repay. Taking a loan amount more than you can afford to repay on time will put you in a debt trap. 

How to improve your credit score through simple snowball effect?

If you are reading this you are definitely looking for improving your CIBIL score (the most widely used credit score referred by lenders to hand out the loans) and this article will certainly help you in achieving this objective specially if you haven’t taken a loan before.

Since you don’t have a credit history the lending institutions will hesitate to approve your loan application especially medium to large ticket sized loans for items like Cars, Home etc. Let’s first understand the range of scores assigned by credit rating agencies and their grades:

Credit Score Ranges
Range
Grade
0 or -1
No Credit History
550 - 300
Bad
551-649
Poor
650-699
Fair
700-749
Good
750 and above
Excellent

If you fall into the first three categories of the above table, not only there is higher chance of application rejection but also the cost of loan is going to be higher, which is the interest rate you pay on the loan amount. The only way to improve your credit score is to make timely payment on your dues and in short term that can be done either by having a credit card and paying all its dues timely every month or you can improve yourCredit Score with Personal Loans.

Kya Lena Chahiye?

My reply to everyone asking me "Kya Lena Chahiye" after this brutal market fall.

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