[arun agarwal]

Originally Posted by fire_kris

well i am sure i can lend in a different perspective... i come from a business family... so i have to start from a huge pay packet as i have got peer pressure as well... most of my bro's are from IIMs (4 of them ) and one from XL.... so the whole point is that i have to be really damn good at what i do..

Now money for me nowadays is the most important thing that matters in life ... after dhokebaazi from two gals ( ya... learnt it the hard way )....

i think what i have learnt from my elders is a simple funda about life.... to be succesful is not about how much you earn but about what percentage of your earning u can save...

i person earning rupee 10,000 and saving 3,000 is a better money manager than person 20,000 saving 4,000.. also the important factor is if the person enjoying his life... u cant go save save save and live like a pauper... u are in this world to enjoy life as well

Dear Fire_kris,

Nicely put. It is like any other business enterprise. Top line (Salary) may satisfy your ego but ultimately it is Bottom line (Savings) which matter and determine your share price (happiness Index).

Arun

[reachmonil]

Just read a good article on www (dot) valuesearchonline (dot) com, which I thought is worth sharing!

Query: I have a question with respect to growth v/s dividend reinvestment option. While I was deciding on which option to choose, my broker suggested that I go for dividend reinvestment. He said it is better to have more units rather than higher NAVs of a growth option. Technically, I see no difference as the value of underlying investments in stocks remains the same. However, I was just wondering whether lower NAVs are better from a behavioural point of view i.e. are retail investors deterred from investing in a fund which already has a high NAV? More generally, should the magnitude of NAV of a fund matter when I choose which fund to invest in?
-Vivek Jayaraman.



Reply: You are absolutely correct. The NAV is immaterial while choosing a fund. Moreover, there is no difference between the growth and dividend reinvestment options in terms of total returns. One must remember that NAV is different from the price of a stock. A stock's price, unlike NAV, is influenced by the forces of demand and supply, external factors such as perception and investor sentiment.

The reason you should buy into a particular scheme is due to its performance potential and not its unit cost. Say you purchase one fund with a high NAV and another with a lower NAV, but more units. Assume both perform similarly, upon selling the two funds, the return on investment will be similar. Hence whether the NAV is high or low, or whether you get more units or less units, is irrelevant. What matters is the investment style of the scheme and the returns it generates.

[mailtojsb]

Originally Posted by writetotanveer

Am not sure if it is completely relevant.... but posting an expense organizer in Excel that helps us calculate savings at our disposal..

Regards
Tanveer

Dude, your expense organizer is ultimate. It will be great help if you can provide a password as well to un-protect it, so that we can amend it further to our needs. Thanks for sharing this. Cheers!

Thanks
Jeetu

[willsurelywin]

uppydog:wow
juist what i wanted to say
young pro need to manage their money and dont waste moey in showoff or u will face lots od debts and sleepless nights .
debt is a vicious cycle try to aviod it as much as possible

[Digital_Saint]

Originally Posted by DreamRun

@reachmonil :
u shud have invested in only abt 2 MFs 'cos most of the MFs have an entry load....they charge u a fee of 2-2.5% of the money u invest..

As far as I know there is no entry load if you buy directly from the Asset Management Company. [At least I never paid any Entry Load as I always bought directly from the AMC and not from brokers/other channels] For all the people living in metros or other big cities, I would recommend saving at least this 2-2.25% of your capital that you would otherwise spend as Entry Load if the company did not sell directly in your city.

And, one of the worst things to do when investing in mutual funds is comparing past performance or the star-ratings as shown on websites.

PS: I know it is an old thread, but a good one to bump into.

[xcoolaryan]

Just trying to revive a old but very useful and imp thread. Hope others will soon follow.

I recently read book Stocks To Riches: Insights On Investor Behavior


I found this book quite interesting and it explain in detail how our mental accounting affects our money decision.

I believe this might help all of us in making right decision and have a happy & secure life.

[Arastoic]

Thanks for reviving the thread xcoolaryan. Very informative thread.

I have worked for two years before starting MBA and unfortunately I can't say that I managed money well in that period

I am re-uploading 'expense manager' sheet shared by tanveer few pages back.