This category contains articles explaining concepts in economics and finance. It also contains articles explaining the broad economic trends and their implications for selling life insurance
If you thought that investing in mutual funds is risky only because they invest your money in risky investments, think again. There are risks involved with the manner in which the NAV is calculated and in the way in which the mutual fund organises its work. The risk that arises because of the way in… Continue reading Investment Risk Has Many Colours
When one does a course in Marketing Management at a management institute, one of the things students are thought is product positioning. Product positioning is knowing where your category of product stands amongst all other competing products. It also gives an idea of the market segment where one should market one’s products and the strengths… Continue reading Explained: The Market for Traditional Endowment and ULIPs
A very important aspect of the investor’s psychology is the concept of risk aversion. That is the desire to avoid or minimize risk in investments. Not all individuals will be prepared to take the same degree of overall risk of all their investments put together. All investors do not carry the same degree of risk… Continue reading Explained: The Concept of Risk Aversion
Explained Finance and Economics Education for the Life Insurance Sales and Marketing Persons Knowledge is Power Learn Concepts that Are Today’s Market Language People Fear Risks More than they Want High Returns, This is a fundamental truth of investment behavior. Let us understand this concept. Risk categories of investors and investment options Investors can be… Continue reading People Fear Risks More than they Want High Returns
The calendar year 2018 was particularly bad for equity markets. While various analysts are giving different figures of the gains or losses in the equity markets, the main point is that those who invested either directly in shares or through equity mutual funds lost money. Morningstar reports (https://www.morningstar.in/posts/50281/mutual-funds.aspx Date 2 Jan 2018) the following gains/losses… Continue reading The Cat is Out of the Bag
Standard & Poor (standardandpoors.com) publishes on the website https://us.spindices.com/spiva/#/reports the performance of mutual funds in comparison with the S & P Index. This is called Spiva (Standard and Poor Index vs. Active Funds). They do this for many countries around the world. For India, as on 30 June 2018, this what their analysis says: Large Cap… Continue reading Data From S & P: Under-performing Mutual Funds
Lets Accept it. We are not God Predicting future returns of a risky investment. All of us want to do it. Many of us believe we can do it. But the truth is that none of us can predict future returns on a risky investment. In all humility Lets accept it, we are not God. If… Continue reading God! Please teach us to know the future
Finance and Economics Education for the Life Insurance Sales and Marketing Persons Knowledge is Power Learn Concepts that Are Today’s Market Language This is the fourth article of the Explained Series of Articles from me. In this series I will be explaining a few concepts in financial theory and how they are linked to selling… Continue reading Mutual Funds Are Not For Long Term
Finance and Economics Education for the Life Insurance Sales and Marketing Persons Knowledge is Power Learn Concepts that Are Today’s Market Language This is the third article of the Explained Series of Articles from me. In this series I will be explaining a few concepts in financial theory and how they are linked to selling… Continue reading Hair Cut by Banks May Result in Baldness of the Mutual Fund Investor
This article is a case study of how the degree of risk in an investment can suddenly change. An investment that is considered safe can almost overnight become a dead investment and investors lose in the resulting volatility of price fluctuations. The financial sector knows how to hide truth Whatever else one may say of… Continue reading Explained: Side Pocketing – An Example of How Investment Risk Actually Works in Practice
