Register for Mega Jagoinvestor Workshop in Mumbai – 7th Aug (Sunday)

Hello Mumbai Investors,

You have experienced your first rain and the weather is beautiful out there. It’s time to go on a date with YOUR financial life and to do so; we have an opportunity wrapped in this article for you.

Mark and block 7th of August (Sunday) on your calendar, our entire team will remain present in Mumbai to lead/organize an extraordinary one day workshop on personal finance. This time we are playing for a bigger event and for that we will need your support and full participation. (Watch Pune workshop Video & Testimonials from Participants)

If you are from Mumbai, Navi Mumbai, Thane, or other nearby areas (even Pune), then book your seat and then share quickly about this event with your loved ones.

Our PROMISE – It is going to be a GAME CHANGER

The workshop will be a game changer for YOU because it will add a lot of value to your financial life. So far we have seen and observed that our workshop helps investors to add new and different dimensions to their financial world.

In the whole process you learn to slow down so that you can examine what’s going on in your INNER financial world. With our help and support, YOU will also define and adopt a new set of actions and strategies to create an amazing financial life.

Why we conduct workshops?

We do offline workshops so that we can connect with some of our readers at a deeper level, round the year we write articles, reply to thousands of comments and work with a few hundred investors one-on-one and in that process we learn, grow and expand as professionals.

Our Workshop gives us an opportunity to share outrageously all the knowledge and experiences that we acquire round the year. The program is an opportunity to get our readers more and more action-oriented.

Why you should come for this workshop?

  • You will learn how to improve your financial life with your current set of resources and income.
  • You will learn how to plan for your financial life goals
  • You will interact and learn from other’s people’s financial life
  • You will dedicate one full day to get better with money management
  • You will learn to add new dimensions to your financial life
  • To understand that personal finance can also be fun
  • To give a whole new direction to your financial life

It’s time at add jagoinvestor workshop to your financial journey:

It has been a few years now conducting “Design your financial life” workshop and the experience has been amazing. It is a wonderful space to be in, in which the group learns and starts to fall in love with the process of wealth creation.

We do not teach tricks and tips to build wealth in fact we help you to discover your own personal process of creating wealth.

This time we want more couples to participate so that they can get on same page when it comes to personal finance. It is extremely important that husband and wife both take equal interest when it comes to money management.

We are offering special discounts to those who want to come with their partner. (You can even come with your parents, siblings or friends and can claim the discount)

The workshop we conduct is highly interactive, it has lots of activities and fun exercises that help you to discover your relationship with money. The sessions are interactive and very easy to grasp for any kind of, beginner or advanced investor. In short, there is something for everyone in this workshop.

What will you get as a participant?

  • You get a FREE Financial Health check-up Report worth Rs 499 on sign-up
  • One day workshop with some personal finance tools like a budget sheet, Mutual fund tracker, etc
  • Invitation to join our inner circle

Register for Mumbai workshop on 7th Aug, 2016 (SUNDAY)

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  • Valid for 1 person
  • Ideal for Bachelors

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  • Valid for 2 People
  • Ideal for Couples, Siblings, Friends



Other Details

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Program Name – Design Your Financial Life (Check Program Flow)

Program Presenters – Manish Chauhan & Nandish Desai

Timings & Date – 8:30 am – 6:00 pm, 7th Aug, 2016

Venue – Motilal Oswal Tower, Gokhale Road North, Prabhadevi, Mumbai – 400025 (Maps)

Contact Person – Abhi Kumar (09979922535)

Important Information

  • The venue is 2 km from Dadar/Lower Parel Station
  • Lunch and Tea/Coffee is included in the program fees
  • Please don’t bring kids to the program
  • We reserve the right to admission in this program
  • This program is not for financial advisors/agents/CFP


Invitation to join and participate

From the bottom of our heart, we invite you to join and participate in our Mumbai workshop. Come alone or with your spouse or parents, siblings or friends but see that you do not miss this opportunity. Do not let time and money to get in your way and book your seat at the earliest because we will be taking 70 participants this time and registration will close after some days.

This workshop is strictly for investors and not for advisors or finance professionals. This workshop is strictly for investors and not for advisors or finance professionals. In case we find some financial advisor/planner or anyone from personal finance background registering for the program, we will refund the fees. We hold the right to admission to this program

If you have never participated in any personal finance workshop let this be your first workshop. If you have any questions you can write in the comments section.

You can also visit our Workshop Page to Register and Get more details.

We would like to extend special thanks for Motilal Oswal Mutual Funds for allowing us to use their venue for this workshop and helping with the logistics.

5 Asset Classes Explained – A simple guide for beginner Investors

Today I am going to teach you about “asset classes”, which is the most primary lesson every investor should go through. Understanding asset classes is very important for an investor because when you invest your money in any financial product, then in the background, it goes to a certain asset class only.

The world of personal finance has hundreds of financial products, which makes everything confusing for an investor, but if you understand which asset class it belongs to, then this whole world of personal finance will sound easy to you.

various types of asset classes

So if you are confused about whether to invest your money in a fixed deposit or a mutual fund? Or into gold ETF’s or PPF? How do you decide?

Just ask – “Which asset class does it belong to?”

Is a fixed deposit in the bank better or a PPF would be the right thing for you, this all questions might seem to be confusing to you if you do not understand which asset class they come from? So in this article, we will go deeper into the basics of investing and help you to get stronger into the primary level information.

What is the meaning of Asset Classes?

Asset classes can be seen as a big basket where all the financial products belonging to that asset class share common characteristics. Things like risk, returns, liquidity, and various other parameters are similar.

For example, a Fixed Deposit and PPF are different financial instruments, but at the deeper level they both are secure products, you do not lose money in these products, their returns are also predefined and there is predictability in their returns.

Can you see that both FD’s and PPF share some common characteristics? It’s because they both belong to the asset class “Fixed Income”.

Here is a video which gives an introduction to asset classes

In the same way, an equity mutual fund or direct stocks, both are different financial instruments from high level, but inside they both are high volatility instruments and have potential to multiply your investment amount many times in short period of time, this is because they both belong to same asset class called “Equity”.

Below is a snapshot from the Karvy website which shows you the wealth distribution of Indian investors in the year 2015.

asset class ownership in India

There are 5 asset classes

While there is no standard list or category of asset classes, widely it’s accepted that there are 5 types of asset classes namely

  • Fixed Income
  • Equity
  • Real Estate
  • Commodities
  • Cash

Every financial product you come across will fall into any of these 5 asset classes only. Each of these asset classes has their own set of behavior and they represent something unique about them. The chart below shows you financial products belonging to these asset classes and what these asset classes denote

types of asset classes

Asset Class #1 – FIXED INCOME

Let’s start with the most famous and favorite asset class in India, which is “Fixed Income”. Fixed Income asset class refers to the class of financial products where your investment amount is more or less protected and the returns are either fixed or predictable to a great extent. There is almost no/less risk in these products which are from the fixed income asset class.

Investing in fixed income asset class is like lending your money to someone with the assurance of return with predefined returns. So when you make a fixed deposit in a bank, you are not exactly “investing”, but lending your money to the bank with a promise that they will return back your principle amount along with a pre-defined interest.

Fixed Deposits do not beat inflation

Even if you are getting an 8-9% return on your fixed deposits, many people do not realize that it’s the pre-tax return. As Fixed deposits are taxable (and every other debt instrument), once you pay the tax on the returns, the post-tax returns are only in the range of 6-7% and if you adjust the inflation of 8-10%, you are actually getting a negative return on your fixed-income investments.

Livemint has done a story on this topic in a detailed manner which you should read.

post tax returns from fixed deposits in India

Risk is less in Fixed Income Asset class

All those who want to get a fixed return and do not want to take any risk should choose this asset class. It’s a human nature to seek assurity, and given that fact, fixed income instruments are a big hit. No wonder Fixed Deposits rule the world of investments, It’s simple and easy to understand the financial product.

Same goes for PPF, NSC, recurring Deposits and various govt bonds or debt mutual funds. However note that this asset class does not beat inflation or nearly matches it, hence over the long term, while the amount of your investment will become bigger in number, the purchasing power will remain stagnant or might drop. So this asset class is to only protect your money, not grow it.

Asset Class #2 – Equity

The equity asset class is an interesting asset class and slowly getting more and more acceptance from the last 1-2 decades.

Equity means ownership

So when you invest in equity, it means that you have bought ownership into a business. For example, when you buy stocks of Infosys or Reliance, you become a small owner of that business.

Even the RSU and ESPP which you get from your company makes you a small investor in the company and that’s “equity investment”

Now obviously when you invest in the business, you get a % ownership. And if that company becomes big someday in the future, your overall worth also goes up. But there is a problem, the business grows only over time and in between, there are ups and downs and that reflects in the stock price of the business/company.

If you look at all the rich people today (really filthy rich), it all happened with equity investors. Someone either opened their own company or invested in some company which was growing and held it over the long term.

Equity Investing works in the long run

Below is the 10 yrs return chart for various years for Sensex. You can see that most of the time sensex has given more than 12% return (much more than that actually) every 4/5 times. This is since the time Sensex has been into existence.

Because the equity returns are very volatile, most of the people refrain from mutual funds investment or investing in direct stocks, but they are the real wealth builders for any investors. There are mutual funds from various Asset management companies that have a proven track record for building wealth for its investors.

Asset Class #3 – Real Estate

Real estate, as we all know refers to physical space, or physical structure like land, residential flats, commercial spaces, etc. These spaces are either used for living purpose or for doing the business and generate income. Should one invest in real estate or not is a topic of debate and I am not getting into that right now.

Over the last 2 decades, the real estate asset class has got tremendous interest from investors. Everyone wants to now own a home and real estate is very sought after asset class. As the country develops and expands, we see many upcoming areas in all cities and a location which was considered outskirt of the city becomes a very important location in the city and we see some amazing returns.

However, the fact is that we always hear the “good” stories and never the bad stories where one got bad returns from real estate or lost their money.

Returns from Real Estate

The real estate market has cycles of ups and downs and returns from real estate can be very volatile and can depend on various factors like city future, govt policies, political situations and many more. For example, if you look at Hyderabad, the returns in real estate have not moved anywhere in the last 7-8 years and we are talking about average returns here. has done a study based on NHB Residex to compute the real estate returns in various Indian cities from 2007-2014 and below were the results.

real estate returns in Indian cities

I am in on way saying if real estate is good or bad. All I am trying to do is make you aware of the characteristics of real estate as an asset class. You need a high ticket size for investment, the market is not regulated at all (only recently the regulation has been made) and it’s more or less one side market with a lot of opaqueness.

Asset Class #4 – Commodities

Commodities refer to various types of physical goods or products which we all can buy and sell for various uses. Gold, Silver, Copper, Rice, and Oil etc will be counted under this asset class. The price of these products depend on demand and supply in the market.

commodity meaning

Commodities are for “Trading” and not investing

With my limited understanding, I came to the conclusion that commodities are not for investing for the long term, but mainly for trading, where you can benefit from the market cycles and predict demand and supply moves and get a profit or loss.

Returns from the commodities can be very volatile and each commodity has its own market and dynamics.

Only a handful of commodities like Gold or Silver can be invested in for a very long time because they can be stored without losing their usage. A common man can’t store other commodities in the same way, hence trading them for short term is a feasible option.

Asset Class #5 – Cash

When I say “cash”, I don’t just mean the hard cash bundles, but also the money lying in your saving bank account, or liquid mutual funds. I will refer all of these things as “Cash”.

The best thing about cash is that it gives you the freedom to “buy” anything you want instantly. You can buy a car, a house or a phone or invest your money in other asset classes.

The freedom you get with cash is very high and that’s one reason why most of the people prefer to hold a lot of cash. Also the cash cannot be tracked (unless it’s several multi-crore rupees) and many people keep their black money in form of cash.

Cash as an asset class

(Image Source)

It’s not uncommon to see many lakhs lying in a savings bank account just because the investor thinks “What if something goes wrong?”

However cash has one problem, it does not fight inflation at all or very little. The money lying in saving bank account just earns 4% and that does not help you as an investor.

Which asset class you should invest into?

Where should you invest your money? This question can only be answered if you are clear about your requirements like how much risk can you take and how much return do you expect out of your investment?

Are you ok with locking your money for several years or not? I have made a simple table that compares all asset classes on various parameters.

asset class-] comparison

I hope this article gave you a high-level understanding of all asset classes and cleared your basics. Please share which is your favorite asset class and why?

Applying for home loan? Here are 4 highly critical checklist you should follow

Are you going to apply for a home loan in the near future? If Yes, then this article is written exactly for you, because I am going to share with you a checklist which you should follow to make sure that your loan application process is smooth and also to increase the chances of your loan application getting approved.

We all take various kind of loans these days, be it home loan, car loan, personal loans or even credit cards. I will show you some very important checklists which if you follow; you will save yourself from various issues faced by other loan seekers.

Note that while this article is primarily written with a home loan in mind, but the checklists discussed will also apply for any kind of loan.

Checklist one should follow before applying for home loan in India

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Checklist #1 – Check your CIBIL report/Score in advance

Don’t underestimate the role of credit reports/score in loan approval process these days. The first thing the lender looks at is your credit score/report when you apply for any kind of loan (even credit card).

The moment you enquire for a loan with a lender, they check your report from CIBIL or any other credit bureau like Equifax or Experian and based on the remarks on your report and your score, they either reject your loan application or forward your case for further checks.

There are many real-life cases, where a person applied for a loan and found out that it got rejected because of this credit report is messed up. It might be due to a credit card settlement he did a few years back or because he was not able to make timely payments on his past loans.

Imagine a person who has already paid the booking amount for a car or a house and then he is stuck because he/she can’t get the loan approved. That’s not a situation; you would like to get into!

personal loan rejected because of CIBIL

CIBIL score of 750+ is a good score

How much CIBIL score can be considered good enough to get any kind of loan? Well, there is no guarantee that you will get a loan just because your credit report is high, but as per CIBIL, out of every 100 people who got a loan approved, 79 people had a score of more than 750.

This means that if your score if more than 750 out of 900, there is a good chance that your loan will be approved, provided there are no bad remarks on your report and other things like income proofs are in place.

cibil score required for home loan approval

Apply for your CIBIL report in advance

So when should you apply for a CIBIL report?

I think it should do it much before you apply for a loan. I suggest at least 6 months in advance because if there is some issue in the report, you get enough time to rectify that mistake.

There are many cases, where a person applied for a home loan after paying the down payment money, and their home loan is not approved because of CIBIL related issues. Now they are stuck as they are not getting back their down payment money back and their application is also not getting approved.

They run around to fix their issues or try to improve their CIBIL score, but now it’s very late because it takes many months to follow up with CIBIL or Banks involved. Last-minute fixes do not work, that’s the reason this check needs to be done well in advance.

Checklist #2 – Make a simple Cash flow statement

If you are applying for a big loan like a home loan or a car loan, then it’s very important to understand where you stand financially. You should have a very clear idea about the maximum down payment you will be able to make (and you should also try for that) and what is the realistic EMI you can pay each month.

As our wealth is scattered across various financial products like saving bank account, fixed deposits, mutual funds etc, it’s important to note it down in an excel sheet to get better clarity.

You should also list down the income and expenses details so that you can get an idea about how much you save each month. Your surplus each month is a very important criterion used in calculating your loan eligibility by the lender.

Below is a sample working of cash flow in an excel sheet, which gives the good enough indication of the down payment amount and the potential EMI a person can afford.

sample cash flow calculation before applying for a loan

Download this Excel Sheet and Calculate your numbers

It should not happen that you applied for a loan much beyond your capacity and then at the last minute, you are wondering where you will arrange for extra money. It can be a very frustrating situation, where you are stuck in a deal and you are not able to figure out how to arrange for the money.

Checklist #3 – Increase your home loan eligibility

When most of the buy a house, they wonder how big a house they will be able to afford? Just because they have a high salary, they think that they will get a big loan, which most of the time is true, if you don’t have any existing loans.

But then a lot of people have several small loans running like a personal loan or a bike loan or any other consumer loans, and these small loans come in the way of your loan eligibility because they show up in your “pending loans” or “Existing EMI” list.

So one the actions you should take is to close off any small loans you have because they will increase your “surplus” as the EMI will get stopped, and also you will have one less commitment to take care of and lender likes that.

Below are some handy tips if you want to increase your home loan eligibility.

Let’s see an Example

Suppose, your per month income is Rs 1 lacs and you have a bike loan (or personal loan) currently running with Rs 8,000 EMI per month with 10 more installments to go. Now with this profile you are eligible for Rs 43 lacs of home loan.

How can you increase your home loan eligibility in this case? You can prepay your entire bike loan as it’s a small loan if you look at the outstanding amount; you can dig into your other savings and pay it off. This will surely reduce your savings a bit, but increase your loan eligibility by another 8-9 lacs because now you have another Rs 8,000 surplus each month.

See the home loan calculator snapshot below which shows you this.

Home loan eligibility calculator example

Even your CIBIL report will also show that you have successfully completed and paid off a loan provided you do this a few months in advance before you apply for a home loan.

Close you credit card outstanding also

You should also consider to pay off your entire credit card outstanding bills. May people keep rolling their credit card debt by paying the minimum dues, but that’s not a good thing if you want to get some loan in coming future.

If you are looking for a home loan, then go to this home loan eligibility calculator, enter your details and our trusted partner will help you in securing the best home loan. You also transfer your home loan by applying here

Also, decide if you want to apply for a joint home loan

One way of increasing your home loan eligibility is to add your spouse or any other earning member from your family as a co-borrower of the property. This is one factor you should consider if the spouse is already an earning member. Even if it’s not a significant amount, still mentioning that they bring in some small income helps your loan application, as it adds to the “stability” factor.

Checklist #4 – Arrange all documents required for a home loan

Some background preparations on the documentation front can help you save last-minute hassles and running around. I have often seen many people running around, for ITR proofs and other documents because they didn’t plan well in advance. Below are various documents that might be required for your home loan documentation purpose.

It’s a good idea to prepare a file and arrange all these documents well in advance. These documents are keeping in mind a salaried resident Indian.

KYC related Documents

  • 2-3 Passport Size photos of applicant and co-applicant
  • Identity proof like PAN or Voter ID card, Passport, Aadhar card
  • Address proof like Electricity bill, Telephone bill, Employer Certificate, Aadhaar Card

Income & Employment-Related Documents

  • Past 3 months salary slips
  • 3 yrs ITR (Income tax Returns)
  • Latest 6 months bank statement attested by the bank in original
  • Latest Form 16 for 2/3 yrs
  • Proofs of all savings like FD’s, mutual funds, gold etc (for a down payment)
  • All ongoing loan account statement for past 6-12 months
  • Relieving/Experience letter of the previous company if current employment is less than 2 yrs old

Property Related Documents

  • Original copy for Sale Deed or Agreement to Sale
  • 7/12 extract
  • Commencement Certificate
  • NA certificate
  • Search and Title Report
  • Building Completion Certificate (if available)
  • Latest Tax receipts
  • Development Agreement

Below is a video from IREF, where a guy (seems to be from a bank) is explaining the home loan process and overall documentation requirement. It’s a 7-8 min video in Hindi, kindly view the full video to understand why some document is needed.

Extra documents for self-employed and business professionals

In case you are not a salaried person, then some documents will be different in that case, which is as follows

  • 3 yrs ITR, along with profit and loss statements certified by a CA
  • Your bank account statement for last 1 yr
  • Shop Act License
  • Partnership deed or Company related documents
  • Brief write-up about your business and the nature of work/revenue

This common floor article mentions even detailed list of documents

Some Important points to remember before applying for a home loan

  • In case you are planning to quit your job or planning to change the job, it’s better to first apply for a home loan and then quit/change, otherwise, it will get very tough to get a home loan later.
  • If you are sure of getting an increment very soon or your pay rise is on the cards, then wait a bit and apply for the home loan later as it will increase your home loan eligibility

I hope this article gives a clear direction and action checklist to someone who is looking forward to a home loan or any other loan. Please share any other critical checklist which I have missed out. Also, I request other members to share their experience when they applied for a home loan.