Stocks Gurukul

How to build your portfolio? Disclaimer: This article is purely for educational purposes and in no way be considered a recommendation in any form.   While you have insured yourself against any unforeseen circumstances, and have inculcated the habit of saving money every month by avoiding discretionary expenses and learned compounding, you are now ready to build your portfolio. In case you have not gone through the previous articles, I will request you to go through them before reading the current one. ( https://stocksgurukul.blogspot.com ) A portfolio is nothing but, a group of financial assets. If you take my example, I am holding my funds in Bonds, Debentures, Equities, Gold, etc. So, the question here is why am I diversifying and putting my money in different assets? The simple answer is to diversify the risk.  Take an example of Stock Market Crash in 2008 (although it recovered later), if someone would have invested 100% of their money in equities, th...

Uninsured and Breadwinner? Don’t live with a time bomb on your head. In the previous article, we understood the power of compounding and the power of money and how to inculcate a habit of saving money. If you have not gone through that article, here is the link I hope you got yourself acquainted with the necessity of saving and investing to achieve financial independence. However merely knowing about the destination is not enough for you to sail your boat directly into the ocean. For it, you need safety equipment, the knowledge of wind direction and much more. Similarly, before investing your hard-earned money into a return generating asset, you need to understand the hurdles you might face during the journey. I assume all of you have a general idea of what insurance is and why is it necessary. I will take the liberty to skip the explanation and will directly come to a case study . Mr. X is working in an MNC and lives with his spouse and two daughters, six and nine ...