What makes SIPs risky? 🧮

A Thread! 🧵 ⤵
1️⃣Stock Market or Equity Risk

The money you put into an equity investment is eventually invested in the equities.

As a result, equity SIP investment plan mutual funds, or any fund having a portion of its assets invested in stocks, are exposed to the hazards of stock markets.
2️⃣Credit Hazard

All SWP and SIP Mutual Funds investors are exposed to this risk.

#mutualfunds #nifty50 #paytm
3️⃣Risk of Interest Rates

A risk linked with debt funds is interest rate risk.
4️⃣Risk of Inflation

Inflation is defined as an increase in the overall quantity of pricing for the products and services we use. It reduces the budget's buying power.
Find out more about risks involved in Mutual Funds on:

blog.finology.in/mutual-fund/ar…

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More from @myfinology

Jun 28
All you need to know about National Savings Certificate (NSC)

- Eligibility Criteria
- Min Max Deposit
- Interest Rate
- Tax Benefits
- Maturity Period
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A 🧵
National Savings Certificate (NSC) is a government-backed investment scheme launched on 8th May 1989 that combines guaranteed returns with tax savings.

#Investment #personalfinance
It's a kind of fixed investment scheme that can be opened in any post office branch. As this instrument is backed by GOI, there is no risk of default.

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How many stocks should you have in your portfolio? 🤔

Here's a 🧵 on Ideal Portfolio Mix ⤵️

#StockMarket #Investment
An investor majorly faces two types of risk: market risk and company specific risk.

Market risk is certainly inevitable but non-market risk i.e. the uncertainty of a specific area of the market or specific stock can be managed through proper diversification.

#nifty50 #NASDAQ
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How much diversification is enough?

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• Min Max Deposit
• Interest Rate
• Tax Benefits
• Eligibility Criteria
• Maturity Period
• Payment Period
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• Loan Facility

-- A Thread 🧵 --
▣ SSY was created to provide girl child 👨‍👩‍👧‍👧 with a
sound financial future. It’s a part of "Beti Bachao,
Beti Padhao Yojana". It comes with an interest rate
of 7.6% and tax benefits under 80C of Income-tax
Act, 1961.

#investingtips #personalfinance
▣ The account can be opened by the parent or legal guardian in the name of a girl child from the birth till she is 10 and max 2 accounts can be opened.

❌If more than two daughters the 3rd account can not be opened.

#investors
Read 14 tweets
Jun 6
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◉ 1 in 10 Indians will develop cancer during their lifetime & 1 in 15 will die of the disease.

◉ India had an estimated 11.6 lakh new cancer cases and around 7.84 lakh cancer deaths in 2018.
What about the treatment?

◆ India has only 0.98 oncologists per 10 lakhs population and just 62 dedicated cancer care hospitals in the country 😲

◆ That's not it, 30-50% cases are not reported in India!

#cancer
Given India’s large population density and geography, the limited number of specialists limits treatment of cancer, especially in rural areas.

The highly inadequate infrastructure is the reason, a majority of patients have to travel thousands of miles for treatment.
Read 5 tweets
Jun 4
49% of Bank Deposits are NOT Insured.

So, if the bank defaults, you cannot recover your money! 😨

Read the 🧵to know whether your deposits are protected or not ⤵️

#wealth #invest
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Why are 49.1% not insured? ⤵️
A huge amount of the deposits are not insured because the depositors surpass the maximum coverage of Rs 5 Lakh in the same right & same capacity.

Still confused? Read on for further understanding👇
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Jun 3
Ratios can be misleading if you don't read between the lines! 🧐

For instance,
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If both companies are eerily similar, which company will you invest in?

Blind guess: Company B?

You could be wrong. Here's why ⤵️
What if we say, despite a low margin, company A generates more Return On Invested Capital (ROIC) than company B! 🤯

Company A's ROIC = 90%
Company B's ROIC = 60%

Don't believe?

Let's breakdown ROIC to understand better ⤵️

#investing
ROIC = Profit / Capital

This can be split into:
Margin = Profit / Revenue
Turnover = Revenue / Capital

So, ROIC = Margin * Turnover
Read 6 tweets

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