Vipin Khandelwal

Cockroach Theory for markets, investing and life

November 20, 2015 by Vipin Khandelwal

Cockroach theory – are you kidding me?

What comes to your mind when I say ‘Cockroach’? A slimy, dirty, ugly creature that you want to stay as far as possible from. And yet, much to our irritation, it appears just about everywhere.

Do you know that a cockroach can survive a nuclear attack? Yes, a nuclear attack!

The ‘keeda‘ or cockroach has amazing resilience. It can go without air for close to an hour, withstand freezing temperatures and survive underwater for half an hour.

No wonder, these special features have given rise to a cockroach theory and become an inspiration for a cockroach portfolio.

Let’s see how the cockroach theory gets applied to markets, investing and life.

Retirement Planning for Me – What does it take?

February 22, 2017November 18, 2015 by Vipin Khandelwal

As a part of my client engagement for financial planning and investment advisory, one of the key goals that is discussed and planned for is retirement.

Typically, retirement has been the most undervalued goal. It never seems like a priority.

Recently, in my latest engagement, I was working on calculating the retirement needs of my client – let’s name him Deepak.

Deepak is in his early 40s, in a well-paying job, expected to do well in the future too. He wants to ensure that he can provide enough for his daughter’s education and his own retirement.

“When do you want to retire”, I ask.

“At 55 age”, was the immediate reply.

“OK, let’s work this out.”

As I worked out the numbers, I saw something terrible. With the current situation, Deepak cannot retire by 55. In fact, he might have to well carry on working till over 65 years of age.

I am working with Deepak to find out the best solution to help him reach his goals. With some adjustments to his portfolio and investment habits, it would be achievable.

So, that was Deepak.

But wait, don’t I need a retirement plan for me?

How KYC and FATCA can stop your mutual fund investments?

April 17, 2016November 16, 2015 by Vipin Khandelwal

As an existing mutual fund investor, you would have done your KYC (Know your Customer). As a part of the process, you submit specific information about your identity, residence, income and political exposure. KYC is mandatory.

In case you are not sure whether your KYC is completed, you can check on CVL’s website here or CAMS website here. All you have to do is enter your PAN and the system will show your KYC status.

That is not enough!

So, if you thought you are done with your KYC, you are in for a surprise. Yes, your current KYC information is not enough. Now, there is an additional requirement that has come up for existing mutual fund investors.

When should you not buy a house?

September 5, 2018November 13, 2015 by Vipin Khandelwal

There is some fancy about owning a house. For ages, a house has been considered the ‘best investment’. A house of your own happens to be a dream for most people.

There’s something emotional about it too. Your parents, your relatives, everyone recommends to buy a house.

“Khud ka ek ghar to hona hi chahiye” (You should have one home of your own).

And then you see those full page advertisements giving away fancy deals, offers that promise nothing less than heaven. The banks too are willing to give you loans at ‘easy EMIs‘.

Combine all this, you are willing to stretch yourself to any extent to get your dream home.

Knock, knock!

“Can we take a break please and look at some important issues?”

Happy Deepawali – Let your light shine!

November 10, 2015 by Vipin Khandelwal

A few years ago, when I was on a road trip, my first stop was at Gandhinagar, Gujarat’s capital city. In the evening, since I had nothing to do, I strolled into the famous Akshardham temple.

I came to know of a sound and light show that was going to happen late in the evening. I bought the tickets. I had absolutely no idea what I was going to witness. It was one of the most spectacular sound and light shows I had ever seen. It is also known as the world’s first spiritual show of the kind.

sound, light, laser show at akshardham temple gandhinagar The show is based on the story of a conversation between Yama (the Hindu God of Death) and Nachiketa (a young boy). Nachiketa waited for 3 days at the doors of Yama, since he was out for work. When he returned, he wanted to compensate for the young boy’s wait. So Yama told Nachiketa to ask for 3 boons.

The first two were easy.

Mutual Fund benchmarks: What do they tell you?

May 13, 2016November 5, 2015 by Vipin Khandelwal

Do you know what is the benchmark of the following mutual fund schemes?

If you are wondering what a benchmark is, it is an index against which the fund compares its performance. For example, a mutual fund would say that it is going to benchmark against the BSE Sensex, the bellwether index of 30 most liquid stocks. With the fund management skills, it would do better than the Sensex; means it will deliver better returns than the Sensex.

Every mutual fund scheme chooses its own benchmark.