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with Sahil Chhabria – A level graduate, Vidyashilp Academy, Bangalore Term life insurance policy:Term life insurance provides life insurance coverage for a specified term. Term life insurance lasts for a specific time period – this is called the term of the policy. The policy holder pays premiums (annually or monthly) to the insurance company during the term […]

Our composite portfolio is the sum total of all individual client portfolio values and our composite highwater mark is the sum total of all individual client high water marks. We have explained the concept of a highwater mark in a blog – High watermarking : 28-Feb-17. The performance being reported is a time weighted return (TWRR)

It is said that a retiring individual would require a corpus of about 30X one’s annual expense. This useful rule of thumb, however presents an innocuous picture of a complex problem that has multiple assumptions and constraints. Solving the problem of retirement is essentially establishing a corpus that needs to be built so that the

Morgan Housel’s book The Psychology of Money caught our attention on two fronts. The first in that it echoed in so many ways how we at Aroha think about investing and wealth and the second in some startling insights into the nature of wealth, its compounding and the role of luck in investing. Extreme examples:In

In a circular dated 13-Dec-21, SEBI has published an Investor Charter that Investment Advisers have to put up on their websites and/or share with their clients. In light of this regulatory requirement, Aroha Capital has placed on its website this Investor Charter (scroll down on any of our web pages to the bottom and you will

We have always wondered upon the effect time horizon has on decision making. There is a qualitative difference between the split second decision made on where to return a shot on a badminton court versus for example choosing where you would like to stay after retirement. Certain decisions require us to respond with gut and

Nobel Laureate Daniel Kahneman is a co-author in a recent book – “Noise – A Flaw in Human Judgement” . In chapter after chapter of the book, deeply disturbing facts are presented about significant noise in professional human judgement. Bail applications, asylum decisions, child custody decisions, medicine, forecasting, hiring and staffing, forensic sciences, insurance underwriting, granting patents

Indian markets are at an all time high. Short term interest rates are at a low. Current and prospective inflation is arguably high. While the expected return for equity is muted, investing in debt offers even poorer prospects. Short term real interest rates are negative. The only way to increase yields above inflation without compromising

We are fans of products which have low intermediary charges and low taxes. The drag of intermediary charges and taxes on investments are real and have a significant deleterious impact on the long term returns of investments. One way to reduce intermediary charges is to follow a passive index investing strategy. While passive equity index

We have repeatedly written about the need to play defensively when investing. Playing defensively means to first avoid costly mistakes rather than trying to hit winners. Amongst the first steps to avoiding costly mistakes is minimizing intermediary expenses and reducing tax drag on investments. Distributor/agent commissions, brokerage and investment advisory fees are vital ingredients of