Aaditya Chhajed, CA, CFA

“Greed is good” said Gordon Gekko in Hollywood movie “Wall Street”. Wealth and accumulating it is considered as an occupation of capitalists and is often seen in a negative connotation. I have heard stories of how parents forbid their grown-up kids from investing in the stock market, equating it with a den of speculation. Is the pursuit of wealth an endeavor, which is smeared with greed and negative karma. My profession includes investing in the stock markets - the temple of capitalism - gives me an opportunity to interact with different people, who are rationally expected to always keep maximizing their wealth. Everyone wants to get a slice of the wealth creation with greed and fear being an integral part of the ecosystem. So what is wealth building and how is it related to Financial Independence. What is this new cult “FIRE” (an acronym for Financial Independence Retire Early) all about? FINANCIAL INDEPENDENCE Wikipedia defines Financial independence (FI) as the status of hav...

I recently read the book 'Poor Charlie's Almanack - The Wit and Wisdom of Charles T. Munger ( famously known as Charlie Munger) . Warren Buffet would not have achieved success without Charlie Munger with him. This book is about the life of Charlie Munger, his approach to learning, investing, his speeches, and much more. The real joy of studying Warren and Charlie is not that one can learn a great deal about how to compound money at a high rate for an extended period- though this certainly is a nice side benefit! Rather, by absorbing their teachings, one will gain a far deeper understanding of the human condition, the state of the world, how to think rationally, and most importantly, how to better lead a life of integrity, happiness, and kindness (here's a hint: these characteristics are intertwined). This post is gonna be a little long (8 minutes read), so hang on.  My learnings from this book: Charlie Munger in his own words would tell you: Acquire worldly wisdom and adjus...

You may contact me in case you need to ask or tell me something. I am waiting to hear from you. Stay home! Stay safe! Thank you very much for your time! With respect, Aaditya Chhajed CA, CFA(US) All Levels Cleared, MCom E: chhajedaaditya@gmail.com M: +91-9404055222. Instagram: @chhajedaaditya  Aaditya is the founder of Aaditya Chhajed Financial Advisory Services, a Financial Planning and Wealth Management Firm. He loves helping family, friends, and, clients make better financial decisions.  He believes learning is perpetual.  He loves reading books, traveling around the world. He is a commerce postgraduate and Chartered Accountant. He has also cleared all levels of CFA(US) in the first attempt.    Disclaimer: Investors should seek the advice of their financial advisor prior to making any investment decision based on this report or for any necessary explanation of its contents. Future estimates mentioned herein are personal opinions and views of the author. ...

Time flies...but it's not too late to save tax. You can create wealth too! Paying tax on hard-earned income is painful. For the financial year ended on 31 March 2020,  if taxable income is INR 5,00,000 then no tax; if taxable income is INR 5,01,000 then tax will be INR 13,208. You still have time until the end of this month,  to reduce your taxable income by up to INR 1.5 lakh under section 80c of the Income Tax Act, in case you have not already done so. Individuals and HUFs can avail of this benefit. Tax-saving investment options include: Fixed deposits PPF - Public Provident Fund NPS- National Pension System NSC - National Savings Certificate ULIP- Unit Linked Insurance Plans ELSS Mutual Funds According to your   age,  risk profile,  and other investment objectives; we can help you to  choose investment(s) which benefit you in terms of: Greater opportunity to create wealth Less lock-in period Low tax on income from Be proactive. For the current financia...

These are exciting times. Indian Equity markets benchmark Sensex had come off from 42000 to 26000, now sharply risen to 37000. The buzz is palpable, and making a quick buck seems rather easy. We present a three-point strategy on what investors must do now. Cleanse your portfolio: Remember that sure-fire stock tip your friend told you about. The hidden gem which was supposed to be the next big story, but never quite took off as expected. Instead, it ended up as one of your worst investments. Or that trendy thematic mutual fund which your broker promised would be the ticket to your financial nirvana . But sadly, the fund failed to deliver on the return front and your broker failed to return your calls when quizzed about its performance. Now is the time to cleanse your portfolio of such investments. Rising markets provide the perfect opportunity to make up for incorrect investment decisions, and that too at a profit.  It is important that your investment portfolio is only made of aven...

Firstly, I pray for you and your family's safety. In 20th Century India, the primary investments avenue included: Own business Real Estate Gold Fixed Deposit Money kept under the mattress In this blog post, let's have a look at how 21st Century's financially literates  look at investments: Own businesses:   Even if a substantial amount of net-worth is invested in their own businesses, they understand its risk (e.g. key-man risk) and the need for diversification. Real Estate: Unless their full-time business is real estate, they understand it is only for self-use. Gold: Even they believe gold is not an investment, but for self-consumption (jewelry). Fixed Deposits:   Investing in fixed deposits is like home quarantine of your young and bright children full of potential for years and years.   Fixed income investments are only for short term goals. Mostly retirees invest some part of net worth in fixed income due to lesser risk appetite and cash flow requirements....

Avenues for investments include: Public Equity (Listed Companies) Private Equity (Startups, Own business) Equity and Debt Mutual Funds Bonds Fixed Deposits Government Schemes, etc. While dealing with my own clients', I see a lot of people who have had very bad experiences in the past. Such experiences include the erosion of capital due to greed or less prudent decisions in public equity markets. These people never return to equities for a lifetime and stick to fixed-income investments. Retirees primarily invest in fixed income securities, as risk appetite comes down as age increases.  One of the avenues for Indians to save and park money has been fixed deposits. Debt funds are a good alternative to fixed deposits. Where do Debt Mutual Funds Invest? Features of Debt Funds and Fixed Deposits? The best part of debt funds: In case of fixed deposits, one has to pay tax on the interest every year. This is not the case with debt funds. Unless and until you sell the debt funds investments,...