Why Even High Earners Need an Emergency Corpus

 

Conversation Over Lunch

CFP Vaidy & His Cousin Balaji

“Finally back home!” laughed Balaji as he slid into the restaurant booth next to his cousin Vaidy. Like every visit to India, he had dropped into the cousins’ office unannounced, pulled them out in the middle of a busy workday, and whisked them off for lunch.

“How’s life in the US?” asked Vaidy.

“Good now… but I had a bit of a scare two months back,” Balaji replied. “I was laid off for nearly eight weeks. Nothing to do with performance, the company was restructuring. Luckily, it all settled and they rehired me, but those two months were stressful.”

“You never mentioned!” said Vaidy.

“I didn’t want to alarm the family. And honestly, I thought I was secure, good salary, solid lifestyle… why worry? But then I remembered the COVID years. Some of my close friends lost jobs. One had to sell his car to pay hospital bills when his father was infected. I had promised myself back then that I’d maintain an emergency fund… but I got complacent.”

Vaidy nodded. “That’s exactly why we keep emphasising the emergency corpus when we advise clients.”

Balaji sighed. “I thought insurance would cover everything. But when my dad fell sick, the insurance deductible and co-pays were huge. I had to swipe credit cards. Paid interest for months.”

“This is precisely what we see,” said Vaidy. “People think insurance is enough. But certain out-of-pocket expenses, job loss, temporary salary cuts, even natural disasters, they need immediate liquidity. If there’s no emergency fund, people are pushed toward loans or forced to sell investments or property.”

Balaji nodded thoughtfully. “When I got laid off recently, I realized how fragile things can be. I had savings, but all locked in retirement accounts or long-term investments. Withdrawing early would attract penalties, and selling them when markets were down made no sense.”

“That’s where the corpus helps,” Vaidy added. “Ideally 6 to 12 months of expenses - liquid, accessible. It protects retirement goals, provides peace of mind, and keeps debt away. And during a market downturn, having cash ready gives flexibility to seize opportunities rather than sell in panic.”

They paused as lunch was served, and Balaji smiled. “You know, losing my job briefly was a wake-up call. I don’t want to live paycheck-to-paycheck even with a good salary. When I return, emergency corpus is priority number one.”

“As a personal favour,” laughed Vaidy, “do it before your next vacation otherwise, our next lunch discussion will be on what went wrong again!”

Balaji chuckled. “Deal. And this time, I’ll help my buddies set up theirs too.”

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How Naidu Discovered the Truth About SIPs - Part 2

 

“So When Should I Start?”

Debunking the Remaining Myths on SIPs

Naidu poured himself a glass of water as Srini continued.

“You asked why SIPs are still trusted so much,” Srini said. “Because even though SIPs don’t guarantee profits, they build discipline. And discipline, not luck, creates long-term wealth.”

“So SIP is basically paying myself first every month,” Naidu summarised.

“Exactly. And here’s another myth, many people think SIPs are only for long-term goals.”

“That’s what I believed too,” Naidu admitted.

“SIPs work for long-term goals like retirement,” Srini said, “but they can also be used for short-term goals like vacations or down-payment planning. It depends on the type of fund and your risk appetite.”

Naidu suddenly smiled. “You know, I almost dropped the idea because I thought SIP needs big money. I assumed minimum ₹5,000 or something.”

Srini laughed. “That’s the best myth of all. You can start SIPs with ₹500 a month. The point is to start, and increase gradually as income grows.”

“Hmmm…” Naidu paused. “Another friend told me once you start an SIP, you can’t stop or change it. Is that true?”

“No,” Srini shook his head. “You can increase, decrease, pause or cancel an SIP anytime. You’re completely in control.”

“That’s a relief!” Naidu exhaled. “But one last doubt, does SIP remove the need to time the market?”

“It reduces it, but it doesn’t eliminate it,” Srini clarified. “Instead of throwing one big lump sum at the market hoping the timing is right, SIP spreads your investment across months. But you still need to choose the right funds and review performance periodically.”

Naidu leaned forward. “So overall, SIPs are not magic, but they create a system. And the system creates money.”

Srini smiled. “Now you’ve got it.”

“And why do you personally recommend SIPs?” Naidu asked.

“For four simple reasons:

1.      They force disciplined investing even on months when spending temptation is high.

2.      They are flexible you start small and scale up.

3.      They average out cost protecting against market volatility.

4.      They make investing effortless thanks to auto-debit.”

Naidu stood up excitedly. “Enough talk, I’m ready to start. Let’s fix how much and where to invest.”

Srini laughed. “We’ll plan based on your goals. Investing without clarity is like driving without a destination.”

As they walked out of the café, Naidu said, “I came thinking SIP means guaranteed plan. Now I leave thinking SIP means guaranteed discipline.”

Srini smiled. “And discipline,” he replied, “is what ultimately builds wealth.”

About the Author

How Naidu Discovered the Truth About SIPs - Part 1

 

“SIP? I Thought It Was a Guarantee!”

A Conversation Begins

“Naidu! After so many years, I can’t believe we randomly bumped into each other at the café!” Srini laughed as they found a comfortable corner table.

“Same here!” Naidu smiled. “And since we exchanged numbers, I’ve been following your WhatsApp status daily. You post a new blog every single morning. Tax, investments, Wills - you’re unstoppable!”

Srini grinned. “It’s my small way of sharing what I learn.”

“Well, your blog on SIPs got me thinking,” Naidu admitted. “The one on mutual funds. I never understood SIPs before, and honestly, I thought SIPs were guaranteed investment plans. That’s why I called you today. I want to start investing, but I want to understand things properly.”

“That’s exactly why I write,” Srini replied. “Let’s start from the basics. First, SIP is not an investment by itself.”

Naidu looked puzzled. “Then what is it?”

“SIP is only a method of investing in mutual funds,” Srini clarified. “Think of it like depositing money regularly into your savings, but instead of a bank, it goes into a mutual fund of your choice.”

“So SIP is just the way I invest… not the product?” Naidu repeated slowly, as if correcting years of misunderstanding.

“Right,” Srini nodded. “You choose the fund, equity, debt, hybrid, international - and then decide how much you want to invest every month. The SIP just automates it.”

Naidu leaned back. “Okay, but I had another belief, SIP means no loss. That’s why everyone recommends it!”

“That’s a myth,” Srini replied firmly. “SIP doesn’t protect you from losses. When markets fall, your fund value also falls. The big advantage of SIP isn’t no loss,  it’s rupee cost averaging.”

“That term sounded fancy in your blog,” Naidu chuckled. “Explain it in simple words?”

“Very simple,” Srini said. “When markets are low, your SIP buys more units. When markets are high, it buys fewer. Over time, the average purchase cost reduces,  and that helps build wealth.”

Naidu nodded slowly. “Makes sense. But another doubt, do SIPs guarantee returns? I know fixed deposits give sure interest.”

“No guarantee,” Srini answered. “SIPs, especially in equity funds, are market-linked. Equity SIPs earn better in the long term only if you stay invested with patience. Debt SIPs feel stable but even they can fluctuate.”

Naidu scratched his head. “So SIP isn’t safe like FD and it isn’t guaranteed. Then why do people still trust it so much?”

Srini smiled knowingly. “That is exactly what we’ll discuss next.”

Click here to go to Part 2.

 

The Cappuccino That Taught Us About Inflation

 

The Impact of Inflation on Your Finances - A Friendly Café Conversation

Jagruti, Swapna and Shri finally managed to meet after months of failed plans. At one point, the three of them sat in the same office, occupying adjoining desks, chatting all day. Now each was in a different organisation, juggling responsibilities, deadlines and life. It took multiple reschedules to land even this short coffee break, but the joy of meeting again made every minute worth it.

“Have you noticed how our mothers keep reminding us about prices from their days?” Jagruti laughed, stirring her cappuccino. “Mine keeps saying, ‘In our days, this used to cost just ten rupees, now look at the price!’”

Swapna nodded. “Same here! And honestly, sitting here today, ours costs ₹250. I’m sure twenty years later our kids will hear the same dialogue from us.”

Shri leaned in. “Actually, now that you mention it, imagine what this cappuccino will cost after twenty years. If inflation averages about 6% a year, ₹250 becomes nearly ₹800. If it’s 8%, it crosses ₹1,200. Crazy, right?”

The table fell silent for a moment, the numbers were an eye-opener.

“That’s inflation,” Shri continued. “It’s not just a word our parents throw around. It silently increases prices year after year, and unless our income and investments grow faster than inflation, we’ll feel constantly short of money.”

Swapna pulled out her phone calculator. “So inflation isn’t the same for everything, right? Food inflation, fuel inflation, lifestyle inflation… they’re all different.”

“Exactly,” Jagruti said. “And the scariest one, education inflation. I was checking fees for MBA courses abroad for my cousin. It’s going up at 9–12% yearly. And then there’s forex inflation, INR losing value against USD. That makes foreign education even more expensive.”

“So if someone plans for higher education overseas, they’re not fighting just inflation - they’re fighting double inflation,” Swapna concluded.

The three of them paused again, sipping their cappuccino with a new level of awareness.

“Let’s think practically,” Shri added. “If we simply keep money in a savings account at 3–4% interest, but inflation is 6–7%, we’re getting poorer every year without realizing it. The money grows, but its buying power falls.”

“So the goal isn’t only saving,” Jagruti said. “It’s investing in places that beat inflation - equity mutual funds, index funds, high-quality bonds, maybe gold allocations - basically a basket that grows faster than prices rise.”

“Right!” Swapna smiled. “We don’t need to be finance experts. We just need to make sure our investments are in the right direction, not losing to inflation.”

The girls finished their coffee with a collective nod. Inflation wasn’t just a boring economic term anymore, it was a reminder that money must work to stay relevant.

“Someday,” Swapna joked while getting up, “our kids will sip their overpriced cappuccinos and laugh at our ₹250 story. But if we invest right, we’ll be able to pay the bill without worrying!”

About the Author

Retirement Panic at 45 - A Lesson for Every 20-Something

 

A Saturday evening. Three friends Hrishi, Rohan, and Kaustabh are sipping cold coffee at their usual hangout spot.

Hrishi: You look unusually thoughtful today, Rohan. What's cooking?

Rohan: (laughs) Nothing too dramatic. Just overheard Dad and my uncle talking about one of their clients, around 45 years old, and he has barely saved anything for retirement.

Kaustabh: 45?? And no savings? That’s scary. Imagine being that close to retirement and starting from zero.

Rohan: Exactly! Dad said the guy was panicking. He finally “realised” he needed to save. But all those years of delay cost him the one thing money can’t buy - time.

Hrishi: Time really is the real magic, isn’t it? Compounding basically rewards the people who start early.

Rohan: True… but Dad also said something interesting. He told the client, “Late is not lost. What matters is how you optimise from today.”

Kaustabh: I like that. So what would someone who’s starting late actually do? Doesn’t it feel overwhelming?

Rohan: Of course it does. But Dad listed some action steps that sounded practical. First, budgeting. Track where money actually goes. Until you know that, you can’t redirect anything towards savings.

Hrishi: Most people don’t even realise how much they burn on unnecessary stuff -  subscriptions, takeaways, luxury impulse buys…

Kaustabh: (smiles) Don’t look at me.

Rohan: (laughs) Second, tackle high-interest debt. It’s like a silent thief. Every rupee paid in interest is a rupee taken away from your future.

Hrishi: Makes sense. Clear debt, free up cash, then that cash becomes savings.

Rohan: Exactly. Then step three - boost retirement savings intentionally EPF, NPS, SIPs in mutual funds. Automate it so savings happen like clockwork.

Kaustabh: And investing doesn’t need a genius IQ, right? Just simple index funds or diversified mutual funds, low cost, long term.

Rohan: That’s what Dad said, invest smarter, not harder. Fancy doesn’t necessarily mean better.

Hrishi: And lifestyle changes don’t have to mean being miserable. Reducing expenses ≠ abandoning life.

Kaustabh: True. I’ve realised how many fun things are actually free. Parks, cycling, movies at home… You don’t need to “buy happiness”.

Rohan: Plus, side income is a game-changer. One gig can become the bridge between “late start” and “comfortable retirement”.

Hrishi: Wow… So even if someone starts late, it's still possible?

Rohan: Definitely. Dad said something that stuck with me “You may not have time on your side, but you have experience, stability and higher income. That is your advantage.”

Kaustabh: That’s powerful. The whole game is start now and stay consistent.

Hrishi: Let’s make a pact, none of us should reach 45 and realise we forgot to take care of our older selves.

Rohan: And while we’re at it, let’s also make sure every youngster we know - cousins, juniors, siblings, friends understands this early and never lands in the same situation.

Kaustabh: If we learn this lesson in our 20s, the least we can do is pass it forward.

About the Author

How Gold Fits in a Modern Portfolio - Explained Over Tea

 

How To Diversify Your Portfolio With Gold, And Keep It Tax Efficient

Geetha settled into the sofa with her evening tea. “Priya, nowadays everyone is talking about gold again. I already own some jewellery, isn’t that enough for diversification?”

Priya smiled. “Jewellery is beautiful, Maa. But from a financial point of view, it’s not the best form of investment. Making charges, wastage and resale deductions reduce returns drastically. If we think about gold purely as an investment, there are much more efficient ways to hold it.”

Ria joined in, curious. “Like what? I also tend to buy ornaments during festivals and call it ‘investing’.”

“That’s what many people do,” Priya replied. “But consider Sovereign Gold Bonds, Gold ETFs and digital gold. These give exposure to gold without the disadvantages of jewellery.”

Geetha leaned forward. “Sovereign Gold Bonds; I’ve heard of them but never paid attention. How do they work?”

“SGBs are issued by the Government of India,” Priya explained. “The best part is they pay interest of 2.5% per year on the invested amount and if you hold till maturity, eight years, capital gains are completely tax-free. So you get both appreciation in gold price and tax savings.”

“That actually sounds very smart,” Ria said. “But what if someone wants liquidity?”

“Then Gold ETFs are convenient,” Priya replied. “You buy units on the stock exchange just like shares. If held for more than one year, gains are taxed at 12.50% which reduces tax significantly. So ETFs work well when you want to keep the flexibility to buy and sell.”

Geetha thought aloud, “And digital gold?”

“Good for small or gradual accumulation like SIP,” Priya said, “especially for someone who wants to set aside a specific amount every month. But it does not enjoy tax benefits like SGBs and sometimes platform charges apply. I’d treat it as a shorter-term holding, not the core investment.”

Ria nodded. “So if someone wants the best of both worlds, tax savings plus liquidity, they should mix SGBs and ETFs?”

“Exactly,” Priya said. “SGBs for long-term wealth building, ETFs for flexibility. Digital gold only if convenience is the priority. And remember, gold shouldn’t dominate the portfolio. Five to ten percent allocation is usually ideal. The goal is not to ‘make money from gold’ but to balance risk in the overall portfolio.”

Geetha smiled, relieved. “Now that makes sense. Instead of just accumulating jewellery, I’d rather invest smartly and tax-efficiently.”

Priya laughed. “That’s the whole idea, let gold protect the portfolio, not clutter the locker.”

About the Author

Stay the Course, But Keep an Eye on the Map

 

Investors often hear two golden rules of wealth creation: monitor your portfolio regularly and stay invested for the long term. At first glance, these instructions can seem contradictory. If the idea is to remain invested for years, why keep checking the portfolio? Conversely, if one is reviewing the portfolio frequently, does it not imply constant changes? In reality, these two principles are complementary and, when balanced well, form the foundation of disciplined investing.

Monitoring a portfolio regularly simply means keeping track of how investments are evolving over time. It is not an invitation to react impulsively to every market swing. Rather, periodic reviews, say quarterly or semi-annually, help investors assess whether their investments are performing as expected and whether they continue to align with their financial goals, risk tolerance, and evolving personal situation. The purpose is awareness, not hyperactivity.

For example, a diversified equity portfolio designed to fund retirement twenty years later does not need daily scrutiny. But reviewing it a few times a year ensures that asset allocation remains intact. If equities have surged sharply, they may now dominate the portfolio disproportionately, calling for rebalancing. Similarly, if a particular stock or fund has consistently underperformed due to structural issues rather than temporary volatility, a planned exit may be justified. Regular monitoring helps investors stay informed, make timely decisions, and course-correct before small drifts become big deviations.

On the other hand, “staying invested” is a behavioural discipline. Long-term wealth creation depends significantly on compounding, and compounding works only when investments are allowed to grow over time without constant interruptions. Many investors hurt their returns not because they selected the wrong investments, but because they exited too soon, either out of fear during market downturns or excitement during short-term rallies. Staying invested teaches patience, reduces emotional decision-making, and prevents the classic investor trap of constantly chasing the next “best” opportunity.

However, staying invested does not mean blindly holding on. Even a long-term investment deserves a periodic reality check. If the fundamentals of a business deteriorate, the management changes negatively, regulations alter prospects, or the original reason for investing no longer holds good, staying invested indefinitely becomes counterproductive. The philosophy is to remain invested as long as the premise remains valid, not to remain invested at any cost.

True investing wisdom lies in combining both approaches. Monitor the portfolio regularly to stay in control, but avoid reacting unnecessarily to noise. Stay invested to enjoy the power of compounding, but remain alert to genuine red flags. This balance keeps the portfolio healthy and the investor focused on long-term goals without falling prey to either negligence or restlessness.

About the Author

Building a Career Helping Others Build Wealth

 

Inside the Advisor’s Office : The Case for a Second Innings

Karthik leaned back in his chair, still taking in the buzz of Bharadhwaj Investsmart. “You both make this look so effortless,” he said. “But what makes financial advisory such a strong career path? I feel like I’m late to the party.”

Vaidy chuckled. “Late? You’re stepping in at the right time. The world is changing fast. People want to invest, but they don’t know how. And that’s where a financial advisor steps in, not just to sell products, but to guide families toward disciplined, goal-based investing.”

Srini joined in, tapping his pen thoughtfully. “Today’s clients are not looking for someone to push mutual funds or insurance. They’re looking for someone who understands their life, their goals, fears, tax situation, cash flow, and what money means to them. That’s the power of this profession.”

Karthik nodded. “So the demand has gone up because more people are investing?”

“Much more,” Vaidy replied. “We’re a young nation. Every year, millions step into the earning bracket, and most of them are first-time investors. They don’t want jargon. They want someone who speaks their language and gives direction.”

“And trust has evolved too,” Srini added. “The regulator has played a huge role in building transparency and safety in the financial ecosystem. Clients feel more confident to invest. And ethical advisors get rewarded, not only financially but with loyalty.”

Karthik smiled slightly. “But starting a business like this… isn’t it capital-intensive?”

“That’s the beauty,” Vaidy said. “You don’t need huge funds to get started. A certification, a laptop, and a willingness to learn are enough. The commissions take time to build - but once they do, it becomes a recurring and scalable income stream. Over time, the business starts rewarding you for relationships you nurtured years back.”

Srini leaned forward. “And you already have a huge advantage. Years of corporate FX experience, plus your people skills. And with some structured learning in advisory and taxation, you’ll walk in with a stronger profile than most beginners. Clients value credibility and maturity.”

Karthik looked thoughtful. “So it’s not only money… it’s impact too.”

“That’s the best part,” Vaidy said quietly. “When someone retires comfortably because of you… when a child studies abroad because you planned it early… when a family sleeps peacefully during a market crash because they trust you - that’s satisfaction no corporate job can match.”

Karthik breathed out slowly, but this time with clarity, not confusion. “Maybe this really is the right second innings.”

Srini smiled. “Welcome to the profession of trust.”

About the Author

A 66-Year-Old’s Wake-Up Call Converting Wealth into Income

 

Conversation at Bharadhwaj Investsmart

The meeting room at Bharadhwaj Investsmart had a calm, reassuring ambience,  exactly the kind that helped people talk about money without hesitation. Mr. Varmaji, 66 years old, retired but continuing as a consultant, sat across from CA Srini with a mix of pride and quiet worry in his expression.

They exchanged warm greetings, reminisced briefly about old colleagues, and laughed about the changing corporate world. Gradually, the mood shifted to the purpose of the meeting.

“Sriniji… I thought retirement would be smoother,” Varmaji began, his voice steady but low. “I’ve worked hard, earned well, raised my children, given them good education. They’re both settled, thankfully not depending on me now.”

Srini nodded, encouraging him to continue.

After a moment of silence, Varmaji opened up. “As for my finances… I’ve not been able to build a significant corpus. Only about fifty lakhs in liquid form. I know it’s not great, but that’s how things turned out.” He paused, then added, “But I am invested heavily in real estate - the native house, my Mumbai apartment, the ancestral place with my brother where I hold 50%, and another ancestral house in my wife’s name.”

Srini listened without interrupting, making notes slowly and respectfully. Once Varmaji finished, Srini leaned forward, gentle yet firm.

“Sir, thank you for sharing everything so transparently. You’ve fulfilled every family responsibility beautifully. But I must speak to you honestly… A liquid corpus of ₹50 lakhs will not be adequate for the next 20 - 25 years of retired life.”

Varmaji absorbed the words without resistance, almost as though he expected to hear them.

“You’re ‘asset rich’ but not ‘cash flow rich’,” Srini continued. “Most of your wealth is tied up in property, which does not support your monthly needs. Emotionally valuable, yes. Financially useful in retirement, not really.”

He opened an Excel sheet. “Look here. The rental yield from these properties is barely 2 / 2.5% after tax and maintenance. But if even part of the real estate say half your share of the ancestral property is liquidated and invested in a hybrid fund, it can generate 6.5 / 7% annually and continue to grow.”

The numbers spoke louder than the words. Varmaji looked thoughtful rather than defensive. “I’ve always been sentimental about property… but sentiment doesn’t pay medical bills, I guess.”

A few minutes later, CFP Vaidy joined the meeting, unaware of the discussion that had already taken place. After quickly reviewing the asset sheet, he smiled knowingly.

“Sir, you have excellent real estate. But unless you convert some of it into financial assets, your retirement income will remain tight.”

Varmaji laughed lightly. “So, both of you are saying the same thing.”

Vaidy replied, “That means it’s time to take action, not stress.”

As he left, Varmaji shook both their hands warmly. “A sincere thank you to you both. I came here for advice, but I’m walking out with clarity.”

About the Author

Lessons on Becoming a Great Investment Advisor

 

Inside the Advisor’s Office: A Conversation on Second Innings

It was just past 10:30 a.m. at Bharadhwaj Investsmart when Karthik took a deep breath and looked around the cabin. The polished desk, the familiar laptop screens showing client holdings, and the calm hum of quiet discipline felt strangely familiar, yet completely new. After 25 years in the corporate foreign exchange world, he had finally decided to call time on that chapter. At the urging of his cousin, CFP Vaidy, he was here to explore a new life as a financial advisor.

Vaidy walked in with his warm grin. “So, the corporate gladiator finally retires?” he teased, settling into his chair.

Karthik smiled. “Not retired. Just… ready for something that feels more meaningful. You’ve been telling me for years that I’d do well in this space.”

Before Vaidy could reply, CA Srini stepped in - calm, methodical, carrying his files the way a surgeon carries instruments. Srini’s expertise lies in tax strategy and holistic financial advisory. Together, he and Vaidy formed the perfect balance of markets and money science.

“Welcome to the madhouse, Karthik,” Srini said good-naturedly. “So, Vaidy finally convinced you?”

“Maybe it’s time,” Karthik admitted. “But I’m not sure where to begin.”

Vaidy leaned forward. “Let’s start with the basics, the mindset. Product knowledge is essential, yes: mutual funds, bonds, equities, insurance… you’ll master all that quickly. But this profession goes beyond understanding markets.”

Srini added, “You need to understand people. Their fears, aspirations, biases, blind spots. They come to you not with numbers, but with emotions. Your job is to turn those emotions into a plan.”

Karthik listened intently.

“Think like a doctor,” Vaidy continued. “No prescription before diagnosis. Ask, listen, observe. What are their goals? What’s their cash flow reality? What’s the risk they say they can take, and what can they actually tolerate when markets fall?”

“Communication is the bridge,” Srini said. “If you can’t explain things in simple language, in a way that makes people feel safe rather than overwhelmed - expertise won’t matter.”

Vaidy nodded. “And this business grows through trust, not selling. Referrals, consistent follow-up, being present when clients need you. If you stay honest and competent, the money and success will follow.”

“What about portfolio construction?” Karthik asked.

“That’s where science meets art,” Srini answered. “Risk, returns, tax efficiency, liquidity… and keeping clients grounded during volatility. Markets test their nerves and yours.”

Karthik leaned back, absorbing every word. “I was worried I was starting too late. But now I feel like… maybe the second innings can be even better.”

Vaidy smiled. “If you blend skills with empathy, you won’t just succeed, you’ll enjoy the journey.”

“And who knows,” Srini added with a playful grin, “ten years from now, you might be the one giving this pep talk, and smiling at your portfolio too.”

About the Author

When Markets Bark Like Bruno

Conversation at Bharadhwaj Investsmart

It was late evening at Bharadhwaj Investsmart. Charts on screens, coffee cups half full, everyone winding down after a long market day. Ramesh and Aditya had dropped by for a casual catch-up with Vaidy and CA Srini.

Ramesh: “Today’s market fall was crazy. Nothing happened in India, but the moment the US inflation numbers came out last night, everything here tanked. Why do we react so much to what’s happening abroad?”

Aditya: “Exactly! Our companies are posting great results. Still, we fall because someone on Wall Street sneezes?”

Everyone laughs, and Vaidy leans back with his trademark grin.

Vaidy: “Okay, think of it like this… You both have dogs at home, right?”

Ramesh: “Yes. Bruno. Absolute gentleman.”

Vaidy: “Good. Now imagine you take Bruno for a walk. He’s calm, tail wagging, not a troublemaker. But the moment you pass that lane where a bunch of stray dogs sit and bark for no reason… Bruno also starts barking.”

Aditya nods immediately.

Aditya: “Oh yes! Even mine does that. Suddenly becomes aggressive, drags the leash, growls… the whole drama.”

Vaidy: “Exactly. And the moment you pull them away and talk to them normally, they return to being the same sweet, trained pet again. Nothing changed inside them, only the environment for a few minutes.”

CA Srini: “That’s literally what the domestic market does when foreign markets go haywire. Our fundamentals don’t suddenly collapse. But when the entire global pack starts barking, we react too, at least temporarily.”

Ramesh: “So today’s fall was just Bruno barking with the stray dogs?”

Everyone chuckles again.

Vaidy: “Spot on. The noise outside was loud, so our market joined the chorus. But once things settle globally, we’ll go back to following our own fundamentals,  earnings, growth, inflation here, policies here.”

Aditya: “So what should investors do during this barking phase? Panic? Sell? Hide under the bed?”

CA Srini: “None of the above. If you know your portfolio well, why you’re invested, what your time horizon is, then you just keep walking. Let the market bark for a bit. It’ll calm down.”

Vaidy: “That’s the key. The world will always throw noise at us. But disciplined investors don’t react to every sound. They hold the leash tight and focus on their long-term goal.”

Ramesh nods thoughtfully.

Ramesh: “Makes sense. The barking cannot be eliminated, but panic can.”

Vaidy: “Exactly. And that right there is the mindset that makes long-term investors win.”

The screens continued flashing red, but the room felt a lot calmer.

About the Author

How Private and Public Sector Banks Balance India’s Financial System

At the conference table of Bharadhwaj Investsmart

The team had just wrapped up a morning client review when the conversation casually drifted toward banking preferences.

Jagruti leaned back in her chair. “Clients keep asking which banks to route their investments through. Personally, I feel private sector banks have the upper hand,  faster decisions, better apps, smooth customer service.”

Sunil smiled knowingly. “True, but that’s only one side of the story. Public sector banks exist to serve the broader public. They’re not chasing shareholders or profits -  they’re focused on financial access for everyone.”

Manoj, grabbing a coffee mug, added, “You have to admit, the profit motive drives private banks to innovate. They’re constantly competing, updating systems, adding new services. They keep you on your toes.”

Prajakta nodded but countered softly, “They innovate because they take more risks. Public banks are more cautious because they’re handling public money. Maybe decision-making is slower, but stability is critical too.”

Pooja jumped in from her laptop screen, “And when the markets shift, private banks don’t wait for five signatures and three file approvals. They change strategy overnight.”

Dhawal laughed. “Sure, that strategy can also go wrong overnight! Public banks don’t gamble. Their conservative approach has protected millions of depositors in tough phases.”

Neha, the intern, who had been taking notes for something else, finally spoke up. “So… private banks seem to focus on premium service and profitability, and public banks focus on inclusion and safety?”

Everyone paused and nodded. That seemed to capture it neatly.

Vaidy sums up

Vaidy, who had been listening quietly, finally weighed in.

“Look, both are necessary. Private banks give us efficiency, innovation, and a better customer interface, they’re ideal when clients want premium services or faster turnaround. Public sector banks, on the other hand, represent financial trust and inclusivity, they serve every citizen, not only the profitable ones.”

He continued, “The banking ecosystem works because both types balance each other. One pushes the system forward, the other holds the system steady. For our clients, the right choice simply depends on their objective, convenience and speed, or security and reach.”

He closed his diary and smiled, “In finance, there is rarely a single winner, there’s just the right fit.”

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The Credit Card - Friend or Financial Frenemy

 

The Credit Card: A Double-Edged Sword in the Financial Arsenal

At the Office of Bharadhwaj Investsmart

The late afternoon sun filtered through the blinds at Bharadhwaj Investsmart as Vaidy wrapped up his paperwork. Just then, Rohan walked in with an excited look.

“Chita, my friend Sharan just got his first proper job in a travel and tourism company. They’ve already offered him a credit card. He wants to understand whether it’s really useful or risky. Can you talk to him?”

Vaidy nodded and dialled the number. “Hello, Sharan? Welcome to the corporate world! I hear you’ve been offered a credit card.”

“Yes, sir,” came the eager reply. “Everyone at the office says it’s amazing, rewards, cashbacks, and super convenience. But a few friends warned me it can trap you in debt. I’m confused.”

Vaidy leaned back in his chair. “Think of a credit card as a sharp knife. In skilled hands it’s useful, but careless handling can be dangerous. Let’s look at both sides.”

He continued, “First, the good part. Credit cards make life convenient - no bulky cash, smooth online payments, and you get reward points or cashbacks. More importantly, using it responsibly builds your credit score, and that will matter when you want a housing loan or car loan later. Many cards also offer purchase protection, so there’s security when something goes wrong with a purchase.”

“That sounds perfect,” Sharan said.

“It does until you look at the shadow side,” Vaidy cautioned. “Credit cards carry high interest rates. If you don’t repay the full amount every month, the interest snowballs. And people fall into the minimum-payment trap without realising it. Add to that late fees, annual charges, and foreign transaction costs. Worst of all, swiping a card feels painless, so overspending becomes easy. Many youngsters get trapped before they even realise it.”

There was silence on the call for a moment. “So how do I use it correctly?” Sharan finally asked.

“Simple rules,” Vaidy replied. “Choose a card that suits your spending pattern, not what the bank pushes. Track every swipe and pay the full bill every single month. Never rely on minimum payment. And whenever you feel like buying something impulsively, pause and ask whether it fits your budget and goals. A credit card must work for you, not control you.”

“That makes complete sense, sir,” Sharan said with relief.

Vaidy smiled. “Remember, a credit card isn’t emergency money. It’s a tool to complement financial discipline. If you respect it, it’ll reward you. If you take it lightly, it can drain you.”

As the call ended, Rohan grinned. “Chita, I think you just saved another youngster from the debt trap.”

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From ₹10,000 to Transformation Why Microfinance Works

 

Microfinance and the Power of Small Loans

The mid-morning calm in S&Co is broken only by the soft hum of the ceiling fan. A young woman in her late twenties, carrying a folder of notes and ideas, is seated across from CA Srini.

Entrepreneur: “Sir, I’ve been working with rural communities for a while now, and I want to start something meaningful, maybe a small finance initiative for micro-businesses. But honestly, I don’t know where to begin. What exactly is microfinance?”

CA Srini: “Microfinance is actually one of the most transformative ideas in financial history. Think of it as giving access to money, small amounts, to people who are usually ignored by traditional banks. We call these microloans.”

Entrepreneur: “So these are loans for tiny businesses?”

CA Srini: “Yes. A woman who wants to buy a sewing machine, a vegetable vendor who needs a small cart, a farmer who needs seeds, small ticket requirements, but life-changing support. The objective is financial inclusion, making sure even the poorest have access to savings, credit, and sometimes insurance.”

The entrepreneur scribbles notes rapidly.

Entrepreneur: “Where did this model really begin?”

CA Srini: “The pioneer was Muhammad Yunus - the Grameen Bank in Bangladesh in the 1970s. His focus was lending to poor women. The results were powerful, not just income growth, but empowerment. That model got replicated worldwide.”

Entrepreneur: “And microfinance today, is it still the same?”

CA Srini: “The core philosophy is the same, but technology has made it more scalable. Mobile banking, digital wallets, and automated repayment tracking have helped microfinance reach remote geographies without the need for big physical infrastructure.”

A brief pause. The entrepreneur looks thoughtful.

Entrepreneur: “I’ve also heard criticisms… like high interest rates?”

CA Srini: “Valid point. Sustainability and social responsibility need balance. Microfinance institutions need funds to operate, but if interest rates are too high, it hurts the very people they want to help. Ethical frameworks matter.”

Entrepreneur: “But does it truly change lives?”

CA Srini: “Absolutely. I’ve seen entrepreneurs who began with a ₹10,000 loan and later employed ten people. When one borrower repays, the loan rotates to the next, that cycle sustains the ecosystem. Add savings habits to it, and you build financial resilience.”

The entrepreneur leans back, energized.

Entrepreneur: “It’s amazing… So microfinance isn’t charity, it’s empowerment with responsibility.”

CA Srini (smiling): “Exactly. Give people a chance, not sympathy, and you’ll be surprised how far they go.”

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