Personal Finance: June 2025

A Bharadhwaj Investmart Story - Ram & Sujata’s Dilemma

Where Should You Park Your Money effectively for a short period?

A short story-based blog on Low Duration & Liquid Funds

It was a calm Tuesday afternoon at Bharadhwaj Investsmart, the sun casting a mellow glow through the office blinds. Ram and Sujata, a couple in their late forties, had just settled into the soft leather chairs across the desk of Vaidy, the firm's founder and chief advisor.

“Vaidy Sir,” Ram began, adjusting his glasses, “we’ve got a sizeable bonus this year, and we don’t need the money immediately. But we also don’t want it lying idle in the savings account. What's the best place to park it temporarily?”

Vaidy smiled, “Great question. Let me walk you through two of the most useful but often misunderstood investment tools for exactly this situation - Liquid Funds and Low Duration Funds.”

Sujata leaned forward, curious. “Aren’t both of them mutual funds that invest in debt? How are they different?”

“You’re absolutely right,” Vaidy nodded. “They are both debt-oriented mutual funds - but with different personalities.”

He drew a quick chart on his whiteboard.

“Think of Liquid Funds as the closest alternative to your savings account - but with a bit more return potential. These funds invest in very short-term instruments, like treasury bills or commercial papers, typically maturing within 91 days. Because of this, they carry minimal risk and offer easy access to your money - usually within a day.”

Ram raised an eyebrow, “Sounds good. And low duration funds?”

“Ah, now that’s the more adventurous cousin,” Vaidy said, chuckling. “Low Duration Funds invest in debt securities with an average duration of 6 to 12 months. So, they aren’t as liquid as liquid funds, but they offer slightly better returns, assuming you don’t need the money immediately and are okay with a little more risk due to possible interest rate changes.”

Sujata tapped her pen thoughtfully. “So, if we plan to use this money in, say, 9 -12 months for a vacation or school fees, would low duration be better?”

“Exactly,” said Vaidy. “You’re matching the investment duration with your need. That’s smart planning. If you wanted immediate access and didn’t want to risk even minor fluctuations, I’d say go with Liquid Funds. But for anything over 6 months and where you’re not anxious about daily movements, Low Duration Funds might edge out in returns.”

Ram nodded slowly. “And what about safety?”

“Both are relatively safe. But yes, liquid funds are ultra-conservative, while low duration funds come with a mild degree of interest rate sensitivity. Always align your choice with your time horizon and risk tolerance.”

Sujata smiled. “Thanks, Vaidy. That really simplified things.”

As they left with a better understanding - and a plan for their bonus - Vaidy leaned back, pleased. At Bharadhwaj Investsmart, it wasn’t about selling products - it was about giving clients clarity and confidence.

The content made available in this article is for general informational purposes only. While every effort has been made to ensure the accuracy and completeness of the content, it should not be considered as a substitute for professional consultation.

About the Author

Conversations at a CA Office - Tax Filing Errors to Steer Clear Of

Lessons on Tax Filing Mistakes

It was almost the end of June, and the office of S & Co., a well-respected mid-sized tax and audit firm, was buzzing with activity. With the tax return season in full swing, the team was knee-deep in ITRs, documents, and client calls.

At her usual desk, Jagruti, a senior staffer with more than 15 years of experience, was calmly working through a pile of files. Across from her sat Pooja, the dependable semi-senior with five years under her belt. Just then, Prajakta, the junior most walked in holding a return file and looking unsure.

“Hey Jagruti, quick question,” Prajakta began. “This client seems to have used the ITR-1 form, but he has rental income from two properties and some capital gains. Shouldn’t he be using something else?”

Jagruti raised her eyebrows. “Good catch, Prajakta. That’s a common mistake - filing the wrong ITR form.”

Pooja joined in, “People often assume ITR-1 is a one-size-fits-all. But each form is designed for specific profiles. The moment there's capital gains, multiple house properties, or business income, you move into different forms.”

“So in this case, it should be ITR-2?” Prajakta asked.

“Exactly,” said Jagruti. “And with the old and new tax regimes, things have only become more nuanced. For instance, someone choosing the new regime under Section 115BAC must tick the right box and ensure consistency with their deductions - or the lack of them.”

“Got it. Sounds like choosing the correct form is more important than I thought,” Prajakta said, taking notes.

Jagruti smiled. “You’re already thinking like a pro. But let’s rewind a bit. This was actually the third of the top three tax filing mistakes we see every year.”

“Right,” said Pooja. “The first one is the simplest but surprisingly common - entering incorrect personal details. Spelling errors in names, outdated addresses, or wrong bank account numbers can delay refunds and trigger unnecessary follow-ups.”

“What is the Best practice here?” Prajakta asked.

“Always match the name with the PAN card or with the latest 26AS,” Jagruti advised. “And verify current bank details before uploading.”

“The second big mistake,” Pooja continued, “is not reporting all sources of income. Most salaried people just upload their Form 16 and move on. But what about interest from savings accounts, fixed deposits, or mutual fund redemptions?”

Prajakta nodded. “We should always cross-check Form 26AS and AIS, right?”

“Exactly,” said Jagruti. “They’re like the department’s mirror. If something’s listed there and not in your return, it can raise red flags.”

“Are these the only issues we look out for?” Prajakta asked.

“Oh no,” chuckled Pooja. “There are plenty more mistakes - like forgetting to e-verify, not paying advance tax on time, or failing to carry forward losses. But these three are the most frequent.”

Prajakta grinned. “Thanks! Seems like tax filing is more about attention to detail than number crunching.”

“You’ve got that right,” Jagruti smiled. “Accuracy beats speed every time.”

About the Author

Behind Every Insurance Policy - Meet the Industry Players

A Story from the Advisor’s Office

It was Tabassum’s first day at Bharadhwaj Investsmart - her new workplace - a quaint yet respected financial advisory firm with a fair share of insurance business, run by Vaidy and ably assisted by Sunil, both veterans of the industry. Having had a brief stint with another financial advisory firm, she was excited but uncertain about how much she truly understood the workings of the insurance industry.

As she entered Vaidy’s cabin for the morning huddle meeting, she found Sunil placing three cups of coffee on the table. “Ah, Tabassum! Just in time,” he said with a warm smile. “Come, Vaidy sir was just about to give one of his legendary breakdowns of the insurance industry’s backbone.”

Vaidy, with his salt-and-pepper hair and decades of wisdom, looked up from a notepad. “Let’s begin. Tabassum, tell me - who do you think runs the insurance industry?”

She hesitated. “The insurance companies?”

“Correct,” Vaidy nodded. “They're the heart. We call them insurers. They collect premiums and pay for claims. But they don’t work alone. It’s an orchestra.”

“Like a team effort?” she asked.

“Exactly,” Sunil chimed in. “Take underwriters, for instance. They assess the risk behind every policy application. It’s like evaluating the safety of lending a friend your car.”

“So, they decide how much premium to charge?”

“Precisely,” said Vaidy. “Then you have agents and brokers - people like us. We’re the matchmakers. Brokers represent multiple companies and find the best fit for the client. Agents may be tied to one company, but both serve as the bridge between clients and insurers.”

Tabassum was scribbling fast.

“Now, once a policy is sold and a claim arises,” Sunil continued, “claims adjusters step in. They verify the damage, check documents, and determine the payout.”

“And reinsurers?” she asked, recalling the term from a webinar.

“Smart question,” said Vaidy, visibly impressed. “They’re the insurers’ insurers. If a company faces a massive claim - like during a natural disaster - reinsurers share the financial load.”

Sunil leaned forward. “And we can't forget the regulators. They ensure insurers follow the law, stay solvent, and treat customers fairly. Think of them as the referees.”

Tabassum paused. “It’s more layered than I thought. Where does life insurance differ from general insurance in all this?”

“Great point,” said Vaidy. “Life insurance covers human life - death benefits, pensions, retirement plans. General insurance, or non-life, deals with assets: health, vehicles, property, even travel.”

Sunil added, “In life insurance, the payout is certain - it’s a matter of ‘when,’ not ‘if.’ In general insurance, the risk might never materialize.”

“Wow,” Tabassum said, smiling. “I thought insurance was just selling policies. But it’s a whole ecosystem.”

Vaidy chuckled. “It is. And now, you’re part of the orchestra. Play your part well, and you’ll help people protect what matters most.”

She nodded. For the first time, she felt she wasn’t just in a job - she was stepping into a purpose.

About the Author

When shortcuts turn into costly mistakes - DIY Estate Planning

The Dangers of Do-It-Yourself

When shortcuts turn into costly mistakes

It was a rainy afternoon when four longtime friends - Dipin, Deepak, Digambar, and D’Souza - gathered at their usual coffee spot. The café had seen everything over the years: from career confessions to midlife musings. But today, Deepak had a troubled look on his face.

“What’s eating you, Deepak?” asked Digambar, sipping his cutting chai.

Deepak sighed. “It’s my cousin Anil. He passed away last month. He had tried doing his own estate planning using some online templates. Thought it was simple. Turns out it’s a total mess.”

“What happened?” D’Souza asked, leaning in.

“Well,” said Deepak, “he had drafted a will on his own, using a downloaded format. But he missed including his youngest daughter from the second marriage. The will hadn’t been updated in years, nor properly executed. Now the families are caught in a legal tangle. It’s heartbreaking.”

Dipin, the estate planner among them, nodded knowingly. “I’ve seen this too often. Estate planning isn’t a one-size-fits-all job. People underestimate the complexity, and DIY can do more harm than good.”

Digambar looked curious. “But what’s the big deal, Dipin? Isn't a will just a simple document saying who gets what?”

“I wish it were that simple,” Dipin replied. “Let me give you four key pitfalls people face with DIY estate plans.”

“First,” he continued, “people use generic templates that don’t reflect their unique family dynamics or asset structures. Anil’s case is a classic example - his template didn’t even include provisions for stepchildren or blended families.”

“Second, people forget that estate laws and tax regulations change. If you don’t stay updated, your plan becomes outdated. Professionals like me factor in both legal changes and your life changes.”

“Third, incorrect asset valuation can throw everything off. I’ve seen families fight because one sibling got undervalued property and another got stocks that later tanked. Valuations need to be done with precision.”

“And fourth,” Dipin said, “beneficiary nominations are often overlooked. People forget to update their insurance or PF nominations after life events like marriage, divorce, or births.”

Deepak nodded slowly. “Looking back, Anil’s intentions were noble, but he had no idea what he was missing.”

D’Souza added, “Even NGOs like mine need clear estate planning. We’ve had donors whose contributions were stuck in probate just because they didn’t consult a professional.”

There was a thoughtful silence.

Digambar broke it. “Dipin, I always thought estate planning was for the ultra-rich. But I realise now, with my business and joint properties, it’s high time I got serious.”

Deepak smiled. “Count me in too. I’ve learned the hard way from Anil’s case. It’s time we gave this the attention it deserves.”

Dipin chuckled. “Well, you know where to find me.”

And just like that, what began as a casual chat turned into a life-changing conversation. All three friends now saw the value of a well-crafted estate plan - done not by themselves, but by a trusted professional.

About the Author

How Shivanand Paid Off His Student Loan on a Low Income

Paying Off Student Loans

4 Smart Strategies That Work

Higher education is often the bridge between dreams and reality -but crossing that bridge can be expensive. Student loans make higher education possible for many, but they also bring along the challenge of repayment. In a busy tier-2 town, three friends -Sameer, Sudhakar, and Shivanand, graduate with student loans and step into the working world. Each comes from a very different background. But surprisingly, it’s Shivanand, the one with the least resources, who manages to pay off his loan first.

Meet the Friends

Sameer comes from a well-off family. His father owns a successful textile dealership. He took a student loan more for financial discipline, knowing that family support was always available.

Sudhakar comes from a stable middle-class home. His father teaches in a government school, and his mother contributes to the family income through a home-run tiffin service. Loan repayment is a shared family effort.

Shivanand was raised in a financially struggling household. His father works as a daily wage labourer, and his mother does domestic chores in nearby homes. His student loan was his only route to a better future, and he knew that failure to repay it wasn’t an option.

Though all three were equally good in their academics, Shivanand went the extra mile during college -researching scholarship opportunities, applying meticulously, and participating in competitive exams and aid programs. Thanks to his efforts, he secured a partial scholarship that covered a major portion of his tuition. This reduced his loan burden to a reasonable extent and made repayment more manageable after graduation.

After completing their studies, all three friends find jobs. While Sameer enjoys his lifestyle, and Sudhakar balances his expenses cautiously, it is Shivanand who makes the most remarkable progress, becoming debt-free in just a few years. Here’s how he did it.

1. Start Repaying While Studying

During college, Shivanand worked evenings tutoring school kids, freelancing online, and delivering food on weekends. Instead of waiting to graduate, he began paying off interest portions of his loan early, which reduced the total cost and prevented accumulation.

Lesson: Early action, even in small amounts, makes a big difference.

2. Live Below Your Means

While Sameer upgraded his gadgets and Sudhakar rented a modest single-room flat, Shivanand chose to share a small room with two others. He used public transport, cooked his meals, and avoided unnecessary expenses.

Lesson: Living simply early on can buy you financial freedom sooner.

3. Automate Loan Payments

Shivanand set up an automatic monthly EMI deduction the day his salary got credited. He treated it like rent, non-negotiable. This prevented missed payments and ensured that he never fell behind.

Lesson: Automation builds consistency and keeps you on track.

4. Use Bonuses & Side Income Strategically

When Shivanand received his first bonus, he resisted the urge to splurge. Instead, he made a lump-sum prepayment towards his loan. He also continued weekend freelancing, directing all extra income straight toward loan reduction.

Lesson: Channel every rupee of extra income to cut down your loan tenure.

Today, Sameer and Sudhakar are still working through their EMIs. Shivanand, however, is debt-free and saving aggressively for his next big milestone, buying a modest home for his family.

To sum up, student loans don’t need to weigh you down for years. With focus, early planning, and smart choices, you can clear your debt faster than expected, no matter where you start from.

About the Author

Three Friends and the Missing Piece - Financial Literacy

Tea, Talk, and the Truth About Money

It was a lazy Friday afternoon - a bonus bank holiday towards the end of the week, when three college friends - Priya, Jayashree, and Krishna - met after nearly a year at Priya’s cozy apartment for chai and snacks. The laughter was warm, the samosas crisp, and the mood nostalgic.

As they settled into their second round of tea, the conversation turned serious.

Jayashree, an architect with a thriving practice, sighed, “I’m great with designing spaces, but when it comes to money - I’m just guessing my way through. I’m earning well, but I’m not sure where it’s all going.”

Krishna, a senior software engineer at a reputed firm, nodded in agreement. “Same here. I automate systems worth crores, but when it comes to managing my salary or planning for retirement, I just leave everything in my savings account. I know I should be doing more... just don’t know where to begin.”

Priya smiled knowingly. As a personal finance professional (PFP), she had seen this pattern in so many families - high earners but low planners.

“You both are not alone,” Priya said gently. “Most of us were never taught how to manage money. Financial literacy is not just about investing in mutual funds or buying insurance. It's about being aware of how to make your money work for you.”

Jayashree raised her eyebrow, “So what should we start with?”

“First, budgeting,” Priya began. “Knowing where your money is going gives you control. It's not about restrictions - it's about awareness. Once you track your spending, you'll be surprised how much can be saved or redirected.”

Krishna chimed in, “Okay, budgeting sounds doable. But what about saving and investing?”

“Exactly the next step,” Priya replied. “Start with building an emergency fund, and then move to investing early. The power of compounding is magical. Even small SIPs done consistently over time can grow into something substantial. You can’t afford to wait until you ‘have more money’ - time is more valuable than money when investing.”

“And loans?” Jayashree asked, “I’m still paying off my home loan.”

“That brings me to another aspect - understanding debt,” Priya said. “Debt isn’t always bad. A home loan can be a smart move. But high-interest loans like credit cards? Dangerous if not controlled. Financial literacy helps you distinguish good debt from bad.”

Krishna leaned back, looking thoughtful. “You know, I always thought I needed to earn more. But it seems I need to manage better.”

Jayashree smiled. “Priya, I think you’re not just helping families reach their goals - you’re literally changing lives. I wish I had talked to you earlier.”

Priya laughed. “It’s never too late. That’s why I started this journey - to spread financial awareness. Once you understand money, it stops controlling you.”

They sipped their tea in silence for a moment, letting the truth sink in.

Jayashree finally said, “Looks like I need a trusted financial advisor.”

Krishna nodded, “Luckily, we have one right here.”

About the Author

Why ₹1 Today Is Worth More Than ₹1 Tomorrow

Time Value of Money

Why ₹1 Today Is Worth More Than ₹1 Tomorrow

In a world where everything is moving faster - work, life, expenses- it’s easy to overlook the quiet force that shapes our financial future: the Time Value of Money (TVM). At its core, TVM is a simple yet powerful idea, money available today is worth more than the same amount tomorrow, because it can be invested, earn returns, and grow over time.

Let’s explore this idea through the lens of three individuals, each in a different life stage, living in the dynamic buzz of a metro city.

1. In Your 20s: Starting Early is a Superpower

Meet Kaustab, 24, a software engineer in his first job. He’s tempted to spend freely but chooses to start a SIP of ₹10,000/month. His friends think it’s too early to “worry about investments.” But Kaustab understands that even modest investments made early grow significantly over time due to compounding.

By the time Kaustab is 45, assuming an 10% annual return, his monthly SIP could become over ₹80 lakhs. If he had waited till 35 to start, even a SIP of ₹30,000 per month would have grown to only ₹60 lakhs by age 45. That’s the time value of money at work, it rewards those who start early.

2. In Your 30s: Balancing Dreams and Discipline

Sneha, 33, is juggling a demanding career and her child’s school admission. She wants to plan for a foreign vacation and her child’s education. She starts investing in a mix of short-term deposits and equity mutual funds.

TVM teaches her an important lesson-delayed investments reduce your future options. By prioritizing regular investing now, Sneha ensures her future dreams aren’t left to luck or last-minute loans. TVM helps her value every rupee she invests today, knowing it has the power to multiply.

3. In Your 40s: Planning for Retirement, Not Just Today

Amit, 45, earns well and has some savings. But most are lying in his savings account earning minimal interest. Realising that inflation silently erodes purchasing power, he moves funds into higher-yield fixed income and hybrid funds.

Here, TVM shows another angle, not just about earning more, but preserving value. If inflation is 6%, your money must grow at least that much just to stand still in real terms.

Five Key Takeaways on Time Value of Money

Inflation is the silent thief – ₹100 today won’t buy the same things 10 years later.

Start investing early – Time is the biggest multiplier of wealth.

Compounding works best with time – The earlier you invest, the greater the impact.

Idle money loses value – Money in low-interest accounts often fails to beat inflation.

TVM works in borrowing too – Loans cost more over time; plan EMI decisions with this lens.

To sum up, understanding the Time Value of Money is like putting on financial glasses, you start seeing every rupee as a seed. The earlier you plant it, the more likely it is to grow into a strong tree. Whether you're just starting out or looking to secure your retirement, TVM is your invisible but sure shot financial ally.

About the Author

The Ring, The Car, The Book: What We Own & Why

Do We Own Things—Or Do They Own Us?

It was a quiet Sunday afternoon in the verandah of the ancestral home. The rustling leaves, distant temple bells, and the aroma of fresh pakoras filled the air. Seated in finely polished antique chairs were Grandpa Hari, his son Rajiv, and Rajiv’s daughter, Sambhavi.

Sambhavi, twirling her cup of tea, asked, “Dadu, what’s the one thing you own that means the most to you?”

Grandpa smiled. “Your grandmother’s wedding ring. I gave it to her on our first Diwali together. It’s not about gold or value, it’s about memories. Ownership, to me, is emotional. I own it not just to keep it safe, but because it carries our story.”

Rajiv nodded. “That’s true, Papa. But don’t you think ownership has changed over time? For me, it’s more about utility. I own a car because it makes life easier. I bought a house not just for shelter, but so we’d have a stable place to call our own. It’s functional, practical, even necessary.”

Sambhavi chimed in, “Interesting! For me, ownership is more about identity. The books I collect, the clothes I wear, they say something about who I am. Even the phone I use, it’s like an extension of my personality. I don’t just own things; I choose them because they represent me.”

Grandpa laughed. “Aha! So it’s about expression now. That’s new. In my day, we kept things for decades. Now people change phones every year!”

Rajiv leaned back. “True, but don’t you feel we sometimes go overboard? We keep buying, upgrading, owning more than we need. It can get stressful too - maintaining, securing, insuring…”

Sambhavi added thoughtfully, “And it clutters our minds. Sometimes I wonder if we own things or if they start owning us. Like my friend who bought a fancy camera but never uses it. She just liked the idea of having it.”

“Then there’s the environmental angle too,” Rajiv said. “Owning less and sharing more - cars, clothes, even homes - is becoming popular now.”

Grandpa nodded slowly. “Maybe the answer lies somewhere in between. We need some things. We want others. And some, like this ring,” he said, taking it out from his pocket, “we simply cherish.”

A gentle breeze passed through, carrying with it a shared silence.

Sambhavi finally said, “Maybe what matters is not how much we own, but why. Whether it’s for comfort, purpose, identity, or memory -if we’re conscious about our reasons, we’ll value things more.”

“And perhaps,” Grandpa added, “we’ll learn to value each other more too.”

About the Author

Work Choice - Employed Vs Self Employed

Freedom or Stability?

It was a Saturday morning, and the corner café buzzed softly with life. Rashmi and Sofia, friends since college, were finally catching up after months. As they sipped their cappuccinos, the conversation drifted-naturally-to work.

“So,” Sofia began, stirring her coffee, “how’s the consulting gig going, Madam Entrepreneur?”

Rashmi smiled, “Busy but liberating. I decide who I work with, how I work, and when. There’s a certain thrill in calling the shots.”

“Must be nice,” Sofia sighed. “I mean, I like my job too-predictable hours, steady pay, and health benefits. But sometimes, I wonder what it would be like to work for myself.”

“That’s the first big difference,” Rashmi said. “As an employee, you know exactly what you’ll earn at the end of the month. It’s comforting. For someone self-employed like me, income can be... unpredictable. Last month was great, this month-less so.”

Sofia nodded, “True. I like the consistency. Rent, EMIs-it all needs a routine income.”

“But that routine,” Rashmi said, “can feel limiting. You follow someone else's vision. Sometimes I felt like a cog in a giant machine.”

Sofia raised an eyebrow, “Whereas you get to build the machine?”

“Exactly,” Rashmi laughed. “But let’s be honest-building it is no cakewalk. You handle everything-from finding clients to sending invoices to filing taxes. There’s no HR to call when things go wrong.”

“Sounds overwhelming,” Sofia said. “I admit, I enjoy the structure. I work from 9 to 6, then shut the laptop and focus on my life. Doesn’t it ever feel like your work never ends?”

Rashmi paused. “It does. Boundaries can blur. Sometimes, I catch myself answering emails at midnight. You have to be very disciplined to protect your personal time.”

Sofia leaned back. “You know, I never thought of it that way. I often envy your freedom, but I realize now it comes with responsibilities I might not be ready for.”

“And I admire the stability you have,” Rashmi said. “There are times I miss working with a team, brainstorming, laughing during lunch breaks. Being on your own can get lonely.”

“Maybe it’s not about which is better,” Sofia said thoughtfully. “It’s about which suits your personality and stage of life.”

Rashmi nodded. “Exactly. Some people thrive in a structured environment, others bloom when they have space to experiment. And who knows-there’s no rule saying we can’t switch paths later.”

They clinked coffee mugs.

“Here’s to choices,” Sofia said.

“And to making them wisely,” Rashmi smiled.

To sum up, both employment and self-employment have unique rewards and challenges. Whether you value structure or freedom, stability or independence-understanding yourself is the first step to choosing the right path.

About the Author

Home Loan in Reverse Gear

A conversation between two friends

It was a slow, balmy afternoon, and the community park was its usual peaceful self. On the same bench as every Tuesday, sat two long-time friends - Mr. Inder and Mr. Ramesh - both retired, both comfortably grey, and both unusually curious about financial trends.

“Ramesh,” Inder began, “have you heard of this thing called a reverse mortgage?”

Ramesh looked up from his newspaper, amused. “Of course. That’s where the bank pays you instead of the other way around. Sounds too good to be true, doesn’t it?”

Inder chuckled. “That’s what I thought too. I mean, imagine - you’ve worked your whole life, bought a house, and now they say the house can pay you back.”

“Yes,” Ramesh nodded. “The concept is simple. If you own your home - no loans, no EMIs - the bank gives you money either as a lump sum, monthly payments, or a credit line. But it’s not charity. It’s a loan - and the interest keeps piling up silently in the background.”

“Exactly,” Inder said, leaning in. “And the interest is not paid every month. It just gets added to the loan balance, which keeps growing. The longer you live, the more you owe. When you pass away or move out permanently, the house is sold to repay the loan. Whatever’s left, if anything, goes to your heirs.”

Ramesh sighed. “That’s where I get uncomfortable. Our generation values leaving something behind. This scheme slowly eats into the value of your biggest asset. You live in your home, yes, but by the end, there’s not much left for your children.”

“True,” Inder agreed. “And don’t forget the hefty costs. High upfront processing fees, insurance, servicing charges... it’s not as light as it sounds. And the worst part? Even with this setup, you still have to keep paying property taxes and maintain the home. Miss any of that, and the bank can foreclose.”

“That’s the irony, isn’t it?” Ramesh mused. “They tell you it’s a way to secure your old age. But you miss a tax payment or skip the paint job, and boom - you risk losing the very roof over your head.”

Inder gave a small laugh. “What’s funnier? The scheme has been around for years, but barely anyone takes it. Banks are reluctant to promote it. People don’t fully trust it. It just… floats around like an unused tool in the attic.”

“Maybe it’s because it goes against what we were taught,” Ramesh replied thoughtfully. “We were raised to own our homes, not mortgage them in our final years.”

They sat in silence for a moment, watching a young couple push a stroller down the path.

“Still,” Inder said, breaking the quiet, “for someone with no savings, no family, and a house - this could be a lifeline.”

“Yes,” Ramesh agreed, “but for most of us, it’s a last resort, not a go-to plan.”

They nodded in unison, old men at peace with their choices, content to let their homes remain what they had always been - places of shelter, not silent lenders.

To sum up, reverse mortgages may sound appealing but come with strings attached. Though available, they remain largely unpopular - both among financial institutions and retirees.

About the Author

Diversify, But Don’t Overdo It

A Coffee Table Conversation - Disadvantages of Diversification

It was a relaxed Sunday evening. Four cousins - Aditya, Priya, Ria, and Rohan -had reunited after months. Over coffee and laughter, the conversation drifted from old memories to new-age investments.

“You guys won’t believe how many stocks I hold now,” Rohan said, proudly sipping his cappuccino. “Last count - 52!”

“Whoa,” Ria raised an eyebrow. “Are you running a mutual fund or what?”

They laughed, but Aditya leaned in. “Rohan, that sounds like over-diversification to me. You might want to rethink it.”

“Wait, I thought diversification reduces risk?” Rohan asked, confused.

Priya nodded, “It does - but only to a point. Go beyond that, and it starts working against you.”

“How so?” Rohan asked. And so began a mini masterclass.

1. Diluted Investment Quality

“Think of it this way,” Aditya explained. “There are only so many genuinely great companies out there. If you own too many stocks, you’ll inevitably include mediocre or poor-quality ones. That dilutes the impact of your best picks.”

Rohan frowned. “Makes sense. I did buy some stocks just to ‘fill out’ sectors.”

2. Portfolio Becomes Unmanageable

Ria jumped in. “And with so many holdings, can you really track them all? News updates, earnings reports, business changes... it's exhausting. A bloated portfolio often means less control and more stress.”

Rohan chuckled nervously. “I’ve definitely lost track of some of them.”

3. You May Just Be Mimicking the Index

“Here’s the ironic part,” Priya added. “If you’re spread too wide, you might as well have bought an index fund. But you’re paying way more in brokerage or fund fees and putting in more effort. It’s like paying extra to manually replicate what a single fund could do.”

“That stings a bit,” Rohan admitted.

4. Subpar Returns

“And let’s talk returns,” Ria said. “If you mix high-quality stocks with weak ones, your overall performance suffers. It’s like mixing gourmet coffee with instant powder -you ruin the flavor.”

“Not to mention the emotional side,” Aditya added. “When markets fall, people panic. With too many investments, it’s harder to know what to sell or hold. So they sell the winners and hold the losers - classic mistake.”

5. Lack of Personal Oversight

Priya nodded. “And if you rely too much on mutual funds or managers, you stop paying attention. One bad quarter, one shift in market trend -and you’re the last to react.”

Rohan leaned back, thoughtful. “So you’re saying - less is more?”

“Not zero diversification,” Ria clarified. “Just strategic diversification. Hold enough to manage risk, but not so much that it becomes clutter.”

“There are several other downsides,” Aditya added, “but these are enough to rethink our approach.”

As the coffee cooled and laughter resumed, Rohan made a mental note to review his portfolio that night.

About the Author

“Sabbatical? Is That Like Sick Leave for Grown-Ups?”

It was a lazy Sunday afternoon, and Aditi was trying (and failing) to do yoga in the living room. Every downward drop was interrupted by a small, curious head popping into view.

“Mumma,” Aarav asked, balancing a cricket bat on his shoulder, “are you unemployed now?”

Aditi nearly toppled over.

“What?! No! Why would you think that?”

“Because Papa said you’re on a ‘sabbatical.’ Sounds serious. Like a disease. Do you need medicine?”

Aditi burst out laughing, straightened up, and flopped on the sofa. “No, beta. Sabbatical isn’t a sickness. It’s... a break. A long, planned break from work.”

Aarav plopped beside her. “So, like summer holidays, but for adults?”

“Pretty much,” she nodded. “Except we don’t get mangoes and ice-cream with it automatically. We have to fight HR policies instead.”

Aarav tilted his head. “But why would you want to take a break? You were just made VP of something-something. That sounds important!”

“Vice President of Strategic Business Initiatives,” Aditi corrected with mock pride. “And yes, it sounds important - until you realise it means replying to emails at midnight and forgetting what sleep feels like.”

Aarav gave her a look. “So basically, you're on leave because your brain got tired?”

Aditi gasped. “My brain did not get tired. It got... slightly crispy around the edges. Like an over-fried samosa. Still good, but not the best version of itself.”

Aarav giggled. “So what do you do on a sabbatical? Watch TV all day and eat chips?”

“I mean… that was the plan,” Aditi admitted sheepishly. “But now I’m reading books, learning to cook edible food, and- believe it or not - organising the spice cabinet. Did you know we had three bottles of cinnamon?”

“Did you know I thought cinnamon was a Pokémon until last week?”

They both laughed.

Aditi continued, “Honestly, sabbaticals are becoming more common these days. People realise that working non-stop isn’t sustainable. Taking a break helps you think, reset, even explore other things- like starting a blog, or teaching, or becoming a part-time stand-up comedian.”

“You?” Aarav said, eyes wide. “Stand-up? You can’t even tell a knock-knock joke without Googling it!”

Aditi raised an eyebrow. “Well, I could try. Want to hear one?”

“No,” he said quickly. “So when do you go back to office?”

“In a few months,” Aditi said. “But I’ll be going back with new energy. And hopefully fewer unread emails.”

“So sabbatical is like charging your phone. When the battery hits 1%, you plug it in before it dies?”

“Exactly! And if you don’t… well, you start yelling at the microwave and forgetting your own passwords.”

Aarav nodded sagely. “I get it now. You’re rebooting. Like my PS5 after it freezes.”

“Yup,” she smiled. “Exactly like that.”

Pause.

“So... can I take a sabbatical from homework?”

Aditi narrowed her eyes. “Nice try. You can take a snack break, that’s about it.”

About the Author

A Cup of Tea and a Glint of Gold

It was a calm Sunday afternoon. Rain drizzled gently outside, and the aroma of ginger tea filled the living room. Grandma sat in her usual spot near the window, while her daughter Meera and teenage granddaughter Tara lounged on the sofa.

“Amma,” Meera began, handing Grandma a cup of tea, “Tara’s been reading up on investments lately - and she asked me a question I thought you’d enjoy answering.”

Tara smiled. “Yeah, I was wondering - we talk so much about gold during weddings and festivals, but is it really useful as an investment today?”

Grandma’s eyes twinkled. “Ah, you’ve grown up, my dear! That’s a wonderful question. Let me tell you a little story. When I got married, your grandfather gifted me gold bangles. In those days, it wasn’t just tradition - it was our emergency fund.”

Meera nodded. “Jewellery has always had sentimental value. But let’s be honest - it’s not always the best financial investment. Making charges, storage worries, and resale issues can be a downside.”

Tara leaned forward. “Exactly! I was reading about Sovereign Gold Bonds the other day. They're kind of cool - backed by the government, no need to store anything, and they even pay interest every year!”

“Very true,” said Grandma, impressed. “And you get the full gold price when you redeem them after maturity, without losing anything to jewellers’ deductions.”

“And there’s no capital gains tax if you hold them till maturity,” Tara added confidently.

Meera smiled, “Look at you! You know more than some adults I know. I’ve also been buying a few gold coins over the years. They’re small, easy to gift, and good for special occasions.”

“But isn’t that still physical gold?” Tara asked. “You need to store it securely, right?”

“Yes,” Meera admitted. “Which is why I also invest in Gold ETFs. You can buy and sell them just like stocks. No locker needed. And they reflect real-time gold prices.”

Tara chimed in, “And then there are Gold Mutual Funds - even easier for people who don’t have a demat account. The fund manager takes care of the investment part, and it’s ideal for regular monthly investing.”

Grandma sipped her tea thoughtfully. “It’s wonderful to see how gold has evolved. From bangles in a wedding trunk to digital bonds and funds on a smartphone - it’s still gold, but smarter.”

Meera added, “What I like is that gold holds value in uncertain times. Stocks may fall, but gold is like an anchor. It’s perfect for diversification.”

Tara nodded. “So, we’ve covered jewellery, Sovereign Gold Bonds, coins, ETFs, and mutual funds. I guess it depends on what suits a person’s lifestyle and risk comfort.”

Grandma smiled, “Exactly. And remember - we haven’t even touched on all the other options. But for any generation, gold remains something to trust.”

Tara grinned, “I always loved gold for how it looked. Now I like it even more for what it can do.”

About the Author