IndiaP2P Blog

We must have all come across the term diversification at least once by now. Doesn’t matter if we invest in the stock market or not, the term has been fairly used for quite a while, across multiple mediums. But what does diversification in financial terms really mean? To describe it in simple terms, diversification refers to the practice of spreading out one’s investments in order to limit the exposure to a specific type of asset. This concept helps in reducing the volatility and overcome the fluctuations that are common in the stock market. Importance of Diversification Diversification acts as the ultimate safeguard against the risk of a single investment bucket performing poorly or failing completely. For instance, if you had invested all your hard earned money in the stock market, then there are chances that you might lose out on your empteen capital due to the stock market crash. Now when you diversify your investments across multiple asset classes, some might fall...

Owning real estate could be a huge step towards financial independence for many Indians.But to consider it a better investment than putting money in the financial markets may be short-sighted. The income generating property narrative starts to make sense when many investors end up renting their house instead of selling it i.e. purchasing an income property to imitate their parent’s past decisions, or buying a rental unit because they weren’t sure what else to do with their money. The misconceptions in the real estate industry being deeply rooted in the minds of the investors might prevent them from making a financially sound decision as they tend to ignore the potential risks. This article covers the actual facts and fictions of the real estate industry to avoid being saddled up in the future with an illiquid investment.Land prices will always continue to rise is just an assumption The ever-increasing population of the world gives credence to the myth of continuous...

We often hear the term budget or budgeting in the context of corporations, projects, governments, and even creative endeavours. It is an essential planning activity that tries to ensure that we don’t run out of resources to survive and achieve our goals.     Budgeting is just as important in your personal life. Most of us ‘budget’ our spending and expenses almost all the time but did you know that there are ‘budgeting strategies’ that you could use as useful mental frameworks?   First, let’s recap by saving and budgeting is important.   Savings help plan short-term goals: Savings goals need not only be long-term in nature. Instead, you should have short-term goals as well. Be it to purchase your much-awaited gadget or a long-pending trip, short-term saving targets shall help you accomplish your goals.   Answer to a better future: Savings is the key to unlocking a better future. Be it to purchase a...