THE ECONOMIC TIMES

“Why you should go for Passive Funds ?” – 13 May 2013. 

Vishal Dhawan on investing in Passive Funds :

“The significant alpha that fund managers used to generate in the past is becoming harder to achieve. It is difficult to tell whether this is a long- or short-term trend. However, investors need to hedge their bets by including passive funds in their portfolios.”

“The tracking error is a much more significant criterion in selecting a passive fund. If it is low, it allows one to select passive funds whose returns are predictably close to the returns of the benchmark. It is such predictability that one seeks in a passive fund.”

 

BUSINESS STANDARD

“Why timing the Market can hurt ?” – 2 June 2013. 

Vishal Dhawan on sticking to your goal-linked Financial Plan when playing active is very tempting :

“Ideally, an investment decision is a factor of an investor’s risk profile, time horizon and financial goals. It is these three elements that determine the asset allocation an investor needs to follow. Always invest your overall assets appropriately across different asset classes to reduce the risks and earn more predictable returns.”

For risk-takers, Vishal suggests experimenting on a minuscule part of the portfolio. “For instance, if you have invested 50 per cent in equities, you could take risk on up to five per cent of the portfolio. But, not everyone has the expertise and knowledge to do the same. This is especially not advisable to do with the goal-linked part of the portfolio or your future plans could be impacted negatively.”

 

ECONOMIC TIMES WEALTH

Life after a poor pay hike – 28 May 2013. 

Vishal Dhawan on Flat Increments :

“Even if you keep your lifestyle constant, the consumer price inflation at around 10% ensures that your savings go down.”

Make your money work for you – “Instead of keeping funds (idle) in a savings bank account, invest in short term bond funds or fixed deposits, to optimise returns.”

 

MINT

‘Got a hike? How you use it depends on what you get.’ – 08 May 2013. 

Vishal Dhawan on what you should you do after getting a hike & its extent :

Below 7% hike: “In such a scenario, you will have to cut down on discretionary expenses as tough times are ahead.”

“Spending towards skill development will be essential though this may not be the solution for all.”

Above 15% raise: “Considering that you will have the urge to spend, you will have to be aware of mental accounting.” (Mental accounting is the tendency to separate money into separate accounts based on the source and use of the money. For example, investors are likely to spend less carefully with bonuses than with monthly salaries, even though bonuses may be built into their overall agreed compensation.)

No raise: “Your expense should be focussed on improving your skill and looking for ways of improving your income.”