“Robin, I’ve been working for years now, but I still don’t get how my EPF works,” sighed Shyam as he glanced at his payslip over his morning chai.

Robin smiled. “You’re not alone, Shyam. Most people know money goes into EPF every month but have no idea what’s really happening inside. Let’s make it simple.”

The Basics: Who Puts in the Money?

“Every month,” Robin began, “your salary slip shows a deduction called EPF — Employees’ Provident Fund. That’s money you’re saving for your retirement. But the cool part is — your employer also puts in money for you!”

Here’s how it works:

You contribute 12% of your basic salary + dearness allowance.

Your employer contributes another 12%.

But there’s a twist! The employer’s 12% doesn’t all go to your EPF.

8.33% goes to your pension account (EPS) — but only on a salary up to ₹15,000 (so ₹1,250 max per month).

The rest 3.67% goes to your EPF.

“Think of it like splitting your pizza,” laughed Robin. “Most slices go into your EPF, but one small slice goes into your pension.”

So, if your basic salary is ₹30,000 —

You’ll contribute ₹3,600 every month.

Your employer contributes ₹3,600 — ₹1,250 to pension, ₹2,350 to EPF.

Changing Jobs? Don’t Leave Your EPF Behind

Shyam nodded. “That’s clear. But I’ve changed jobs twice and never transferred my old EPF accounts. Is that bad?”

Robin chuckled. “Not bad, but not ideal either. It’s like having multiple savings jars at home — money’s safe, but you forget about them!”

Your EPF account should ideally move with you wherever you work. The UAN (Universal Account Number) is your lifelong ID for EPF. When you change jobs, you can easily transfer your old account online.

If you don’t, after 36 months (3 years) of no deposits, the account becomes inactive — kind of like an old phone number you no longer use.

Does an Inactive EPF Still Earn Interest?

“Will my old EPF just sit there doing nothing?” Shyam asked.

“Not exactly,” said Robin. “The good news is — even if your account becomes inactive, it still earns interest till you turn 58, as long as you haven’t withdrawn the money.”

So even if you switched jobs and forgot to transfer your EPF, it’s still growing quietly in the background.

But here’s something important — once you turn 58 and stop working, your account becomes inoperative.
From that point, interest earned will be taxable — and the tax will apply from the time you stopped contributing.

Imagine it like your parked car — it still shines in the garage, but after retirement, the government wants a small “parking fee” on the interest it earns!

When Can You Withdraw Your EPF?

There are two main situations when you can withdraw:

1. At the Time of Retirement (Age 58)

Once you retire, you’re allowed to withdraw 100% of your EPF balance — your and your employer’s contributions plus all interest earned.
After retirement, your EPF account becomes inoperative, and although it continues to earn interest, that interest becomes taxable from the time you stopped contributing.
So it’s better to withdraw or transfer the amount soon after retirement.

2. After 2 Months of Continuous Unemployment

If you leave your job and remain unemployed for 2 continuous months, you can also withdraw your entire EPF balance.
You just need to self-certify unemployment while applying for withdrawal through the EPFO portal.

Make a Note: Earlier, EPFO allowed only 75% withdrawal after 1 month of unemployment and the remaining 25% after 2 months.
Now, you can withdraw the full balance after being unemployed for 2 months.

However, if you join a new job before those 2 months, you can’t withdraw — you’ll need to transfer your EPF to your new employer through your UAN.

Everyday Example

Let’s take Shyam’s example again.

He worked at Company A for 4 years, then moved to Company B for 3 years. But he never transferred his old EPF account.

His old Company A account became inactive after 36 months.

It still earned interest till he turned 58.

But if Shyam forgets to withdraw even after retiring, any interest earned after 58 will be taxable — from the time he stopped contributing.

Now imagine if he had transferred both accounts under his UAN — he’d have one active account growing smoothly, with no confusion or tax surprises later.

General Advice :- “Your EPF is like that neem tree you planted years ago,” Robin said, finishing his chai. “It quietly grows in the background, giving you shade when you retire. Just make sure you don’t forget which garden you planted it in.”

Shyam smiled. “Thanks, Robin. My chai’s cold, but my EPF doubts are cleared — and I’m finally going to check my balance today!”

Shreya: Riya, I’ve been hearing a lot about Specialized Investment Funds—SIFs. I’m thinking of putting in a lump sum. It sounds exciting and “different” from mutual funds.

Riya: That’s interesting, Shreya. But before you jump in, let’s break it down. Do you remember the time you thought about buying that treadmill during lockdown?

Shreya: Yes, I bought it, but honestly, it’s gathering dust now. I hardly use it.

Riya: Exactly. You invested money because it felt like a good idea at the time, but without the habit or system in place, it didn’t work out. SIFs can be like that—tempting but not always practical for everyone.

Shreya: Hmm, so they’re not like mutual funds?

Riya: Nope. Think of mutual funds as your family car—a safe hatchback or sedan. You can take it to work, on road trips, even the market run. Easy to maintain, reliable, and useful for most situations.

Shreya: And SIFs?

Riya: SIFs are like sports cars. High performance, flashy, can speed up quickly—but they need expert drivers. On Indian roads, if you don’t know how to handle one, you can land in trouble.

Shreya: Okay, but what makes them so different?

Riya: A few things:

1. Entry Ticket SIFs  – For mutual funds, you can start with ₹500. For SIFs, you need ₹10 lakh minimum. It’s like paying a huge annual membership at a luxury club—you can’t just “try it out.”

2. Flexibility for the Manager – In mutual funds, managers mostly buy and hold good companies. In SIFs, managers can also “short sell”—betting that a stock will go down—or use derivatives. Think of it like a cricket match: a normal mutual fund bats steadily to build runs. A SIF tries reverse sweeps, switch hits, and risky shots. If they connect, great! If not, they’re bowled out quickly.

3. Risk and Reward  – Because of these fancy moves, returns can be higher—but losses can also be bigger. Like your stock-market-savvy cousin who once doubled his money quickly but then lost half in a single crash.

4. Liquidity Rules – With MFs, you can withdraw part of your money anytime. But with SIFs, if your balance falls below ₹10 lakh, you must take all your money out. Like being in a luxury gym that won’t let you downgrade to a smaller package—you either stay premium or leave.

Shreya: Sounds like a lot of conditions! But wouldn’t professional managers handle this well?

Riya: True, but even professionals can go wrong. Remember those IPL teams who hire the most expensive players but still don’t make the playoffs? Strategy matters, but so does execution.

Shreya: Hmm… so who should even invest in SIFs?

Riya: Think of your financial life like a thali. The roti, dal, rice, sabzi—that’s your basic portfolio: equity mutual funds, debt funds, gold, emergency savings. That fills you up.

SIFs? They’re the dessert—a fancy gulab jamun or a cheesecake. Tasty, but not the main meal. And only if you’ve already eaten well.

Shreya: So if I’m just building my basics, I should stay away?

Riya: Absolutely. First cover your essentials—insurance, emergency fund, regular mutual funds. Once you’re financially stable and have surplus, you can allocate a small slice—maybe 5–10%—to SIFs if you want to experiment.

Shreya: Got it! So, SIFs are not bad, but they’re not meant for me right now.

Riya: Exactly. Like driving a Ferrari in Bangalore traffic—it’s possible, but not practical. Build your portfolio foundation first, then think of adding such “luxuries.”

Shreya: Thanks, Riya. You’ve saved me from rushing into something flashy but risky.

Riya: Anytime! Remember, wealth creation is like gardening. First plant the basics, water them regularly. Once you have a lush garden, then add exotic flowers.

It’s a familiar story. Salary gets credited at the start of the month, and for a few days we feel like kings and queens. By the 10th or 15th, we’re already waiting for the next payday. No matter how much we earn, money seems to slip away faster than we’d like.

Why does this happen? And more importantly, how do we break this cycle?

The Trap of Modern Lifestyle

Two big shifts have changed the way we spend money today:

1. Quick Commerce – Groceries, gadgets, and gourmet snacks delivered in 10 minutes. Convenience at a cost. The temptation is just one tap away.

2. Lifestyle Creep – With every salary hike, our expenses go up. A better phone, a fancier vacation, more dining out. We start living paycheck-to-paycheck even with higher incomes.

Everyday Situations That Drain Our Salary

If you look closely, the leakages are everywhere in our day-to-day lives:

The Daily Coffee Habit – That ₹200 latte may not feel like much, but at 20 days a month, it’s ₹4,000 gone without realizing.

Food Delivery Apps – A home-cooked meal might cost ₹100, but when ordered online, the same jumps to ₹300–₹400 with delivery and convenience fees.

Subscriptions Everywhere – Music, OTT, cloud storage, gym, e-learning – individually small, collectively they eat a chunk of your monthly budget.

“One-Day Sale” Traps – E-commerce notifications push us into buying things we don’t need, just because they’re discounted.

Impulse Electronics – That latest smartwatch, headphones, or phone upgrade often takes away the money that could have gone to investments.

These aren’t luxuries anymore; they’ve become “defaults” in our spending behavior. And that’s where the problem lies.

Mis-Selling: When Products Buy Us

On top of lifestyle choices, there’s another challenge. Salespeople from banks and financial institutions pitch products — insurance, ULIPs, credit cards — because they have targets to meet. We end up buying things we don’t fully understand.

They aren’t entirely wrong (it’s their job), but the problem is we don’t stop to ask: “Does this fit into my financial plan?”

What We Forget to Ask Ourselves

Every financial decision should begin with 3 questions:

1. Emergency Corpus – Do I have at least 6 months of expenses saved in liquid funds for emergencies?

2. Monthly Discipline – How much should I set aside each month before I start spending?

3. Retirement Plan – What’s my roadmap for life after work, when salary stops but expenses don’t?

Yet, most of us don’t pause to think about these basics.

Building the Right Money Habits

Here’s a simple framework:

1. Pay Yourself First – The moment salary hits, put aside at least 20–30% into savings/investments. Treat this as a non-negotiable “expense.”

2. Emergency First, Fancy Later – Before chasing high returns, build an emergency fund. This is your financial seatbelt.

3. Goal-Based Investing – Instead of buying random products, map out goals: child’s education, home purchase, retirement. Then pick the right instrument.

4. Budget Your Lifestyle – Use the 50-30-20 rule:

50% of income = needs (rent, EMI, groceries)

30% = wants (lifestyle, travel)

20% = savings & investments

5. Review Before You Buy – Before signing any financial product, ask:

Does this help my goals?

What are the costs/charges?

Is there a simpler alternative?

Why This Matters?

We often believe financial freedom comes with higher income. But the truth is, it comes from discipline, clarity, and planning. Without that, even a 7-figure salary can vanish in a fortnight.

Remember: Money is a tool. Either you control it, or it controls you.

Call to Action for Readers: – Starting this month. Before you make your next discretionary purchase, pause. Set aside for your emergency fund, review your retirement plan, and then spend. The peace of mind is worth far more than the latest gadget or instant indulgence.

One evening over tea, my friend Rajesh asked me a question that I’ve heard countless times:

“Why shouldn’t I buy a term plan till 75? Isn’t that when the risk of death is highest? Wouldn’t my family be more secure then?”

His tone was firm, almost challenging, as if I was missing something obvious. I smiled because I knew where this conversation was heading.

Scene 1 – Why Do We Buy Life Insurance?

I asked him gently, “Rajesh, tell me—why do you even need life insurance?”

He thought for a second and said, “Because if I die, my family will need money to survive.”

“Exactly,” I replied. “But think carefully—this need exists only as long as your family is financially dependent on you. If you’ve retired, your children are independent, and your spouse has the retirement corpus—what financial loss does your death cause? Emotional loss, yes. But financial? Not really.”

Rajesh sipped his tea, quiet now.

Scene 2 – The Retirement Factor

I continued, “By the time you hit 60, you’ll have bought your house, funded your kids’ education, maybe even married them off. Do you really think you’ll need a ₹1 crore cover at 70? Won’t your wealth by then be your real security?”

Rajesh raised his eyebrows. “But what if I live longer?”

“That’s exactly the point,” I said with a smile.

Scene 3 – The Insurer’s Game

I leaned forward. “Rajesh, remember this—insurance companies aren’t doing charity. They hire smart actuaries who calculate probabilities to the last decimal. If they let you buy a policy till 75, it’s because they know you’ll most likely survive till then. Which means—you’ll keep paying premiums faithfully, but chances are slim your family will ever get a payout.”

Rajesh chuckled, “So basically, the company is being smart—not me?”

“Bingo.”

Scene 4 – The Inflation Trap

“But wait,” Rajesh argued, “even if I die at 70, my family will still get ₹1 crore. That’s big money!”

I shook my head. “Not really. Think about inflation. Suppose you’re 40 now and you buy that policy. By the time you’re 70, with 7% inflation, that ₹1 crore will be worth just about ₹13.136 lakhs in today’s value. Do you see the trap? You’re paying premiums for decades, but the real value of that cover shrinks drastically over time.”

Rajesh sat back, stunned.

Scene 5 – The Bigger Picture

I concluded, “Rajesh, life insurance is not about squeezing maximum benefit. It’s about timely protection. You only need it until your retirement—your true working years. After that, your focus should be on building and preserving a solid retirement corpus. Beyond 60, keeping a term plan is like betting on your own death. And trust me, that’s not a bet worth making.”

Rajesh finally nodded, half laughing, half thinking deeply. “Looks like the insurance company isn’t the fool here—I would have been!”

I smiled. “Exactly. Act smart. Buy term insurance only for the years you truly need it. Beyond retirement, your wealth—not your policy—should take care of your family.”

Shyam: Rishi, I don’t get why people keep saying “buy your own health insurance”. My company already covers me and my family. Why should I pay extra?

Rishi: That’s a fair question, Shyam. But let’s look at it differently. Employer-provided insurance is like renting a house—it’s great while it lasts, but the moment you change jobs, retire, or your employer changes policy, the cover can vanish overnight.

Shyam: But as long as I’m working, I’ll be covered, right? Why complicate things?

Rishi: You’re right—till you’re employed, you’re covered. But imagine two situations:

1. You switch jobs and your new company doesn’t provide health cover immediately.

2. You retire at 60—when you’ll actually need health insurance the most—no employer will cover you then.

And that’s when buying a fresh policy becomes very expensive, or worse, you may be denied if you develop lifestyle diseases like diabetes, hypertension, or heart issues.

Shyam: Hmm… but right now I’m young and healthy. Won’t it be a waste to buy an extra policy?

Rishi: That’s exactly why you should buy it now. Health insurance premiums are lowest when you’re young. With every year you delay, the premium rises. For example:

At 25, a ₹5 lakh cover might cost you ₹6,000 a year.

At 35, the same cover could cost ₹12,000.

At 45, it might jump to ₹25,000 or more.

So the earlier you lock in, the cheaper it is over the long run.

Shyam: But I can still invest that money instead of paying for insurance. Isn’t that smarter?

Rishi: Not really. Because one hospitalization can wipe out years of savings. Suppose you’ve built a ₹5 lakh mutual fund portfolio, but a sudden medical emergency costs ₹7 lakh. If your employer cover only pays ₹3 lakh, you’ll need to dip into your investments for the rest. That derails your financial plan instantly.

Shyam: That sounds scary. But are medical costs really that high?

Rishi: Yes. Lifestyle diseases are rising fast in India. Young people in their 30s are being diagnosed with diabetes, cholesterol issues, and even cardiac problems. Hospital bills for these can easily cross ₹5–10 lakh, especially in metro cities. Without adequate personal insurance, the burden falls directly on your savings.

Shyam: So you’re saying my employer cover is good, but not enough?

Rishi: Exactly. Think of employer insurance as a bonus—it’s useful, but not something to depend on forever. Your own policy gives you continuity, independence, and peace of mind.

Shyam: Okay, I see your point. If I buy now, I not only get lower premiums but also secure my future before lifestyle issues hit. And if I delay, I’ll pay more and risk my investments.

Rishi: Spot on, Shyam. Health insurance isn’t just a cost—it’s protection for your wealth and your family’s future.

Becoming a parent is one of life’s greatest joys, but it also brings with it a new set of responsibilities. While sleepless nights and diaper changes take over in the early months, parents also begin to worry about the long-term financial security of their child. Unfortunately, many get trapped in traditional products like money-back policies, ULIPs, or bundled life insurance plans. These products feel “safe,” but they often deliver poor returns, leaving parents with far less than what’s truly possible. A smarter approach is to use the power of compounding to create a retirement corpus for your child, starting the day they are born, with just ₹5,000 a month.

Here’s how it works. Parents invest ₹5,000 per month in equity mutual funds in the child’s name for 18 years. By the time the child becomes an adult, the money grows into a corpus of around ₹31.8 lacs. At that point, the responsibility shifts. The child continues the exact same ₹5,000 monthly investment for another 37 years until they turn 55. That steady discipline grows into a retirement corpus of over ₹17.89 crore. Think about it: parents only contributed for the first 18 years, and yet they set in motion a plan that secures their child’s financial independence for life.

In real life, this approach is like planting a mango tree today. Parents water it for the first few years until it is strong enough to grow on its own. Once matured, the tree produces fruit year after year, long after the initial effort is over. Compare this to money-back policies or ULIPs, which are like planting a decorative plant—it looks safe, but it never really bears fruit in the way you expect.

Parents often underestimate how small sacrifices can lead to massive results. ₹5,000 a month is often spent on eating out at restaurants, paying for multiple OTT subscriptions, or impulse shopping on e-commerce sites. Redirecting just that amount into a SIP can secure your child’s financial life. Imagine telling your son or daughter at age 18: “This ₹31.8 lakh is not just money—it’s the foundation of your future. Keep adding to it, and you’ll never have to worry about retirement.” That conversation itself can be one of the best financial lessons you pass on.

To get started, parents need to open an investment account in the child’s name, with themselves as guardians until the child turns 18. Basic documentation like the child’s birth certificate and guardian KYC is needed. From there, the journey is simple: set up the SIP, stay disciplined, and educate your child when the time comes.

The truth is, the best financial gift you can give your child is not another toy, or even just a good education, but the quiet, consistent power of compounding. By starting this plan the day your child is born, you’re not only showing love today—you’re securing their freedom tomorrow.

“Papa, why do you keep talking about this PPF account? Isn’t it too old-fashioned?” asked Aarav, a young software engineer, while sipping his coffee.

His father, Mr. Sharma, smiled. “Son, sometimes the old ways are the best ways. Let me explain why a Public Provident Fund (PPF) account is like that simple, reliable friend who never lets you down.”

Safe and Steady – No Market Jitters

“Look at your mutual funds,” Papa continued. “One month they are up 10%, next month they fall 15%. But PPF? It gives guaranteed returns set by the government. Around 7% every year—steady, no matter what.”

Imagine you put ₹5,000 every month. Even if the stock market crashes, your PPF keeps growing peacefully in the background.

Aarav nodded. “That does sound comforting.”

Triple Tax Benefits – The Real Cherry on Top

Papa leaned forward. “PPF is not just about saving; it’s also about saving on taxes. Whatever you invest, up to ₹1.5 lakh a year, reduces your taxable income. And guess what—the interest and maturity amount are also tax-free.”

If you’re in the 30% tax bracket, investing ₹1.5 lakh in PPF saves you around ₹46,800 in taxes every year.

Aarav’s eyes widened. “That’s almost like the government is paying me to save!”

The Magic of Long-Term Compounding

Papa explained further. “The lock-in is 15 years. Sounds long, but that’s where compounding works its magic. Small amounts grow into something big.”

For example, investing ₹5,000 every month can grow into more than ₹16 lakh in 15 years, tax-free.

Aarav smiled. “That could even help with my kid’s education someday.”

Flexibility and Emergency Help

“Don’t worry about being forced to put huge amounts,” Papa reassured. “You can put in as little as ₹500 a year. And after 7 years, you can make partial withdrawals for emergencies.”

Imagine a sudden medical expense—you can dip into PPF instead of breaking an FD.

“Between the 3rd and 6th year, you can even take a loan against PPF at a very low interest rate,” Papa added.

Aarav thought for a moment. “So it’s like a piggy bank with extra features.”

& The Little Trick Most People Forget

Papa chuckled, “Now here’s a secret. To earn the maximum interest, always deposit between the 1st and 5th of the month. Interest in PPF is calculated on the lowest balance between the 5th and last day of each month. If you put money after the 5th, you lose interest for that month.”

Example: If Aarav puts ₹10,000 on 6th April, he earns interest from May. But if he deposits on 2nd April, he earns interest for April too. That one habit alone adds thousands more over the years!

Aarav laughed. “So timing matters in PPF just like timing matters in cricket shots!”

Untouchable Savings

“Another thing,” Papa said seriously. “No court or creditor can touch your PPF money. It’s your safe zone, no matter what financial storm comes your way.”

Closing Thought

Aarav finally admitted, “I used to think PPF was boring. But now I see it’s like the solid foundation of a house—quiet, strong, and dependable.”

Papa smiled. “Exactly, son. Flashy investments may come and go, but PPF is the steady friend that helps you build wealth safely, save taxes, and sleep peacefully.”

✨ Moral of the story: If you haven’t opened a PPF account yet, do it. And if you already have one, remember the golden rule—deposit before the 5th of the month to make every rupee count

A perfect portfolio should look like a balanced meal—different items that complement each other, not ten bowls of rice. 

We’ve all grown up hearing: “Don’t put all your eggs in one basket.” It makes sense right—you spread risk, so if one basket drops, you don’t lose everything.

But here’s the catch: in the investing world, I have met many people who often go overboard with this idea. They spread their money across so many mutual funds, stcoks that instead of gaining safety, they end up with clutter and lower returns. Would you believe it, one investor who came for portfolio revision had bought 87 mutual funds in the name of diversification !

Now, let’s simplify this with some everyday stories.

1. The Chips Problem

Meet Ravi. He loves shopping for snacks. One weekend, he buys ten packets of chips—classic salted, masala, cream & onion, tangy tomato, you name it.

At home, his wife laughs:
“You think you’ve got variety, but at the end of the day, it’s still just chips!”

This is exactly what happens when investors collect 10 to 20 equity mutual funds. On the surface, they look different. But just a deeper look inside, you will find that many of them hold the same big companies—The Infosys, HDFCs, ICICIs Reliance, TCS etc. etc,

Result? 

You’ve just bought different flavors of chips—lots of the same thing, no real balance.

2. Wardrobe Woes

Now think about your wardrobe. Imagine you own 15 pairs of jeans. Sure, they’re slightly different shades—light blue, dark blue, faded—but they’re all still jeans.

When you actually need to attend a wedding or a formal dinner, you realize: jeans won’t work. You should have added trousers, a kurta, or a blazer.

In investing, this is what happens when you pile up too many “similar” funds. When markets get rough, all of them behave the same way—and you’re left exposed.

3. What Real Diversification Looks Like

Real diversification is about mixing things that complement each other, not repeating the same stuff.

Think of it like:

• A thali meal: Rice, dal, roti, sabzi, pickle, and a sweet. Each dish adds something unique. Ten bowls of rice won’t make a better meal.
• Exercise: Jogging every day builds stamina, but what about flexibility and strength? That’s where yoga and weights come in. A complete fitness plan mixes them all.
• Streaming apps: Having Netflix, Prime, and Hotstar gives you different shows. Having three Netflix subscriptions adds nothing.

Your investments work the same way. Smart diversification means mixing:

• Asset classes: Equity (for growth), debt (for stability), gold (for protection) FDs / RDS (for emergency corpus).
• Sectors: IT, healthcare, FMCG, energy, etc.—so one industry’s fall doesn’t sink everything.
• Styles: Growth funds chase fast-rising companies, value funds hunt for bargains. Both shine at different times.
• Fund houses: Relying on one AMC is like cheering for only one IPL team—when they lose form, your entire portfolio suffers.
• Geographies: India is just 5% of global markets. Adding international exposure is like adding new spices to your kitchen—it widens your options.

4. Match It to Your Appetite

Diversification also depends on your style as an investor.

• The Conservative Investor: – Think of someone who prefers home-cooked food every day. Simple, safe, predictable. For them, a couple of balanced funds or index funds are enough. Add a little debt for stability. That’s it.
• The Moderate Investor: – Like someone who enjoys trying new restaurants once in a while but still sticks mostly to home food. For them, a mix of equity funds (large and mid-cap), some debt, and a touch of international exposure works well.
• The Aggressive Investor: – The foodie who loves experimenting—street food one day, fine dining the next. They can take higher risks with mid-cap and small-cap funds, plus some international funds, while still keeping a base of large-cap or index funds for balance.

5. The Real Lesson

Diversification isn’t about collecting more funds. It’s about choosing the right mix.

Think of your portfolio like your kitchen.

• Stocking 20 brands of instant noodles doesn’t make you healthier.
• Stocking rice, dal, veggies, fruits, spices, and some treats does.

Too much of the same thing is “clutter.” The right mix is “balance.”

The Bottom Line

– Don’t mistake quantity for quality.
– Don’t collect funds like stamps.
– Build a portfolio that looks like a balanced thali, not a cupboard full of chips.

When your investments are thoughtfully diversified, they’ll not only protect you in bad times but also help you grow steadily in good times.

Remember – More is not better. Better is better.

Seema: Rohit, I’ve been reviewing my mutual funds and honestly, they’re not doing as well as I thought. Did I pick the wrong ones?

Rohit: Maybe, maybe not. Let me ask—how did you pick them?

Seema: I just looked at the funds with the highest 1-year and 3-year returns and picked those. Seemed like the obvious choice!

Rohit: That’s like buying a car just because it went the fastest last year — without checking how it performs on bad roads, what mileage it gives, or how safe it is.

Seema: (laughs) Fair point. So what should I look for?

Rohit: Instead of just looking at past returns, think long-term. Check how stable the fund is across different market conditions. Did it handle a bad year as gracefully as a good one?

Seema: But I thought returns tell everything…

Rohit: Not really. Imagine you’re choosing between two cooks. One makes amazing food but is super inconsistent. The other may not be flashy but always delivers a decent meal. Who would you trust for a family dinner?

Seema: The consistent one, of course.

Rohit: Exactly. Same goes for funds. Also, look at the fund’s risk. Some funds give high returns but take wild bets to get there. That’s like driving 140 km/hr on a city road — exciting, but not sustainable or safe.

Seema: Hmm. Makes sense. I’ve also seen some 5-star rated funds online. Should I just pick those?

Rohit: Star ratings are a helpful start — they filter out the really bad options. But you still have to do your homework. Think of it like online shopping. Just because a product has good reviews doesn’t mean it fits your size, budget, or need.

Seema: That’s true! I’ve returned a lot of those “bestsellers” myself. So what should I actually check in a fund?

Rohit: Look at things like:

How expensive the stocks in its portfolio are — like checking if you’re overpaying for groceries.

How often it changes its holdings — like constantly switching gym routines without giving any one plan time to work.

And whether it’s focused more on large, mid, or small companies — each behaves differently in different markets.

Seema: Got it. I think I was just chasing the biggest names.

Rohit: That’s common. But remember, “big” is usually temporary. Long-term wealth is built on patience and consistency.

Seema: So how often should I review my portfolio?

Rohit: Unless there’s a big change in your goals or life, once every 2-3 years is enough. Constantly switching funds is like changing your diet every week — you won’t see results.

Seema: You’re right. I’ve been treating fund selection like buying clothes on sale — just grabbing the best-looking deal.

Rohit: (laughs) Investing is more like planning your retirement wardrobe — you want quality, durability, and comfort. Not just what’s trending this season.

Seema: Rohit, you’ve officially changed how I think about mutual funds. Time to clean out the clutter and start fresh — wisely this time!

Rohit: That’s the spirit! And remember, the goal is not just to make money fast, but to keep it and grow it steadily.

The Lazy Investor’s Guide to Making Your Idle Cash Earn More – Daily!

Let’s be honest – we Indians love keeping a good chunk of money parked in our savings bank accounts.
Why?
Point #1 – “I need it for Emergency Bro!”
Point #2 – “If it’s in the bank there is peace of mind”
Point #3 – “Bro I just keep it like that, just in case… you know?”

Now, what if I told you there’s a smarter way to park this idle cash? What if your ₹10,000 could earn ₹1.35 to ₹1.50 every single day, without any extra risk?

That’s ₹500+ a year, with almost the same liquidity as a savings account. Sounds too good? Well, say hello to Overnight Funds.

Let’s break it down the fun way – through a quick, relatable chat between Jay and Nikunj.

Jay: Bro, have you ever looked into overnight funds?

Nikunj: Overnight fund? Sounds like a sleepover for money! What is it exactly?

Jay: Haha, not wrong! It is where your money sleeps overnight… but while it’s sleeping, it’s also working and earning!

Nikunj: Wait what? Tell me more.

Jay: So basically, these are debt mutual funds that invest in instruments maturing the next day — like literally overnight. Super low risk, super short-term, and still give better returns than your savings account.

Nikunj: But are they liquid? Like, can I take out the money anytime?

Jay: Absolutely. Most allow redemption in T+1 or even instantly in some cases. Perfect for parking emergency funds or cash you’re not using immediately.

Nikunj: Hmm… sounds better than letting my ₹50,000 sleep for free in the bank.

Jay: Exactly! Imagine it like a money hostel — your cash gets a bed, food, and even does a night shift for extra earnings.

Why Overnight Funds Make Sense:

Better than savings account returns (with similar liquidity)

Low risk – only invests in overnight debt instruments

No exit load, no lock-in period

Perfect for emergency funds, bonus money, or idle cash

The Crux of the matter : If you’re someone who believes in “let the money rest in my account”, maybe it’s time to make your money rest smarter — not just sleep, but sleep and earn!