I just finished reading ‘Dream Big’ written by Mukesh Jindal and Arunraj VS on the subject of investment. The blurb of the book sounded like a self-help book about investment in Indian Market. I started to read and it surprised me because there are no financial jargons thrown at me. The book is written in a simple language. The main focus of the book is to provide a step by step guide for investments.
If you save money today it will save you tomorrow. How to save money is a critical question. In answer, Jindal quotes Warren Buffett’s equation Expenses = Income – Saving. I am sure most people do it the wrong way which is Saving = Income – Expenses. Jindal suggests starting saving and investing at an early age. To help readers he has also given some tips on how to save. This book aims at today’s youth who believes to live in a moment and worry little about the future. Credit cards and EMIs are spoiling our saving habits.
Once the saving is sorted then comes the part of making that money work for you means investing the money. This book debunks the common misconception about investments that it is only for people with high net worth. However, Jindal says, your earning capacity is directly proportional to your learning capacity. He gives an important tip here, always remember to beat the beast of inflation. Returns on your investments should be greater than the rate of inflation. This tip is important for everyone who has some future plans such as higher education, family vacation, a bigger house or even retirement. He has explained it with the help of small examples. He also gave the formula to calculate ‘Future Value’of money which will help to plan better. The earlier you start to save the better returns you will get, says Jindal.
The author raised a vital question about investing the surplus in fixed deposit or insurance policies. Are these really the best options for investments? The option of investing in Mutual Funds may give you better returns and help you beat the inflation. When I read mutual funds, many questions started popping in my head. What is a Mutual Fund? What are the types of the fund? Which funds to look for and when? Jindal has done a good job of answering all these questions without using heavy jargons. Most importantly he has also given key points to read the Mutual Fund offer document.
I understood the benefits of investment in Mutual Funds but the next question was how much money will I need to invest? Do I need to put in all money at once or can I have some monthly payment option? The author read my mind and had answers to all the questions ready. I was happy to know that I can invest a little every month and still get good returns.
You will ask me did he mentioned anything about the security on the funds? My answer is ‘yes’. There is a chapter on it which explains the regulatory framework again no legal jargons used. He also debunked some myths about the Mutual Fund investments. After reading all the types in detail, I was confident that I can choose the Mutual Fund which will benefit me. Now I know which points to read in the ‘Offer document’.
Jindal has dealt with another important topic in this book – Insurance. Conventionally, insurance is viewed as another investment option. He wrote a separate chapter on ‘Why insurance should not be used for investment.’ I absolutely agree with him. Let insurance do the job of insurance. For investments look for investment products. If you are not comfortable with mutual funds then he also suggested some other options such as PPF, NSC, National Pension Scheme, etc. While he was giving all these ideas he didn’t forget to give the warning to stay away from Exotic Products which always over promises and under delivers. Usually, these products promise unbelievable returns in short time. Do not trust them. This book has a small chapter explaining about the investment in Gold.
Every investor has a different goal. Someone may look for investments for children’s education, another may need to plan for the retirement. Jindal has given financial planning tips for all these categories. Even if you wish to focus on investments in the Global market, this book can be your guide.
It is important to pass on your wealth to your rightful successor. The author has even covered the topic of legacy planning. Will is a common way to pass on the legacy. However, this book has introduced an option of the private trust also.
Jindal’s vast experience in the field of investments and finance is clearly noticeable when he explains various concepts of investments. It sounds easy to understand for anyone who has no background in the finance or investments. Whatever you do but do not put all your eggs in one basket. Always diversify your investments for better results. Jindal does not stop by giving the investments options but he also educates readers about risk management, portfolio review and rebalancing of the portfolio.
This book is recommended for everyone who wants to learn about different types of investment options available, how to invest, how to minimize risk and how to stay safe from over promising investment schemes.
Let the money to work for us!
This book review is a part of “The Readers Cosmos Book Review Program and Blog Tours, for details log on to thereaderscosmos.blogspot.in“.
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