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It's easy to make a buck. It's a lot tougher to make a difference. -Tom Brokaw
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Book Review: Money Wise


Author: Deepak Shenoy
Publish Date: November 2021
URL: @ Amazon
Atul's Rating: *****
Review Date 30-Dec-2021

Chapter 1 is about fundamental concepts of money and investing, that you would think are common knowledge and will be intrigued to find that they aren't. I certainly am.

    Salient Points:
  1. Let the money compound
  2. Money is largely made when you sleep
  3. You don't need that much money to make money
  4. Initially focus on earning money. Not returns. Focus on increasing your income
  5. When you have enough money, think about 'allocation' - categories with varied
  6. amount of risk Plan for absolute necessities
  7. With the rest, enjoy your life!
  8. Why invest at all ? To build personal leverage
  9. Must have emergency fund and (term and health) insurance

Chapter 2 is all about Mutual Funds

    Salient Points:
  1. You can let Mutual Funds do your investing if you lack the time, skills, energy and knowlege to research, track, buy, sell.
  2. At its simplest, MFs are a made by a pool of investors giving money to an advisor to manage it for them. 'Abeyaar, not just stocks'.
  3. In practice, they are quite complex: Risk-n-Cap-Classification, AUMs, NAVs, Cash%, Redemptions, Fees and so on.
  4. And there are one-too-many types: index funds, ETFs, international funds, gold funds, and if you are 'well heeled' AIFs, PMS, it goes on ...

Chapter 2 gives a neat recipie for investing in MFs, but you will not find it in this review, please read the book :) This chapter has a nice conversational style and discusses real-life examples, as well as interesting pieces of history of mutual funds like UTI, from which there is a lot to learn . At the end of it, you will certainly be highly knowledgeable about MFs and will also be able to decide how you want to invest in them. I hope all readers finally learn why monthly dividends from MFs are pointless!

Chapter 3 puts it all together to suggest a practical approach to investing

    Salient Points:
  1. Investing is wholly dependent on your context - age, starting level, time horizon and goals.
  2. Here is a piece that is so important that I am going to quote it: 'Always get the emergency funding right and do it first. If you hate your job, or your boss is harassing you, you are going to need this just to be able to move on without anxiety. This is also crucial if your company shuts down, or you have to stop working for some reason.' There is also a easy-to-get flowchart that will help you with this.
This chapter looks at the various needs one is likely to have at various stages in life and has practical advice, with nifty tables having example calculations, on strategies and tactics that will help you meet those needs.

Chapter 4 has all you ever wanted to know about stocks and how the various players of this world look at them and act on them. There is a whole section on a bunch of things to watch out for.

Chapter 5 has a cute mythological story retold to help drive home the point - don't get suckered! And oodles of golden advice on staying safe in the markets. And very interesting takes and anecdotes on some of the current moneybags stories, including the crypto craze.

Overall, this book is a must read for every Indian investor and not just the beginners and the young. With this book, Deepak continues to inform his audience as he has done for past many years through various fora. Given that there are so many good books on investing already, it's Deepak's genius that has found a layer that is not generally touched upon much by other books and has addressed it so well. Once you read the book, you will agree with me, go buy it! :)

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