Money management (an Amateur’s perspective)!

It’s been a while since I have written an essay. I was thinking about my next topic and money management came up during a conversation at home (or some Whatsapp group conversation); Why not this topic?

True, I am an amateur when it comes to managing money. I have a few tricks up my sleeve that I have learned the hard way (thanks to my association with the AMC industry and insights that I gathered from various financial advisors). So, how do I go about doing it?

Strategy 0: Let me start with what I don’t do, I don’t invest in stock directly as I have borrowed an investment principle from a famous market investor, invest as long as you understand the company, their leadership, their business, and their future plans. Unfortunately, it’s a full-time job and takes a lot of time hence i don’t invest directly in the market. I have to admit, I don’t understand most businesses anyway. I take the moral high ground, I don’t invest in the stock market. I have tried in the past, let’s leave it there.

Strategy 1 (Long term, > 10 years): Some may say, 10 years is too long a time. With so many unknowns around us (e.g. the COVID19 pandemic), do 10 years really make sense? Be that as it may, for my long term is at least 10 years and I shall stick to the same. What do I do here?

  1. I don’t go after all indices, I typically follow NIFTY 50 and S&P BSE 50.

Strategy 2 (Midterm, 5–10 years): ​I go for mutual funds and I have logic for selecting funds:

  1. I look for Mint’s report on fund performance on a regular basis and use them to curate funds of my choice.

Strategy 3 (Short term, < 5 years, sometimes instant gratification):

  1. I go for traditional investment instruments like FD, RD, etc. for near time gratification requirements e.g. am a sucker for motorcycle parts (it’s like horse racing, I need to buy something or the other every 3–6 months), local holidays, school fee or any other unforeseen expenses, etc.

Summing it up; my strategy may be wrong, maybe right; I have diligently followed it. It is working well. I am certainly not a millionaire to write about “how to become a millionaire with smart investments?”. For mortals, this write-up might be useful:)

Originally published at on April 2, 2020.



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Raghu Sarangarajan | Growth hacking | Product management | Customer success | Entrepreneur | B2B start-ups | ex-SAP