Showing posts from July, 2014

Are you(financially) literate?

I know, you(anyone reading this blog) is not only literate but educated(or may be highly educated) as well. How ever very few of us are financially literate, we hardly understand the basics of finance or money market instruments for which we become the easy target of financial product mis-selling. It's not just one off a case, I have so many friends and relatives who have been sold rather I would say I have hardly found anyone who has not been a victim.

Do you want to check whether you are financially literate or not, answer below questions( even though it looks like a subjective matter, I have tried my best to make it as objective as possible). All the answers are Yes/No type and you can consider yourself literate only If you can answer all of them correctly.

1. Do you know the difference between saving and investing?

2. Do you understand how equity mutual fund works?

3. Do you believe your money is safe in fixed deposit?

4. Do you consider investing in stock market is risky?