(This column was first published on Value Research Online.)
In last week’s column, I wrote about 3 combinations that should never be mixed. So, obviously, this week I had to list 3 combinations that should be mixed. Right? Yup! Because there are some things in this world that mix together wonderfully well. To begin with, there’s something to do with music…
Mohit Chauhan and solitude
Don’t tell me you haven’t heard of, or heard, Mohit Chauhan. He’s been around for a long time in the Hindi music scene. I’ve been listening to him since his days with the band, Silk Route. He’s been a playback singer for numerous movies, but he came into his own with Rockstar (2011). To say that that was one of the greatest music albums from a Bollywood movie would be an understatement. And Mohit Chauhan deserves as much credit for it as the composers and lyricists. I don’t think there could be a better combination than a quiet corner and Mohit Chauhan on loop, especially Jo Bhi Main from the aforementioned movie.
Peanut butter and chocolate milkshake
Wait; there could be a better combination, only if you have the taste for it. I’m sure a lot of you have had peanut butter on your bread. But there’s nothing quite as yum as adding it to your chocolate milkshake. I love it because it’s the most delicious thing I can prepare all by myself. Which is what I think I’ll do before going any further with this column. Be right back.
Equity and debt
Don’t like Mohit Chauhan or peanut butter? No problem. But a balanced fund is something that hardly any investor would not like. It’s the most ideal mix of equity and debt. A larger part of a balanced fund’s assets are invested in equity, which results in capital appreciation. The smaller part is invested in debt, which results in stability in performance. A balanced fund is the best way for a new investor to get started and develop an experience of mutual fund investments in a steady, less volatile way. It could also be a good addition to a seasoned investor’s fund portfolio, an addition that protects the overall portfolio’s returns during bear phases. And the best thing about this equity and debt combination is that balanced funds are treated as equity funds for taxation purposes, which means that there’s no tax to be paid on long-term gains from them. I doubt there could be a better combination from an investment perspective.