Book Reviews Book Review: Prosperity through mutual funds

Book Review: Prosperity through mutual funds

The author, Arvind Paranjape explains the concepts of financial planning and mutual funds through interesting analogies which readers can easily relate to.
Ravi Samalad Apr 7, 2015

Internet is loaded with information about mutual funds. However, besides the information not being entirely reliable, the jargon can put off a lay investor. Arvind Paranjape’s book, “Prosperity through mutual funds” is a step-by-step guide on creating wealth through mutual funds and explains jargon in a simple and interesting manner.

The book is intended to help those who are new to financial world and for those who wish to enhance their knowledge about investments.

Using the interaction between two fictional lay investors, Yash and Isha and a fictional advisor Shekhar, the book explains concepts like asset allocation, inflation, asset allocation, power of compounding. The interaction between these characters in everyday situations makes the reading light and easy even for a layman. In fact, the key strength of the book is that the concepts are not defined in a typical textbook style.

The book starts with Yash and Isha attending an investor awareness meet organized by a financial advisor Shekhar on the topic ‘How to Grow Rich’ through financial planning. Inspired by Shekhar’s ideas, Yash and Isha decide to enroll for financial planning. What follows is a long interaction with Shekhar where Yash and Isha clarify all their doubts about investment.

The author has explained various concepts of mutual funds through analogies which readers can easily relate to. To explain diversification, Arvind drives home his point with the analogy of a farmer Ram Nimbalkar who cultivates multiple crops so that he is not affected by vagaries of weather if a few of his crops turn bad. Cultivating a single crop means taking high risk. The same holds true when one invests his/her entire savings in a single asset class.  

The book is divided into five parts. The first part deals with financial planning, asset allocation, choosing asset class, power of compounding, inflation and risk assessment while the remaining part of the book delves deep into mutual funds.

The expertise and passion of the author Arvind Paranjape who has been an advisor since 2003 clearly comes across. The book is available at a price of Rs. 295 in both English and Marathi and is published by Tejal Prakashan.

If you wish to help your clients take informed decisions and enroll for financial planning, then this is the book to gift them.

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