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Fiscal Deficit Explained: Meaning, Formula, Causes & Impact | Budget 2026–27

The fiscal deficit is a topic of discussion every year during budget presentations, but people often dismiss it as simply “the government’s deficit.” In simple terms, just as a household spends more than it earns, the government also has to borrow to cover its extra expenses. The fiscal deficit for Budget 2026-27 is estimated at approximately 4.3% of GDP. This isn’t always a bad sign if the spending is on development and infrastructure, it can boost growth. In this article, we will understand its meaning, calculation, causes, and effects in a simple way.

What is Fiscal Deficit?

A fiscal deficit occurs when the government’s total expenditure exceeds its total revenue, excluding borrowings. This means the government has to borrow additional money from the market to meet its expenses.

What constitutes the government’s total revenue?

Revenue Receipts : This is the government’s regular income – such as tax collections (Income Tax, GST, Corporate Tax) and non-tax revenue (dividends, fees, licenses, etc.). The government does not have to repay this money.
Capital Receipts : This includes disinvestment, sale of assets, and recovery of loans given. This is not a regular source of income.
Borrowings : When the above two sources of income fall short of expenditure, the government borrows from the market by issuing bonds and securities. This is a means of financing the deficit, not a source of income.

Fiscal Deficit Formula

There is a fixed and official formula for calculating the fiscal deficit, which is used in the budget documents every year.

Fiscal Deficit Formula

Fiscal Deficit = Total Expenditure – (Revenue Receipts + Non-Debt Capital Receipts)

Formula components :

Constituent	What is included?	Meaning
Total Expenditure	Revenue + Capital expenditure	The government’s total annual expenditure
Revenue Receipts	Tax + Non-tax income	Regular income that does not have to be repaid.
Non-Debt Capital Receipts	Disinvestment, Loan recovery	Capital income that is not borrowed

Example :

Item	Amount (₹ trillion)
Total Expenditure	52
Revenue Receipts	34
Non-Debt Capital Receipts	4

Fiscal Deficit = 52 – (34 + 4) = ₹14 lakh crore

India Fiscal Deficit Status: Budget 2026–27 Key Numbers

Indicator	Budget 2026–27 Data	What does it represent?
Fiscal Deficit Target	4.3% of GDP	The government’s estimated total fiscal deficit as a percentage of GDP.
Revised Estimate 2025–26	4.4% of GDP	Revised deficit level of the previous year
Earlier Fiscal Target	Below 4.5% achieved	The government has achieved its previous deficit control target.
Net Market Borrowings	₹11.7 trillion	Net borrowing from the market (dated securities) to cover the deficit.
Public Capital Expenditure	₹12.2 trillion	Capital expenditure on infrastructure and development projects
Debt-to-GDP Ratio (2026–27)	55.6%	Total government debt as a percentage of GDP
Long-Term Debt Target	50±1% by 2030–31	Medium-term debt control target

Where Does the Government Spend So Much?

The biggest reason for a rising fiscal deficit is not simply “overspending,” but rather it’s crucial to examine where the spending is directed. In the 2026-27 budget, the government has clearly emphasized growth-oriented and asset-creating expenditure.

Capital Expenditure Push Emphasis on infrastructure and asset creation :

Capital expenditure (Public Capex) has been increased to approximately ₹12.2 lakh crore in the Budget for 2026–27. This expenditure is for creating long-term assets.

7 new high-speed rail corridors (e.g., Mumbai-Pune, Delhi-Varanasi, Chennai-Bengaluru)
Plan to operationalize 20 new national waterways over the next 5 years
City Economic Regions (CER) for selected cities ₹5,000 crore allocated per CER
Large infrastructure projects have a direct impact on employment and logistics efficiency.

Manufacturing & Strategic Investment :

The government has made several targeted announcements in the 2026-27 budget to strengthen the manufacturing and strategic sectors.

Biopharma Mission : ₹10,000 crore, aiming to make India a global biopharma hub
Semiconductor Mission (ISM 2.0) : focusing on chip design and equipment manufacturing
Electronics Manufacturing Outlay : increased to approximately ₹40,000 crore
Rare Earth Corridors : development in Odisha, Kerala, Andhra Pradesh, and Tamil Nadu
₹10,000 crore for 3 new Chemical : Parks and Container Manufacturing

MSME and small industry support :

Considering the MSME sector as a key pillar of employment and supply chains, special funding has been provided.

SME Growth Fund : ₹10,000 crore for scaling up support to emerging enterprises
Aatmanirbhar Enterprise Support : ₹2,000 crore in additional support for micro-enterprises
TReDS Platform : Mandatory transaction platform for government procurement from MSMEs

Fiscal Deficit vs Budget Deficit vs Revenue Deficit

Criteria	Fiscal Deficit	Revenue Deficit	Primary Deficit
Simple meaning	The amount the government has to borrow to cover its total expenditure.	When the government’s revenue income is less than its revenue expenditure.	The deficit remaining after deducting interest payments from the fiscal deficit.
What does it show?	total borrowing requirement	Imbalance in daily government spending	The actual deficit for the current year (excluding interest on old debt)
Formula	Total Expenditure – (Revenue Receipts + Non-Debt Capital Receipts)	Revenue Expenditure – Revenue Receipts	Fiscal Deficit – Interest Payments
Type of expense	Both revenue and capital expenditures are included.	Only revenue expenses are included.	Adjusted form of fiscal deficit
What does it indicate?	How much will the government have to borrow from the market?	Is the government unable to cover its regular expenses with its regular income?	Is the new spending excessive, or is it simply the interest burden that is too high?
Risk level (generally)	Medium to high – depending on the percentage of GDP.	High – if it remains constant	Analytical indicators – show policy quality.
Used in policy analysis	Budget and borrowing analysis	Revenue management status	Understanding debt burden versus new spending

Main Causes of Fiscal Deficit

Economic Slowdown : When the economy slows down, tax collection also decreases. Government revenue from GST, corporate tax, and income tax falls, while expenditure remains relatively constant leading to a larger deficit.
High Government Spending : The government continuously needs to spend on several essential sectors—such as infrastructure, defense, health, education, and social programs. Large development projects and welfare schemes can increase the pressure on the deficit.
Interest Payment Burden : Interest payments on existing debt must be made every year. If the total debt is large, the interest payments are also substantial—and this becomes a persistent cause of the fiscal deficit.
Tax Structure Gaps : A narrow tax base, poor compliance, and a large informal economy prevent the government from collecting its full potential tax revenue.
Policy Stimulus Measures : Sometimes, the government deliberately provides sector-specific incentives, manufacturing subsidies, or industry packages to boost growth. This is strategic spending, but it can increase the deficit in the short term.

Is Fiscal Deficit Always Bad?

A fiscal deficit may seem negative at first glance, but it is not harmful in every situation.

When a Fiscal Deficit Can Be Beneficial :

If the government invests the deficit funds in productive activities, it can strengthen the economy in the long run.

Government spending is necessary to stimulate demand during a recession.
Spending on infrastructure and long-term projects boosts future growth.
Investments in manufacturing and technology improve productivity.
Capital expenditure-based spending also promotes employment and private investment.

When a Fiscal Deficit Can Become a Risk :

If the deficit remains consistently high and spending is unproductive, pressure builds up.

Spending is primarily focused on consumption and subsidies.
Debt and interest payments begin to rise rapidly.
High government borrowing puts pressure on interest rates.
Inflation and the currency are negatively affected.

How Fiscal Deficit Impacts Common Citizens ?

Inflation could rise : If the government borrows more and spends more, the amount of money in the market increases. This often leads to higher prices for goods and services.
Loans could become more expensive : When the government borrows heavily, there is upward pressure on interest rates. This can make home loans and business loans more expensive.
Tax policy could change : If there is a persistent large deficit, the government may tighten tax regulations or introduce new methods of revenue collection in the future.
Job opportunities could also increase : If deficit spending is invested in infrastructure projects such as roads, railways, and factories, both economic activity and employment increase. This is what determines whether a deficit is beneficial or detrimental.

Impact on Investors & Markets

Bond Market : When the government borrows more, the supply of government bonds in the market increases. This typically drives bond yields higher. A rise in yields means that new borrowing becomes more expensive.
Stock Market : If the deficit is increasing due to capital expenditure and infrastructure spending, the market generally views this positively. In such times, there is increased interest in the shares of infrastructure, capital goods, and PSU project companies.
Currency : A persistently high deficit and increasing government debt make foreign investors cautious. This can put pressure on the currency, especially if the debt is rising rapidly.

Conclusion

The fiscal deficit is an important indicator for understanding the state of the economy, but it shouldn’t always be viewed negatively. What’s more important is how the government is using the borrowed money. If the spending is on infrastructure, industry, and development projects, then that deficit can actually support future growth. The key is not in the size of the deficit, but in its judicious use. Stay updated with the latest market information – download Pocketful and begin your investing journey with zero brokerage.

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Frequently Asked Questions (FAQs)

Why does a fiscal deficit occur?
When tax and other revenues are insufficient to cover expenses, the government has to borrow money.
How does the government finance the fiscal deficit?
The government mainly finances it through borrowing, bonds, and loans.
Is a higher fiscal deficit dangerous?
Not necessarily. If the money is used for developmental projects, it’s acceptable; otherwise, the risks can increase.
How does the government cover a fiscal deficit?
The government covers the deficit by selling bonds and borrowing from the market.
Can a fiscal deficit increase loan interest rates?
Yes, higher government borrowing can keep interest rates elevated.

February 10, 2026

Best Corporate Bond Funds in India

In today’s volatile stock market, investors are seeking options that offer both security and predictable returns. This is why corporate bonds are gaining attention in 2026. Bond yields have reached attractive levels in recent months, and the Reserve Bank of India’s policies have boosted confidence in this sector. As a result, many are now considering the best corporate bonds in India as a viable long-term investment option.

What Are Corporate Bonds and How Do They Work?

Corporate bonds are investment instruments through which companies raise money from investors and, in return, pay them a fixed rate of interest. They have a fixed maturity period, at the end of which the invested principal is repaid. The risk associated with these bonds depends on the financial health of the issuing company, and the returns are typically higher than those of government bonds.

Best Corporate Bonds Mutual Funds in India (2026)

HDFC Corporate Bond Fund
ICICI Prudential Corporate Bond Fund
SBI Corporate Bond Fund Direct Growth
Kotak Corporate Bond Fund Direct Growth
Bandhan Corporate Bond Fund Direct Growth
Nippon India Corporate Bond Fund Direct Growth
Axis Corporate Bond Fund Direct Growth
Tata Corporate Bond Fund Direct Growth
Franklin India Corporate Debt Fund
Baroda BNP Paribas Corporate Bond Fund Direct Growth

1. HDFC Corporate Bond Fund

The HDFC Corporate Bond Fund is managed by HDFC Mutual Fund, which was established in 1999. This fund primarily invests in high-quality corporate and government bonds, including those of well-known institutions such as State Bank of India, Bajaj Finance, and the Government of India. The fund focuses on generating stable income with controlled risk. Its performance has consistently been in line with its category over the long term, and its portfolio is diversified across various sectors.

Fund Details :

Details	Information
Current NAV	34.09
Fund Size	34,804.50
Expense Ratio	0.62%
Minimum Investment	₹100
Minimum SIP	₹100
Exit Load	Nil
Lock-in Period	NA
Fund Manager	Anupam Joshi

Fund Performance

Metric	Value
3-year return	7.39%
5-year return	6.12%
Alpha	0.03%
Beta	0.43
Sharpe Ratio	0.1996
Risk	7.39%

(Data as of 03 Feb 2026)

2. ICICI Prudential Corporate Bond Fund

ICICI Prudential Corporate Bond Fund is a debt fund that invests in high-quality corporate bonds and government securities. Its portfolio is diversified across various sectors, including LIC Housing Finance, government securities, and infrastructure-related companies. The fund is managed by Manish Banthia. Its performance over the past few years has been consistent with the category average, and its focus remains on maintaining a balanced risk profile with stable returns.

Fund Details :

Details	Information
Current NAV	32.71
Fund Size	33871.47
Expense Ratio	0.57%
Minimum Investment	₹100
Minimum SIP	₹100
Exit Load	Nil
Lock-in Period	NA
Fund Manager	Manish Banthia

Fund Performance

Metric	Value
3-year return	7.67%
5-year return	6.46%
Alpha	0.06%
Beta	0.28
Sharpe Ratio	0.3588
Risk	7.67%

(Data as of 03 Feb 2026)

3. SBI Corporate Bond Fund

The SBI Corporate Bond Fund is managed by SBI Mutual Fund, which was established in 1992 and is one of the oldest and largest fund houses in the country. This fund invests in corporate bonds and government securities, maintaining a balanced portfolio. Its major holdings include investments in entities such as Government of India Bonds, NABARD, Pipeline Infrastructure, and Bharti Telecom. The fund is managed by Rajeev Radhakrishnan, and its focus is on generating stable returns while managing risk.

Fund Details :

Details	Information
Current NAV	₹15.94
Fund Size	24.606.87
Expense Ratio	0.77%
Minimum Investment	₹5,000
Minimum SIP	₹500
Exit Load	NA
Lock-in Period	NA
Fund Manager	Rajeev Radhakrishnan

Fund Performance

Metric	Value
3-year return	7.17%
5-year return	5.82%
Alpha	0.02%
Beta	0.42
Sharpe Ratio	0.1606
Risk	7.17%

(Data as of 03 Feb 2026)

4. Kotak Corporate Bond Fund Direct Growth

The Kotak Corporate Bond Fund Direct Growth is managed by Kotak Mutual Fund and overseen by Deepak Agrawal. This fund primarily invests in high-quality corporate bonds and government securities, maintaining a balanced portfolio. Its major investments are in Government of India Bonds and institutions like NABARD, which demonstrate stability and a reliable credit profile. The fund’s structure focuses on generating stable returns over the long term while managing risk effectively.

Fund Details :

Details	Information
Current NAV	4063.35
Fund Size	18,840
Expense Ratio	0.69%
Minimum Investment	₹100
Minimum SIP	₹100
Exit Load	NA
Lock-in Period	NA
Fund Manager	Deepak Agrawal

Fund Performance

Metric	Value
3-year return	7.45%
5-year return	6.17%
Alpha	0.04%
Beta	0.40
Sharpe Ratio	0.2295
Risk	7.45%

(Data as of 03 Feb 2026)

5. Bandhan Corporate Bond Fund

The Bandhan Corporate Bond Fund is managed by Bandhan Mutual Fund, which was established in 1999. The fund is managed by Suyash Choudhary. Its portfolio primarily invests in government bonds and debt instruments of strong corporate companies. Its major holdings include Government of India Bonds, along with large corporate names such as Larsen & Toubro and Reliance Industries. It also includes a portion of Net Current Assets, ensuring a balanced and diversified investment structure for the fund.

Fund Details :

Details	Information
Current NAV	20.36
Fund Size	14,855.50
Expense Ratio	0.65%
Minimum Investment	₹1,000
Minimum SIP	₹100
Exit Load	NA
Lock-in Period	NA
Fund Manager	Suyash Choudhary

Fund Performance

Metric	Value
3-year return	7.08%
5-year return	5.79%
Alpha	0.01%
Beta	0.32
Sharpe Ratio	0.1565
Risk	7.08%

(Data as of 03 Feb 2026)

6. Nippon India Corporate Bond Fund

The Nippon India Corporate Bond Fund is managed by Nippon India Mutual Fund, which was established in 1995. The fund is managed by Vivek Sharma. Its portfolio primarily invests in government bonds and debt instruments of strong corporate entities. Its major holdings include Government of India Bonds, along with investments in companies such as NABARD, Aditya Birla Housing Finance, Siddhivinayak Securitisation Trust, and Shivshakti Securitisation Trust. It also maintains a portion in net current assets, ensuring a balanced and diversified investment structure.

Fund Details :

Details	Information
Current NAV	₹61.65
Fund Size	10,430.66
Expense Ratio	0.76%
Minimum Investment	₹1,000
Minimum SIP	₹100
Exit Load	NA
Lock-in Period	NA
Fund Manager	Vivek Sharma

Fund Performance

Metric	Value
3-year return	7.50%
5-year return	6.51%
Alpha	0.04%
Beta	0.46
Sharpe Ratio	0.2193
Risk	7.50%

(Data as of 03 Feb 2026)

7. Axis Corporate Bond Fund

The Axis Corporate Bond Fund is managed by Axis Mutual Fund, which was established in 2009. The fund is managed by Devang Shah. Its portfolio invests in government bonds and debt instruments issued by financial institutions. Its major holdings include Government of India Bonds, along with instruments from institutions such as NABARD, Clearing Corporation of India, and SIDBI. It also maintains a portion in Net Current Assets, ensuring a balanced and diversified investment structure for the fund.

Fund Details :

Details	Information
Current NAV	18.65
Fund Size	9,435.82
Expense Ratio	0.95%
Minimum Investment	₹100
Minimum SIP	₹1,000
Exit Load	NA
Lock-in Period	NA
Fund Manager	Devang Shah

Fund Performance

Metric	Value
3-year return	7.34%
5-year return	6.07%
Alpha	0.02%
Beta	0.41
Sharpe Ratio	0.1967
Risk	7.34%

(Data as of 03 Feb 2026)

8. Tata Corporate Bond Fund Direct Growth

The Tata Corporate Bond Fund Direct Growth is managed by Tata Mutual Fund, which was established in 1994 and is one of India’s oldest and most trusted fund houses. The fund is managed by Murthy Nagarajan. Its portfolio primarily invests in government bonds and corporate bonds issued by financial institutions. Its major holdings include instruments from institutions such as the Government of India, NABARD, National Housing Bank, and SIDBI, ensuring a balanced and diversified portfolio.

Fund Details :

Details	Information
Current NAV	12.68
Fund Size	4235
Expense Ratio	0.86%
Minimum Investment	₹5,000
Minimum SIP	₹150
Exit Load	NA
Lock-in Period	NA
Fund Manager	Murthy Nagarajan

Fund Performance

Metric	Value
3-year return	7.12%
5-year return	–
Alpha	0.01%
Beta	0.44
Sharpe Ratio	0.1502
Risk	7.12%

(Data as of 03 Feb 2026)

9. Franklin India Corporate Debt Fund

The Franklin India Corporate Debt Fund is managed by Franklin Templeton Mutual Fund, which was established in 1995. The fund is managed by Anuj Tagra. Its portfolio is diversified across government bonds and debt instruments of private companies. Its major holdings include Government of India Bonds, as well as investments in companies such as Poonawalla Fincorp, NABARD, RJ Corp, Sikka Ports & Terminals, REC, SIDBI, Embassy Office Parks REIT, and Jubilant Beverages, ensuring a balanced investment structure across diverse sectors.

Fund Details :

Details	Information
Current NAV	111.89
Fund Size	1,338.11
Expense Ratio	0.76%
Minimum Investment	₹10,000
Minimum SIP	NA
Exit Load	NA
Lock-in Period	NA
Fund Manager	Anuj Tagra

Fund Performance

Metric	Value
3-year return	7.67%
5-year return	–
Alpha	0.05%
Beta	0.32
Sharpe Ratio	0.2213
Risk	7.67%

(Data as of 03 Feb 2026)

10. Baroda BNP Paribas Corporate Bond Fund

The Baroda BNP Paribas Corporate Bond Fund is managed by Baroda BNP Paribas Mutual Fund, which was established in 2003. The fund is managed by Gurvinder Singh Wasan. Its portfolio invests in government bonds and debt instruments of large public and private sector companies. Its major holdings include NABARD, Indian Railway Finance Corporation (IRFC), REC, Export-Import Bank of India, NTPC, Bajaj Housing Finance, and Government of India Bonds. It also maintains a portion in Net Current Assets, ensuring a diversified and balanced investment structure.

Fund Details :

Details	Information
Current NAV	30.10
Fund Size	482.08
Expense Ratio	0.58%
Minimum Investment	₹5,000
Minimum SIP	₹500
Exit Load	NA
Lock-in Period	NA
Fund Manager	Gurvinder Singh Wasan

Fund Performance

Metric	Value
3-year return	7.61%
5-year return	5.57%
Alpha	0.04%
Beta	0.52
Sharpe Ratio	0.2141
Risk	7.61%

(Data as of 03 Feb 2026)

Risks Associated With Corporate Bond Funds

Deterioration of the company’s financial health : If the company in which the fund has invested experiences a decline in earnings, it may face difficulties in paying interest or repaying the principal. This impacts the fund’s value.
Impact of interest rate changes : When the RBI raises interest rates, the value of existing bonds decreases. This directly affects the fund’s Net Asset Value (NAV).
Difficulty in selling bonds quickly : Some bonds are not easily sold immediately. Selling them at a fair price when needed may take time.
Credit rating downgrade : If a company’s credit rating is downgraded, the value of its bonds may fall, affecting the fund’s returns.
Market uncertainty : Although these are considered safer than equity markets, economic conditions and government policies can influence their performance.

Conclusion

In conclusion, corporate bond funds are a balanced option for investors seeking regular and stable returns without taking on excessive risk. Choosing the right Plateform requires understanding not only the returns but also its holdings, fund manager, and expenses. With a little patience and the right information, corporate bond funds can bring stability to your portfolio.

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Frequently Asked Questions (FAQs)

What are corporate bond funds?
These are funds that invest in corporate bonds and earn income from interest payments.
Are corporate bond funds risky?
They are less risky than the stock market, but the risk depends on the financial health of the company.
How much return can corporate bond funds give?
Typically, they can give returns between 6% and 8%.
Can I invest through SIP?
Yes, you can invest in these funds through SIP (Systematic Investment Plan).
How long should I stay invested?
A minimum investment period of 2-3 years is generally recommended.

February 10, 2026

Mutual Fund Industry in India: Siz, Trends & Future Outlook

In India, mutual funds have gradually become a part of people’s everyday investment habits. Investing is no longer limited to large investors; even ordinary people are now participating in the market through SIPs (Systematic Investment Plans). The industry has grown rapidly, and along with it, investors’ mindsets have also changed. In this blog, we will understand the current state of the mutual fund industry and its future prospects in simple terms.

Current Size of the Mutual Fund Industry in India

Today, India’s mutual fund industry has become a strong pillar of the country’s financial system. By the end of December 2025, the industry’s total Assets Under Management (AUM) had exceeded ₹80 lakh crore, demonstrating the continuously growing confidence of investors.

AUM represents the total amount of money that mutual fund companies manage on behalf of investors across various schemes. Average AUM (AAUM), on the other hand, reflects the average assets under management over the entire month, providing insight into the stability of investment flows. The mutual fund industry has witnessed exceptional growth over the past ten years. While the total AUM was approximately ₹20 lakh crore in 2015, it has more than quadruple by 2025.

This rapid growth is primarily driven by the increasing popularity of SIP (Systematic Investment Plan) investments, easy access through digital platforms, and growing financial awareness among investors. Today, mutual funds are no longer limited to large investors; small and medium-sized investors are also participating regularly, further strengthening the industry’s foundation.

Year	Total AUM (₹ lakh crore)
2015	20.00 +
2020	30.00 +
2025	80.00 +

Category-wise Distribution of Mutual Fund Assets

Investment categories in the mutual fund industry

Equity Mutual Funds: Equity funds have become the largest segment of the mutual fund industry. Investors prefer them because of the potential for better returns from the stock market over the long term. Funds like Flexi-cap and multi-cap are seeing particular interest, as they can adjust their portfolios according to market conditions.
Debt Mutual Funds: Debt funds are suitable for investors who want to minimize risk and expect regular income. Because they invest in government and corporate bonds, they are also seen as an alternative to fixed deposits (FDs). Changes in interest rates directly impact these funds.
Hybrid Mutual Funds: Hybrid funds invest in both equity and debt. Their objective is to strike a balance between risk and return. They are considered a practical option for new investors and those with a moderate risk appetite.
Passive Funds and ETFs: Passive funds and ETFs have grown rapidly in popularity over the past few years. These funds have lower costs and track a specific index. Investors who want market-like returns at a lower cost are increasingly choosing them.
Gold and Commodity Funds: Gold and commodity-based funds are for investors who want to hedge against market uncertainty. Demand for these funds increases during times of inflation and global tension, as they are considered safe-haven investments.

Shifting Investor Preferences

Shift towards Equity and Passive Investing: Investors are now focusing not just on safe options, but on long-term wealth creation. This is why the share of equity and passive funds is increasing.
SIPs Connect with the Average Investor: SIPs (Systematic Investment Plans) have made investing easy and regular. It has become the most trusted method for investors in smaller cities and for new investors.
Focus on Cost and Transparency: Today, investors make decisions after understanding the expense ratio, fund strategy, and risk level. This is why low-cost and transparent products are being chosen more often.

Growth Drivers of Mutual Funds in India

Growing habit of SIP investments: SIPs have made investing easy and regular. People are able to invest small amounts every month, leading to a continuous increase in the number of investors over the long term.
Digital platforms and mobile apps: Online apps and websites have made buying mutual funds very simple. Now investors can invest directly from their mobile phones without needing an agent.
Improved financial literacy: Campaigns by AMFI and SEBI are providing people with accurate information about investing. People are now considering mutual funds as a serious investment option alongside fixed deposits.
Growing middle class and income: The increasing size of the middle class in the country has led to a rise in the number of investors. With higher incomes, people are focusing on both saving and investing.
Participation of young investors: The younger generation is now starting to invest early. Due to their longer life expectancy and future planning, they are using mutual funds as a means of wealth creation.

Recent Performance and Industry Momentum

AUM Growth Trends in Recent Years: The AUM of the mutual fund industry has grown consistently over the past few years, but the pace of growth has not been as rapid as before. The main reasons for this are fluctuations in the stock market and high valuations. When the market is strong, AUM grows rapidly, and when the market is weak, the growth slows down. Despite this, the industry’s total size remains at record levels.
The Difference Between Net Inflows and Market Returns: There are two reasons for AUM growth one is new money (Net Inflows) and the other is returns from the market (Market Appreciation). Even when the market falls, the regular investments through SIPs help stabilize the industry. This is why the mutual fund industry doesn’t completely collapse even during periods of volatility.
Stability of SIP Investments: In recent times, there has not been a significant decline in SIP inflows. This means that investors are now more likely to maintain their investments for the long term rather than panicking and stopping their investments.

Rise of Passive Funds and ETFs in India

Growing Understanding of Index-Based Investing: Investors now want funds that track the market directly. This is why index funds and ETFs are becoming increasingly popular as simple and reliable investment options.
Cost-Conscious Investors: People are becoming more aware of expense ratios. Funds with lower fees offer greater returns in the long run, leading to increased demand for passive funds.
Performance Pressure on Active Funds: The popularity of passive funds is putting pressure on active fund managers to deliver better results. Fund selection is now based on performance rather than just brand name.
Increasing Number of New ETFs: The market is seeing a growing number of new ETFs based on various sectors and indices. This makes it easier for investors to choose options that suit their specific needs.
Easy Diversification Method: An ETF allows investment in multiple companies through a single instrument. This diversifies risk and helps maintain a balanced portfolio.

Distribution Channels and Technology

The Role of Direct Plans and Regular Plans: Today, investors buy mutual funds through two routes – Direct Plans and Regular Plans. Investors who prefer to do their own research choose Direct Plans, while those seeking guidance opt for Regular Plans and the assistance of advisors.
Digital Platforms and Mobile Apps: Mobile apps and online platforms have made investing incredibly easy. The entire process, from opening an account to making investments, can now be completed in just a few minutes.
Financial Advisors and the Hybrid Model: Many investors are now adopting a hybrid model, rather than relying solely on digital platforms or financial advisors. This model combines the benefits of technology with personalized human advice.
Automation and Portfolio Monitoring: Features such as Auto SIP, auto-rebalancing, and portfolio tracking have made it easier for investors to monitor their investments continuously and make more informed decisions.

Regulatory Support and Industry Framework

SEBI’s Role: SEBI has played a crucial role in making the mutual fund industry organized and secure. Regulations mandating clear disclosure of fund information, expenses (expense ratio), and risks help investors make informed decisions. This fosters trust in the industry.
AMFI’s Contribution: Investor Education: AMFI has launched several campaigns to educate investors, such as “Mutual Funds Sahi Hai” (Mutual Funds are Right). These efforts have helped people understand the benefits, risks, and proper ways to invest in mutual funds.
Impact of Regulations: Trust and Stability: New regulations and improved oversight have increased the industry’s credibility. Investors now have the confidence that their money is being invested within a safe and regulated system.

Challenges and Risks Facing the Industry

Market Volatility: When the stock market fluctuates, it impacts the returns of mutual funds. During market downturns, many investors panic and stop investing.
Impact of Interest Rates: Changes in interest rates affect the value of debt funds. Sudden changes can lead to losses for investors.
Over-concentration in Sector Funds: Some investors invest heavily in funds of a single sector. This reduces diversification and increases risk.
Lack of Patience During Market Downturns: Many investors stop their SIPs (Systematic Investment Plans) when the market falls, disrupting their long-term investment plans.
Challenges in Distribution and Advice: The pressure to keep costs low makes it difficult to provide sound advice and deliver information effectively to investors.

Conclusion

The landscape of mutual funds in India has changed significantly in recent years. Today, investing is no longer limited to large cities or wealthy investors. SIPs (Systematic Investment Plans) and online platforms have connected ordinary people to the market. In the future, this increased participation will become the true strength of the industry and make investing even more accessible.

As the mutual fund industry continues to grow, investors can access ETFs, mutual funds, and Asset Management Companies (AMCs) through Pocketful, offering zero brokerage on delivery and mutual funds via a seamless, easy-to-use platform.

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10	What is Solution Oriented Mutual Funds?

Frequently Asked Questions (FAQs)

What is the current size of the mutual fund industry in India?
The total AUM (Assets Under Management) of the mutual fund industry in India has crossed ₹80 lakh crore.
What factors are driving the growth of mutual funds in India?
SIP investments, digital investment platforms, and increasing financial awareness are the main reasons.
Why are passive funds and ETFs gaining popularity?
Because they have lower costs and directly track market indices.
Is mutual fund investment increasing in Tier-2 and Tier-3 cities?
Yes, the participation of new investors from smaller cities is continuously increasing.
What is the future of mutual funds in India?
In the long term, the industry is expected to expand further due to SIPs and passive funds.

February 9, 2026

Best Venture Capital Books for Investors and Startup Founders

Venture capital is not just a buzzword in the startup ecosystem. But this is a way to get finances that can help businesses with growth and innovation. You may be an aspiring VC, a startup founder who has raised funds, or just a financial professional looking at alternative investments, but you must understand venture capital.

The best method to develop this insight is by reading books by successful investors, founders, and industry observers. The right venture capital books are the books that make you crack the investor mind, see how deals work, how portfolio choices are made, and how to avoid the pitfalls which are leading to fundraising.

This blog provides the best venture capital books, selected by those individuals who are interested in reading about practical topics in venture capital investments, start-up funding, and innovation funding.

What Is Venture Capital?

Venture capital is money invested in startups that are still growing or trying to scale. This is the money that is invested by professional investors. These are the people who are ready to take the risks in return for the future growth expectations.

Key Features

Invested in early or fast-growing businesses.
Provided in exchange for the company equity.
The aim is long-term growth.
Involves high risk and high return potential.
Investors often guide founders and strategy.
Returns come through IPOs or company sales.

List of Best Venture Capital Books

Knowing what venture capital is only the starting point. To really understand what venture funding is and how it works, you can read these books by experts. These not only define the same but also share deeper insights into the same.

S.No	Book Name	Publishing Year	Author	Rating (Goodreads)	Best For
1	Venture Deals	2011	Brad Feld & Jason Mendelson	4.12	Understanding VC term sheets
2	Secrets of Sand Hill Road	2019	Scott Kupor	4.23	Learning how VCs think
3	The Power Law	2022	Sebastian Mallaby	4.42	Understanding VC economics
4	The Entrepreneurial Bible to Venture Capital	2013	Andrew Romans	3.68	Startup fundraising guidance
5	Venture Capital and the Finance of Innovation	2006	Andrew Metrick & Ayako Yasuda	4.09	VC finance fundamentals

1. “Venture Deals” by Brad Feld & Jason Mendelson

Venture Deals is widely regarded as one of the best books on venture capital investing because it focuses on how funding works in real situations. Instead of theory, it discusses the practice of such things as term sheets, valuations, dilution, board control, and exit clauses. The authors simplify complicated legal and financial language in a readable manner which makes the book particularly handy when a first-time founder is raising capital or a person intending on having a clear understanding of a venture capital deal.

What You Will Learn

Venture capital term sheets
Vesting, liquidity preferences, and economic dilution
Standard approaches to investor negotiation
How can the founders protect their interests

Why This Book Is Worth Reading

The fundraising founders are many and do not understand the specifics of an agreement before they get involved in fundraising. Reading this book equips an individual with the knowledge that one ought to be capable of negotiating and preventing errors that can occur in the long run. This book is not about investing public market capital. It is about venture financing mechanics.

2. “Secrets of Sand Hill Road” by Scott Kupor

Secrets of Sand Hill Road provides an opportunity to peek inside venture capital firms and understand their way of thought and business. The book is written by a long-time VC and it explains how investors assess start-ups, design funds, risk management, and when to exit. It puts a lot of emphasis on the mindset, incentive, and decision-making and not the deal terms. This qualifies it to be one of the best venture capital books for founders who seek to know more about the behaviour of investors and how they can balance their pitch, their growth strategies, and their expectations with the actual manner in which venture capital operates.

What You Will Learn

The structure of venture capital funds
VCs are interested in founders and business models
The reasons behind failures and risk management in most startups
How to match the goals of start-ups with the expectations of investors

Why This Book Is Worth Reading

When the founders pitch, in many cases, they are not aware of the limitations and motivations of venture capital firms. This is the gap in knowledge that is filled in this book.

3. “The Power Law” by Sebastian Mallaby

The Power Law describes the logic of venture capital, which is a winner-takes-most phenomenon in which a small group of successful startups earns most of the returns. The book demonstrates how risk, timing, and conviction influence the outcome in this industry using detailed accounts of some of the well-known venture capital firms and investors. Instead of being deal mechanics-oriented, it examines the development of venture capital and its effects on innovation. This has rendered it one of the best venture capital books in grasping the importance of patience, taking big risks, and being long-term in investing in a startup.

What You Will Learn

The reason why venture capital portfolios are based on outlier successes
The distribution of risk amongst the investments
VCs history: the development of the venture capital sector
Successful and failed startups lessons

Why This Book Is Worth Reading

The book gives more insight into venture capital economics and why failure is a normal and believed component of the ecosystem.

4. “The Entrepreneurial Bible to Venture Capital” by Andrew Romans

Entrepreneurial Bible to Venture Capital is dedicated to founders who desire to have a founder-friendly perspective of venture capital. The book presents the steps of raising funds step by step, including what to prepare before holding investor meetings and negotiating term sheets, as well as managing investor relationships after funding. It dwells upon practical issues entrepreneurs have to undergo, including the pressure to value, dilution, control, and raising it at the right moment. It has been written in a direct and experience-oriented manner and it is a practical guide to the start-up founders who are going through venture capital locking venture capital in the first instance.

What You Will Learn

Equity financing: How to prepare your start-up
Pitching to venture capitalists
The VCs and the angel investors differed
Scaling after financing

Why This Book Is Worth Reading

Venture capital is daunting and confusing to first-time founders. The book streamlines the process and offers realistic and practical advice.

5. “Venture Capital and the Finance of Innovation” by Andrew Metrick

Venture Capital and the Finance of Innovation is frequently listed as one of the best books on venture capital investing to read by anyone who seeks a more financial perspective of the VC world. The book describes the structure of venture capital funds, risk and returns management, as well as the alignment of incentives between founders and investors. It is more analytical and scholarly than books that are founder-focused, and thus can be of particular use to people in the field of finance, students and serious investors with a strong interest in a sound theoretical base of venture capital.

What You Will Learn

Venture capital funds and their fundraising and deployment
Valuation methods of startups
Venture investing risk-return dynamics
Venture capital case studies in the real world

Why This Book Is Worth Reading

The book can be suggested to those who would like to get a proper background of venture capital finance, in particular, finance professionals and MBA students.

Why Should One Read Venture Capital Books?

Reading a venture capital book helps you understand how capital really behaves when risk is high and outcomes are uncertain. Venture capital is not just about funding startups; it is about incentives, power laws, timing, and decision-making under extreme uncertainty. These books explain why most startups fail, why a few succeed spectacularly, and how investors think about risk, control, and returns. For founders, this knowledge prevents costly mistakes. For investors and students, it builds mental models that apply far beyond startups. You stop seeing success as luck and start seeing the structure beneath it.

Conclusion

At the nexus of innovation, finance, and long-term planning is venture capital. A solid grasp of the fundamentals of venture capital is important, whether you are a founder getting ready to raise capital or an investor looking at high-growth prospects.

From deal structures and negotiations to investor mindset and fundraising strategy, the books on this list present a variety of viewpoints. When combined, they improve your ability to think clearly and make wise decisions.

You won’t become a venture capitalist overnight by reading alone, but it will help you ask better questions and steer clear of common pitfalls. Knowledgeable thinking is a true advantage in a startup ecosystem that is changing quickly. To continue learning about investing and growth strategies, explore expert-led content on Pocketful.

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11	Best Personal Finance Books
12	Best Psychology of Money Books to Read
13	Best Wealth Creation Books
14	Best Retirement Books for Smart Financial Planning

Frequently Asked Questions (FAQs)

What is the best venture capital book you would recommend to beginners?
Venture Deals is regarded as one of the most helpful venture capital books to start with since it covers the complicated concepts in a simple and practical manner.
Do startup founders find venture capital books helpful?
Yes, lots of books on venture capital are composed for people who are founders directly and guide them on how to know how to raise money, valuation, and fund expectations.
Do venture capital books require a finance background?
No. Although there are books that are finance-related, the majority of them can be read by a reader who does not in a formal financial background.
Will reading venture capital books make me a VC?
These books are good background knowledge, although in the process of becoming a venture capitalist, it require practical experience, networking, and exposure to a deal.
Do venture capital books apply beyond the US?
Yes. Despite the numerous examples of Silicon Valley, the principles of venture capital are universal, and they exist even in the emerging markets.

February 9, 2026

Best Psychology of Money Books to Read in 2026

Most financial mistakes stem not from a lack of knowledge, but from flawed thinking and behavior. Even high earners often struggle with saving, investing, and spending because they lack the right money mindset. This is why understanding money psychology is crucial today. In this blog, we’ll share a practical list of the best psychology of money books that can transform your perspective on managing your finances.

10 Best Psychology of Money Books

The Psychology of Money – Morgan Housel
Thinking, Fast and Slow – Daniel Kahneman
Rich Dad Poor Dad – Robert Kiyosaki
Your Money or Your Life – Vicki Robin
The Millionaire Next Door – Thomas J. Stanley & William D. Danko
The Richest Man in Babylon – George S. Clason
Atomic Habits – James Clear
Misbehaving – Richard Thaler
The Intelligent Investor – Benjamin Graham
Thinking in Bets – Annie Duke

1. The Psychology of Money

The Psychology of Money is a book that explains human behavior more than it explains money itself. Morgan Housel argues that financial mistakes are mostly due to wrong reactions and habits, rather than a lack of knowledge. The book clarifies why people have different financial outcomes even with similar incomes. The author’s central message is that wealth is built through time, patience, and discipline, and that luck and risk cannot be ignored in investing.

Information	Description
Author	Morgan Housel
The book’s focus	Money mindset, behavior and decision-making
Who is it useful for?	From beginners to long-term investors
Main topic	Saving, patience, risk, luck and habits

Why should you read this book?

If you panic when the market falls, or if you’re always looking for quick ways to make money, this book will give you a practical and balanced perspective.

What will you learn from this book?

Money decisions are influenced more by emotions than logic.
Long-term thinking is the foundation of wealth.
Understanding risk and luck is crucial.
Simple habits are what truly make the difference.

2. Thinking, Fast and Slow

Thinking, Fast and Slow explains how we make financial decisions and where we go wrong. Daniel Kahneman explains that our minds think in two ways—one fast and emotional, the other slow and logical. Most financial losses occur when we react quickly and don’t take the time to think. The book clarifies that biases such as fear, overconfidence, and loss aversion affect both investing and spending.

Information	Description
Author	Daniel Kahneman
The book’s focus	Decision-making and behavioral psychology
Who is it useful for?	Investors, professionals, serious readers
Main topic	Biases, risk, judgment errors

Why should you read this book?

If you tend to make hasty financial decisions or make mistakes during market volatility, this book will teach you a better way to think.

What will you learn from this book?

Hasty decisions lead to greater losses.
Emotions impair investment decisions.
Slow and rational thinking is crucial for managing money.
Identifying biases helps in achieving long-term success.

3. Rich Dad Poor Dad

Rich Dad Poor Dad essentially raises the question of how we think about making money. The book explains that most people depend on a salary their entire lives, while some focus on building assets from the start. The author explains in simple language that hard work isn’t enough unless the money is invested wisely.

Information	Description
Author	Robert T. Kiyosaki
The book’s focus	Money mindset and financial education
Who is it useful for?	Beginners and working professionals
Main topic	Assets vs Liabilities, cash flow, mindset

Why read this book?

If your income is increasing but you’re not building savings and wealth, this book can help you change your mindset.

What can you learn from it?

Salary and wealth are not the same thing.
Focusing on assets is beneficial in the long run.
Understanding money is just as important as earning it.

4. Your Money or Your Life

Your Money or Your Life is a book that focuses less on making money and more on why and at what cost we earn it. Vicki Robin explains that every expense is linked to our time and energy. The book attempts to shift the perspective that earning more is the only measure of success, emphasizing instead the importance of using money wisely.

Information	Description
Author	Vicki Robin
The book’s focus	Money-life balance and conscious spending
Who is it useful for?	Salaried professionals and long-term planners

Why read this book?

If you earn money but still experience financial stress, this book teaches you how to create the right balance between money and life.

What will you learn?

Spending should be done thoughtfully.
Money is connected to our time and energy.
Financial clarity improves quality of life.

5. The Millionaire Next Door

The Millionaire Next Door shatters the glamorous image of wealthy people. Based on long-term data-driven surveys, the authors show that most wealthy individuals don’t indulge in ostentatious displays of wealth, but rather believe in a simple lifestyle and controlled spending. The book makes it clear that a high income is not a guarantee of wealth; the real difference lies in saving habits and financial discipline.

Information	Description
Author	Thomas J. Stanley & William D. Danko
The book’s focus	Real wealth habits and spending behavior
Who is it useful for?	Salaried professionals and long-term savers

Why read this book?

If you feel that despite earning more, your money isn’t lasting, this book shows the practical reality of how wealth is actually created.

What will you learn?

Income and wealth are not the same thing.
Lifestyle inflation is the biggest enemy of wealth.
Consistent saving leads to long-term success.

6. The Richest Man in Babylon

The Richest Man in Babylon uses stories to explain money, but its principles are just as practical today. The book emphasizes that the habit of saving and managing money should be developed before focusing on earning it. The author shows that wealth isn’t created overnight, but rather built gradually through small, disciplined decisions.

Information	Description
Author	George S. Clason
The book’s focus	Saving mindset and money discipline
Who is it useful for?	Beginners and long-term investors
Main topic	Saving rules, wealth habits, discipline

Why read this book?

If you want to strengthen your personal finance basics and understand money principles without confusion, this book is perfect.

What will you learn?

It’s essential to save a portion of your income.
You should learn to protect your money before trying to grow it.
Discipline and patience are the foundation of wealth.

7. Atomic Habits

Atomic Habits doesn’t teach money-making tricks; instead, it explains why good financial habits don’t stick. James Clear clearly explains that people don’t give up on saving or investing because they lack understanding, but because their daily routine doesn’t support these habits. The book makes the point that wealth is built gradually just like habits are formed.

Information	Description
Author	James Clear
The book’s focus	Daily habits and behavior
Who is it useful for?	People who want consistency in saving and investing

Why read this book?

If you make plans every month but fail to follow through, this book teaches you how to practically build habits.

What are the key takeaways?

Small habits yield long-term results.
Routine is more effective than motivation.
Consistency is the real key to financial growth.

8. Misbehaving

Misbehaving is a book that explains why people don’t behave rationally when it comes to money. Richard Thaler shows that real-life decisions are driven by habits, emotions, and mental shortcuts, rather than pure logic. Using simple examples, the book illustrates why traditional economics often fails to reflect reality and why understanding human behavior is crucial.

Information	Description
Author	Richard H. Thaler
The book’s focus	Behavioral economics and real money behavior
Who is it useful for?	Investors, finance learners, practical thinkers

Why read this book?

If you think that finance theory isn’t practical in real life, this book shows the true picture of money decisions.

What will you learn?

People aren’t always rational.
Small biases can lead to big losses.
Understanding behavior leads to better financial decisions.

9. The Intelligent Investor

The Intelligent Investor advises viewing investing not as an exciting activity, but as a disciplined process. Benjamin Graham emphasizes that sticking to your strategy is more important than reacting to market fluctuations. The book teaches how to set aside emotions and focus on value and margin of safety.

Information	Description
Author	Benjamin Graham
The book’s focus	value investing
Who is it useful for?	Investors, Long Term Investors, risk-takers

Why read this book?

If you panic when the market falls or chase quick returns, this book teaches calmness and patience in investing.

What will you learn from it?

Emotions are the biggest enemy of investing.
Long-term thinking reduces risk.
Discipline and patience are more important than returns.

10. Thinking in Bets

The book “Thinking in Bets” teaches that financial decisions should be based on probability, not certainty. Annie Duke explains that even a correct decision can lead to a bad outcome, and sometimes a wrong decision can yield a positive result. Therefore, the focus should be on the decision-making process, not the outcome. The book specifically explains how accepting uncertainty makes money decisions more balanced and practical.

Information	Description
Author	Annie Duke
The book’s focus	Decision-making mindset and probability thinking
Who is it useful for?	Investors, professionals, risk-takers

Why read this book?

If you blame yourself after losses or become overconfident after gains, this book will change your perspective.

What will you learn?

Every financial decision is like a bet.
The process is more important than the outcome.
Accepting uncertainty is crucial.
Better thinking leads to better long-term financial results.

How were these books selected?

Focus on Practical Money Behavior: This list includes books that explain real-life money decisions, habits, and mindset in simple language, not just abstract theory.
Trusted Authors and Proven Concepts: The books are by authors whose work in finance and behavioral psychology is widely respected and whose ideas are time-tested.
Useful for Both Beginners and Investors: The selection ensures that the content is simple enough for beginners and also provides value to experienced investors.
Long-Term Relevance: The books chosen offer lessons that are tied to human behavior, not market trends lessons that remain relevant over time.

Conclusion

The right way to understand money doesn’t start with numbers, but with mindset. The psychology of money books mentioned in this blog teach that long-term wealth is built through discipline, patience, and the right behavior. If you want to improve your financial decisions, starting with one of these books can make a significant difference in your money journey.

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Frequently Asked Questions (FAQs)

Which psychology of money books is best to start with?
The Psychology of Money is a good option to start with, as it explains the psychology of money in simple language.
Do these books really help in managing money better?
Yes, these books help in understanding the role of emotions and habits in financial decisions.
Are psychology of money books useful for investors?
Yes, these books teach investors how to avoid panic and overconfidence.
Can salaried people benefit from these books?
Absolutely, these books help salaried individuals strengthen their saving and spending mindset.
Do I need finance knowledge before reading these books?
No, most psychology books are written for beginners.

February 8, 2026

Best Gold Investment Schemes in India 2026

For many Indian households, gold savings do not start with charts or returns. It usually starts with a simple thought. We should keep something aside for the future. In 2026, that habit is still strong, but the options look very different. Instead of only buying jewellery once a year, people are now trying to understand which gold scheme is best for regular and stress-free saving.

At the same time, the idea of a planned approach is growing. The best gold saving scheme today is not about show or tradition alone. It is about control, clarity, and peace of mind. Whether it is a monthly gold plan or a long-term savings option, investors now want flexibility and transparency. That is exactly what modern gold schemes aim to offer.

Why You Should Invest in Gold in 2026

Gold works as a support asset in your overall plan. It helps manage risk, supports future goals, and gives flexibility when markets feel unstable. While you might think about why you should be investing in gold in 2026, there are certain reasons that work in favour of the same. These include:

1. Protection Against Inflation

Inflation quietly reduces the value of money every year. What feels enough today may not be enough after five years. Gold has historically helped preserve value over time. This is why it is still considered to be an investment that can help you during inflation.

2. Lower Risk in Your Investment Portfolio

Markets do not move in a straight line. When equities fall or remain volatile, gold often stays stable. Adding gold reduces dependence on one asset and helps smooth overall returns, especially during uncertain market phases.

3. Helps With Planned Life Expenses

Gold is often linked to important life events in India. Saving through a monthly gold scheme allows you to plan expenses gradually instead of arranging money at the last moment. This makes long-term goals easier to manage.

4. Easier and More Flexible Than Before

In 2026, you can invest in gold in various ways. There is no longer a need to buy physical gold. Monthly and digital options allow small investments, clear tracking, and easy redemption. This makes it easier to choose the best gold savings scheme without complexity.

Types of Gold Saving Schemes in India

Gold saving schemes in India exist for different reasons. You will find not just the jewellery plans in the market but also various other plans. Some of these are run by the government, while others are run by the banks or mutual fund management companies. Based on the same, the types of the gold savings scheme available are:

1. Jewellery Gold Saving Schemes

Jewellery gold saving schemes are mainly meant for people who already know they will buy gold jewellery in the future. You commit to a fixed monthly amount for a specific period, usually 10 to 12 months. At the end of the tenure, the accumulated value is used to buy jewellery from the same brand. These schemes often offer a small benefit like a bonus month, but making charges and design costs still apply. They are not ideal if your goal is pure investment.

Jewellery Brand	Scheme Name	Monthly Payment	Tenure	Maturity Benefit	Redemption Type
Tanishq	Golden Harvest	Fixed monthly amount	10 months	One month installment as bonus	Jewellery purchase only
Malabar Gold	Golden Bloom, Golden Glow, Golden Bliss	Fixed monthly amount	11 months	Discount on making charges up to 18%	Jewellery purchase only
Kalyan Jewellers	Gold Savings Scheme	Fixed monthly amount	11 months	Discount on gold or membership charges	Jewellery purchase only
Joyalukkas	Easy Gold Scheme	Fixed monthly amount	10 months	Discount on making charges	Jewellery purchase only
TBZ	Kalpavruksha Plan	Fixed monthly amount	10 months	Discount on making charges	Jewellery purchase only
PC Jeweller	Jewels for Less Scheme	Fixed monthly amount	12 months	Bonus installment benefit	Jewellery purchase only

2. Digital Gold

Digital gold is a flexible option for people who want to save in gold without buying jewellery immediately. You can invest small amounts whenever you want and the gold is stored safely on your behalf. The value moves with gold prices, and you can sell it online or convert it into physical gold later. This option suits people who want liquidity and ease, but it may include platform charges.

3. Sovereign Gold Bonds

Sovereign Gold Bonds are issued by the Government of India and are linked to gold prices. Along with price appreciation, they also pay a fixed interest every year. These bonds are best suited for long-term investors. There is a lock-in period with these funds. While this is true, the growth and returns offered by the SGBs are great, making them a desirable choice for investors.

SGB Issue Price History for 2023–24

Series	Issue Month	Price per Gram (₹)
Series 1	June 2023	5,926
Series 2	September 2023	5,923
Series 3	December 2023	6,199
Series 4	February 2024	6,263

4. Gold Mutual Funds and ETFs

Gold mutual funds invest in gold ETFs on your behalf. This option is useful for people who want gold exposure but are not looking to manage the same. The fund offers growth of the gold but at the same time better safety. There is an option to invest through SIP as well, which allows you to invest small sums with no hassle. This makes it a perfect choice for many.

The options available for you to invest are listed as below.

Gold ETF Name	NAV (₹)	AUM (₹ Cr)	1Y Return (%)	5Y Return (%)	Expense Ratio (%)	Tracking Error (%)
Nippon India ETF Gold BeES	131.12	39,901	91.08	198.20	0.80	0.24
HDFC Gold ETF	136.26	18,488	91.38	161.59	0.59	0.28
ICICI Prudential Gold ETF	139.62	17,769	98.07	223.87	0.50	0.21
SBI Gold ETF	136.4	17,400	93.83	210.07	0.70	0.24
Kotak Gold ETF	130.15	12,162	89.58	200.02	0.55	0.28
Axis Gold ETF	130.28	3,895	86.46	204.46	0.56	0.25
UTI Gold ETF	132.85	3,282	91.29	201.79	0.51	0.16
ABSL Gold ETF	144.42	2,070	97.05	204.04	0.47	0.25
Mirae Asset Gold ETF	155.3	2,061	91.80	161.45	0.35	0.36

The table is for educational purposes only. Please check the details before you plan to invest.

Which Gold Saving Scheme Is the Best in 2026

There is no single best gold savings scheme for everyone. The right option depends on why you are saving in gold. Many people make mistakes by choosing a scheme based on popularity. This is wrong. You should focus on your goal.

1. For Pure Investment and Long-Term Wealth

If your goal is returns, liquidity, and portfolio balance, Gold ETFs or Sovereign Gold Bonds work best. They are transparent, cost-efficient, and linked directly to gold prices. Jewellery schemes do not fit this goal.

2. For Monthly Disciplined Saving

If you want to invest small amounts regularly, digital gold and gold mutual funds are better options. They allow flexibility, easy tracking, and no pressure to buy jewellery at maturity.

3. For Wedding or Jewellery Purchase

If you already know you will buy jewellery, jewellery gold saving schemes make sense. They help you plan expenses in advance, but they should not be treated as an investment product.

4. For Safety and Low Risk

Sovereign Gold Bonds are the safest option since they are government-backed and also pay interest. They suit investors who can stay invested for the long term.

5. For Flexibility and Ease

Digital gold is best if you want freedom to buy, sell, or convert to physical gold anytime. It suits first-time investors and those who want simplicity.

Conclusion

The best gold saving scheme in 2026 is the one that matches your goal, not the one with the biggest name. Investment-focused buyers should look at ETFs or SGBs, while goal-based buyers can choose monthly or jewellery schemes. Platforms like Pocketful make it easier to compare options and invest in gold in a structured and informed way.

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Frequently Asked Questions (FAQs)

Which gold scheme is best for monthly savings?
Digital gold and gold mutual fund SIPs are better for monthly savings because they offer flexibility and easy tracking.
Which gold scheme is best for long-term investment?
Sovereign Gold Bonds and Gold ETFs are better suited for long-term investment goals.
Are jewellery gold saving schemes a good investment?
No. They are suitable for planned jewellery purchases, not for wealth creation.
Is digital gold safe in India?
Digital gold is safe if you use trusted platforms, but it may include platform charges.
Should I invest in gold in 2026?
Yes, gold still helps balance risk and protect value when used as part of a diversified portfolio.

February 7, 2026

10 Best Wealth Creation Books

Building wealth is not about chasing hot stocks. It is about doing a few simple things consistently over a long period: saving, investing wisely, managing risk, and keeping your emotions in check and before any of that comes knowledge.

That is where books play a massive role. The right wealth creation book does not just teach numbers; it reshapes how you think about money, success, and freedom.

In this guide, we have handpicked 10 of the best wealth creation books that cover mindset, investing, behaviour, and long-term financial independence. These books offer timeless lessons that compound just like money does.

What is Wealth Creation?

Wealth creation is the process of building assets that grow over time and generate income. This could include investments like equity, mutual funds, businesses, real estate, or any asset that compounds over time.

For example, earning ₹1 lakh a month is good. But investing part of that income regularly so it grows into ₹1 crore over time is wealth creation.

How do you Create Wealth?

Across all great wealth books, a few patterns repeat:

You spend less than you earn
You invest the difference consistently
You stay invested through ups and downs
You avoid emotional money decisions
You focus on the long term, not quick wins

List of 10 Best Wealth Creation Books

S. No.	Book Name	Year	Name of the Author	Rating (Goodreads)
1	Rich Dad Poor Dad	1997	Robert T. Kiyosaki	4.1
2	Think and Grow Rich	1937	Napoleon Hill	4.2
3	The Psychology of Money	2020	Morgan Housel	4.4
4	The Richest Man in Babylon	1926	George Samuel Clason	4.3
5	The Millionaire Next Door	1996	Thomas J. Stanley & William D. Danko	4
6	I Will Teach You to Be Rich	2009	Ramit Sethi	4
7	The Simple Path to Wealth	2016	J.L. Collins	4.3
8	Financial Freedom	2019	Grant Sabatier	3.9
9	Secrets of the Millionaire Mind	2005	T. Harv Eker	3.9
10	The Total Money Makeover	2003	Dave Ramsey	4.3

Overview of Wealth Creation Books

1. Rich Dad Poor Dad by Author – Robert T. Kiyosaki

This book is often the starting point for people who begin thinking differently about money. It shows lessons drawn from the two ‘dads’. The ‘poor dad’ values education and job security, a stable salary while the ‘rich dad’ focuses on financial literacy, assets and entrepreneurship.

Instead of focusing on salary and job security, Kiyosaki introduces the idea of assets vs liabilities.

The biggest takeaway is learning why financial education matters and why working hard alone does not guarantee wealth.

Many people upgrade their lifestyle with every salary hike. This book makes you pause and ask: Is this purchase helping me become free, or locking me into more expenses?

2. Think & Grow Rich by Author – Napoleon Hill

The author studied successful people and discovered that clarity of purpose, belief, and persistence were common traits among them.

It is about discipline, consistency, and long-term vision that investors badly need. The book highlights 13 steps to riches and explains that success comes from defined goals and not by chance or inheritance.

It should be read by someone who stays invested during market crashes, usually doesn’t panic because they believe in their long-term plan.

3. The Psychology of Money by Author – Morgan Housel

This book explains something most finance books ignore: money decisions are emotional, not mathematical. It highlights that ‘wealth is what you do not see, emphasising savings over consumption.

People do not fail financially because they do not understand returns. They fail because of fear, greed, impatience, and comparison. Housel shows how average investors can outperform smart ones simply by being patient and disciplined.

4. The Richest Man in Babylon by Author – George S. Clason

This book teaches money basics through short, memorable stories. Basically, it explains save before you spend, not the other way around.

The lessons are basic but powerful: saving regularly, investing carefully, and avoiding unnecessary debt.

The book summarizes financial success into easy rules: Pay yourself first, Control thy expenditures, Make your gold multiply and Guard your treasures from loss. These parables recommend saving discipline, careful investment and lifelong learning as secrets to success.

5. The Millionaire Next Door by Author – Thomas J. Stanley & William D. Danko

The book is a bestseller in the personal finance category. It breaks the myth that wealthy people live an extravagant life. Millionaires create a budget, live quietly, avoid debt, keep their investments align and do not chase appearances.

Based on the extensive surveys and interviews, the author analysed multiple households with more than $1 million. The core findings are that most US millionaires are self-made and work in modest professions

For example, a neighbour driving a basic car and living simply may be far wealthier than the person with luxury EMI commitments.

6. I Will Teach You to be Rich by Author – Ramit Sethi

This book is practical, modern, and action-oriented. Instead of extreme budgeting, the author focuses on automating savings, investments, and bills, and letting systems handle money. It was first published in 2009 and was updated in 2019.

The book is organised into a 6-week plan and simplifies financial concepts such as asset allocation and credit optimisation.

It can be a good read for beginners who have just started their work life.

7. The Simple Path to Wealth by Author – JL Collins

If you prefer simplicity over complexity, this book is gold. The book explains how ordinary people can build financial independence. It can be a good read for beginner to intermediate individual investors.

Collin wrote blog letters to teach his daughter about money management, debt, and surplus investment, which was later expanded into a book.

It promotes low-cost, long-term investing, especially through index funds, and staying invested regardless of market noise.

No timing. No stock tips. Just patience.

8. Financial Freedom by Author – Grant Sabatier

This book focuses on reaching financial independence faster than the traditional retirement path.

It talks about increasing income, reducing unnecessary expenses, and investing aggressively but intelligently. The book gained recognition in the FIRE (Financial Independence Retire Early) movement for its motivational approach.

The book focuses on three key factors that can help you achieve financial freedom far before retirement. These factors are increasing income, cutting expenses, and maximising investment growth.

9. Secrets of the Millionaire Mind by Author – T. Harv Eker

If you believe “money is bad” or “rich people are greedy,” your financial growth often stalls subconsciously. The book helps reset those beliefs.

It argues that long-term wealth and success primarily stem from one’s mind and attitude, rather than external factors, such as education.

The author encourages readers to build wealth through both active and passive income streams.

For example, someone who is afraid of investing due to past losses may avoid equity altogether, which can hurt long-term wealth and lead to a misguided perception that money is not lucrative.

10. The Total Money Makeover by Author – Dave Ramsey

This book is ideal for people struggling with debt or poor money habits. It emphasizes budgeting, emergency funds, and step-by-step discipline before aggressive investing. You cannot build wealth if you have a weak foundation.

The book’s signature structure, seven “Baby Steps”, helps readers from emergency savings to wealth building.

The framework and structure of the book have made it a bestseller in personal finance literature. Over 5 million copies of this book have already been sold.

Conclusion

Wealth creation comes from many small, sensible choices made again and again, saving a little more each month, staying invested during volatile market phases, and avoiding impulsive financial moves.

That is what makes these books so valuable. They do not promise shortcuts or overnight riches. Instead, they help you build the right thinking patterns, money habits, and long-term perspective required to grow wealth steadily.

Reading just one good book may not change your finances instantly, but applying even one idea can help you compound into something meaningful over time.

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Frequently Asked Questions (FAQs)

Are wealth creation books a good fit for individuals?
Yes. Many wealth books start with basics like saving, budgeting, and mindset, making them ideal even for people with no prior financial knowledge.
Would people like to read wealth creation books?
Yes. Most wealth books begin with the introductory concepts such as saving, budgeting and mentality, and hence are perfect even to individuals who have no previous financial knowledge.
Will reading books be sufficient to create wealth?
Books are a means of knowledge and understanding, but it is through continuous action, investing, and disciplined behaviour that wealth is created by putting ideas into practice.
Are these books relevant for Indian investors?
Yes. While examples may be global, the core principles of saving, investing, compounding, and discipline apply universally, including in India.
Should I read all wealth creation books or just one?
You do not need to read them all at once. Start with one book that matches your current financial stage and gradually expand your learning.

February 6, 2026

How to Build a Portfolio With Exchange-traded Funds (ETFs)

The financial market is a volatile market across the globe with major price swings that are driven by inflation, interest rates, and geopolitical tensions. For most of the investors that are looking to pick the market winners or at times when the market has become increasingly difficult, ETFs (exchange traded funds) turn out to be a simple way to stay invested where the risk is also spread and diversification is also maintained.

During these circumstances building a resilient investment portfolio matters more than just trying to time the market or chase the latest trend. You, being an investor, shall focus on diversification, risk management, and how to remain invested without constantly reacting to headlines.

This is where exchange-traded funds, or ETFs, come in the picture. ETFs allow investors to spread their money across entire markets, sectors, or asset classes through a single investment. They offer flexibility, transparency, and cost efficiency, making them a practical tool for navigating volatile markets while keeping a long-term focus.

In this blog we will explain how to build a reliable portfolio with ETFs, why investors shall diversify their portfolio and how a well structured ETF portfolio can help you to be disciplined and invested through changing market conditions.

What are ETFs?

Exchange traded funds are a collection of investments that are identical to investments such as equities or bonds. Exchange-traded funds help you to invest in a large number of securities at once. In this you are not owning dozens or hundreds of individual stocks or funds directly rather you own a smaller number of ETFs that can track the real market, sectors, region and even the asset class of these funds.

ETFs have multiple investments pooled in them from where a global equity ETF may include shares of thousands of companies from developed and emerging markets of the globe. A bond ETF may have government and corporate bonds with varying maturities and credit qualities of the fund.

The main factor of an ETF portfolio is efficiency, by opting for good funds investors can achieve broad exposure to the global markets, balance risk and return, and keep costs under control of your portfolio.

ETFs are also flexible in nature as they trade on stock exchanges throughout the day, just like shares, which makes them easy to buy and sell. Many ETFs are rules-based and track transparent indices, so that you can know what you are owning and its characteristics.

For investors that are looking for long-term investment, an ETF portfolio provides a structured way to stay invested, avoid unnecessary complexity, and focus on strategy rather than short-term market noise.

How to Build an ETF Portfolio

Building an ETF portfolio does not require advanced financial knowledge, but it does require clear thinking and discipline. The goal is to create a portfolio that matches your objectives, time horizon, and tolerance for risk.

Step 1: Define Your Investment Goal

Investors shall have clarity regarding their portfolio and its future. Maybe you are investing for retirement in 30 years. A deposit in 10 years, or generally accumulation of wealth with no fixed time line.

The main point starts with your goal as everything is influenced by it, including how much risk you want to take and how aggressively investments can be done. For instance, if you stay invested for 15 or more years then it allows high exposure to equities while shorter time horizons often calls for more stability.

Step 2: Assess Your Risk Tolerance

An investor shall know regarding how much volatility can be handled and how much risk can be tolerated expected. Some investors are comfortable with large swings in portfolio value with more risk appetite, while others prefer smooth and easy returns even if that means lower long-term growth.

In ETFs you can adjust your risk by putting a mix of different asset classes. Equity ETFs are more volatile in nature but they offer a higher return over time on the other hand Bond ETFs are generally more stable but they grow at a slower pace. A realistic assessment of your risk tolerance can help in avoiding panic selling during a falling market scenario.

Step 3: Choose Core Asset Classes

ETF portfolios are generally built around some core asset classes like equities, bonds, cash or cash-like instruments and additional options like real estate, commodities or alternatives. Equities are the main growth engine of ETFs whereas bonds help in reducing volatility and provide income. The balance here depends upon your end goal and risk appetite.

Step 4: Select Broad, Low-Cost ETFs

For most investors, broad-market ETFs can build a good foundation. These funds monitor big indices and offer exposure to many securities at once. While comparing ETFs, investors shall always look at the expense ratio, index tracked, fund size and liquidity as well as the replication method that is used either physical or synthetic.

One shall always keep a check as lower costs of the funds over a long term can affect the portfolio, even a small cost change can accumulate and make an impactful impact on returns.

Step 5: Decide on Asset Allocation

As an investor you should sensibly allocate the percentage of your portfolio invested in each asset class. Although there is no single correct allocation strategy, you can allocate 60% to equity and rest can be diversified as per your future goal. The main thing that matters is that it shall fit your situation and that you can stick to it in the changing market scenarios.

Once you have properly allocated your resources, ETFs can be easily implemented and maintained.

Step 6: Rebalance Periodically

Over time, market movements will cause your portfolio to drift away from its original allocation. Rebalancing means selling assets that have grown beyond their target weight and buying those that have fallen behind. This helps control risk and encourages disciplined investing. Many investors rebalance once or twice a year.

Types of ETFs

Index ETFs: In these funds a specific index is tracked.
Fixed Income ETFs: In these funds you get exposure to different types of bonds.
Sector focused ETFs: These funds are designed to track a specific industry or sector like oil, medicines, or technology.
Commodity ETFs: In this price of specific commodities like gold, oil or corn is tracked.
Leveraged ETFs: In these funds leverage is used to boost the returns.
Alternative investment ETFs: In this it allows investors to trade volatility or gain exposure to specific strategies, such as currency carry or covered call writing.
Style ETFs: In this the fund mirrors a specific investment style or market size focus, like large-cap value or small-cap growth.
Foreign market ETFs: In this the fund monitors non-Indian markets, such as Japan’s Nikkei Index or Hong Kong’s Hang Seng Index.
Inverse ETFs: Tracks profit from a drop in the underlying market or index.

Diversified of your ETF Portfolio

Diversification is considered as one of the important principles of investing. For you it means putting your money across different assets so that no single asset exposure can dominate your portfolio. A diversified ETF portfolio helps in reducing the impact of a poor performing asset of one sector on your portfolio while you still are invested in the overall market.

1. Diversification Across Asset Classes

Different asset classes have different behaviour in various economic environments. Equities may have a good performance during periods of economic growth, while bonds are the one that often provide stability during market downturns.

Diversifying your investment and holding both of these can smooth overall returns and even reduce the risk of your portfolio.

2. Geographic Diversification

Markets of different regions do not move in a specific sync, sync, portfolio concentrated in one country may suffer if the economy of a country struggles, even if global markets are doing well.

Global and regional ETFs allow investors to spread exposure across developed and emerging markets of the globe. This reduces dependence on any single economy or political system, giving you a more stable portfolio.

3. Sector Diversification

Within equities, diversification across sectors is also an important part as it reduces the dominance of a specific sector and its growth. Technology, healthcare, financials, and consumer goods all respond differently to interest rates, regulation, and economic cycles.

Broad equity ETFs typically provide sector diversification automatically and sector-specific ETFs can be added deliberately, but they increase concentration risk if they are overused.

4. Diversification Within Bonds

Bond ETFs can differ extensively based on issuer, maturity, and credit quality. Government, corporate, and inflation-linked bonds, all play a different role.

To manage interest rate risk and credit risk, a diversified bond allocation can help more effectively.

Consider a simplified example of a diversified ETF portfolio designed for a long-term investor with moderate risk tolerance, to make these ideas more concrete.

This following example is just an illustration and not a recommendation.

Example of a Diversified Portfolio Allocation

60% Equities, 35% Bonds and 5% Alternatives or cash-like assets

Equity Component (60%)

40% Global developed market equity ETF: This will provide exposure to large and mid-sized companies from North America, Europe, and other developed markets.

15% Emerging market equity ETF: This will add the potential for growth from fast-growing economies, along with high volatility.
5% Small-cap equity ETF: This can offer high long-term growth but is more volatile. A modest allocation can result in effective diversification.

Bond Component (35%)

20% Global/domestic government bond ETF: Government bonds can act as a buffer during equity market declines and tend to be more stable
10% Investment-grade corporate bond ETF: With moderate additional risk, corporate bonds offer higher yields than government bonds.
5% Inflation-linked bond ETF: These bonds can help protect the purchasing power if inflation rises.

Alternatives or Cash (5%)

5% Real estate ETF or short-term bond ETF: Real estate ETFs can provide income and effective diversification, whereas short-term bonds or cash-like ETFs can offer liquidity and stability over time.

Why is this Portfolio Is Diversified

This portfolio spreads risk across multiple asset classes across different regions, spread across various sectors and company sizes and covers different types of bonds.

No single ETF dominates this portfolio. Each component plays a specific role, and together they tend to balance growth and stability over time.

Dividends: Do ETF investors receive them?

Yes, ETF investors also benefit from companies that pay dividends. These dividends are a portion of a company’s earnings that are allocated to its investors. ETF shareholders receive a share of the earned interest or dividends and may also get a residual value if the fund is liquidated.

Common Mistakes to Avoid When Building an ETF Portfolio

One common error is overcomplicating the portfolio. Holding too many ETFs with overlapping exposure can make the portfolio harder to manage without effective diversification.

Another common mistake is chasing recent performance. Buying ETFs simply because they have done well recently often leads to buying high and selling low.

Ignoring costs is also a problem. High fees can reduce long-term returns over time as it can be compounded over many years.

Also, failing to rebalance can allow risk to creep into the portfolio, specially after strong equity market rallies.

Conclusion

Building a portfolio with ETFs, is one of the most accessible and effective ways to invest in today’s markets. ETFs offer diversification, transparency, and cost efficiency in a way that suits both beginners and experienced investors in the long run.

The goal is not to find the perfect ETF, but create a clear plan or a path, choose broad and reliable funds, and stay disciplined over time. A well-structured ETF portfolio can result in investing through the market’s ups and downs while you work steadily toward your financial goals.

If you focus on effective diversification, keep your costs low, and align your portfolio with your personal objectives, ETFs can become a powerful foundation for you for long-term investing.

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Frequently Asked Questions (FAQs)

Can beginners build a portfolio using only ETFs?
Yes, beginners can create a complete investment portfolio using only ETFs because they provide built-in diversification across different assets with lower costs and simpler management.
Is it better to invest in one ETF or multiple ETFs?
Investing in multiple ETFs can help spread risk across asset classes and regions, while relying on just one ETF may limit diversification.
How do market ups and downs affect an ETF portfolio?
Market fluctuations can impact ETF prices in the short term, but a well-diversified ETF portfolio is designed to handle volatility and grow steadily over the long term.
Are ETFs suitable for investors with a low-risk appetite?
Yes, investors with lower risk tolerance can choose bond or balanced ETFs that focus on stability and generate relatively consistent returns.
What factors should investors compare before choosing an ETF?
Investors should review the ETF’s expense ratio, tracking index, liquidity, fund size, and past consistency before making a decision.

February 6, 2026

What Is Leverage in the Stock Market?

Imagine you want to buy a house worth Rs.50 Lakhs but are you willing to pay the full price from your pocket? Generally you won’t. You might pay a down payment of Rs.10 Lakhs, and for the remaining amount you might take a loan from the bank for the remaining Rs.40 lakhs. Even if the bank is paying most of the amount for your house, the house still belongs to you. If there is an increment in the property prices you will get the benefit and not the bank.

This is exactly how leverage in the stock market works. It allows you to buy shares worth much more than the cash you have in your account. You pay a small percentage, and your broker pays the rest.

Many people search for leverage meaning in trading because they must have heard stories of making fast money. While it is true that leverage helps you grow a small account quickly, it requires strict discipline. In this blog, we will explain everything about leverage, so you can understand and use it while you make your next trade.

What is Leverage in the Stock Market and how it works?

Leverage is basically a short-term loan from your broker. To get this loan, you must keep some money in your account as a security deposit. This deposit is called “Margin.”

In India, for intraday trading (buying and selling on the same day), brokers usually give you up to 5 times (5x) leverage. This means for every Rs.1 you have, you can buy stocks worth Rs.5.

Example: Suppose you have ₹10,000 in your trading account and a stock, ABC Ltd, is priced at ₹1,000 per share. Without leverage, you can buy 10 shares. A 5% rise to ₹1,050 gives you a ₹500 profit.

With 5× leverage, you can buy 50 shares worth ₹50,000 using the same ₹10,000.

A 5% rise now earns ₹2,500, a 25% return on your capital. But a 5% fall causes a ₹2,500 loss, and a 20% fall wipes out your entire ₹10,000.

Types of Leverage in Stock Market and their benefits

In India, brokers offer different types of leverage products. Let’s look at the most common ones.

Intraday Leverage (MIS)

MIS means Margin Intraday Square-off, in this type of trading you buy shares and you get a leverage of up to 5x but here is the catch you need to square-off your position before the market closes around 03:20 PM.

Investors get a benefit that they don’t have to pay any interest to the broker as the money is returned on the same day. But if you forget to sell the broker will automatically sell you shares even if you are incurring losses and you might also be charged with a penalty fee.

Margin Trading Facility (MTF)

MTF stands for Margin Trading Facility, this is specifically for the investors that are looking to hold their stocks for more than one day. In this the investors need to pay a part of the money (around 25%) and the rest of the amount is paid by the broker on your behalf, by this you can hold the stocks for a longer period. As investors here are borrowing money for a long term, interest is charged. The broker charges an interest rate of 12% to 18% per year (approx 0.04% per day). Here the investor must “pledge” (deposit) the bought shares to the broker as security.

Derivative Leverage (Futures and Options)

When you trade Futures or Options (F&O), you are naturally using leverage. In this the investors need to pay a token advance known as Margin to buy a contract worth lakhs. . This allows traders to take large positions with limited capital, magnifying both profits and losses.

To reduce excessive risk, regulators introduced new margin rules in 2025. These rules limit how much leverage traders can use, ensuring positions are better backed by capital and reducing the chances of sudden, heavy losses for investors.

Options are derivatives that give the buyer the right, not the obligation, to buy or sell an asset at a fixed price before expiry. Calls benefit from rising prices, puts from falling prices. Buyers pay a premium, which is the maximum loss, but gains can be significant due to leverage.

Markets Where You Can Use Leverage

Leverage is not just for buying company shares. In India, you can use leverage in several different markets.

1. Equity Market (Stocks)

This is the most common place for beginners.

Intraday: You can buy shares of companies like Reliance, Tata Motors, or Infosys with 5x leverage if you sell them on the same day.
Delivery: Using MTF, you can buy these shares and hold them for weeks with up to 5x leverage.

2. Derivatives Market

This market is built entirely on leverage.

Indices: You can trade the entire market like Nifty 50 or Bank Nifty using Futures and Options (F&O). One can buy contracts that require a small margin money to control a large value.
Stocks: You can also trade Futures contracts for specific stocks in the market. For example, one lot of HDFC Bank futures might be worth ₹10 Lakhs, but you can trade it with just ₹1.5 Lakhs.
Commodity Market: This market is mainly for trading raw materials and commodities like bullions, metals, energy, crude oil, pulses, etc. You can go to the Multi Commodity Exchange (MCX) and National Commodity & Derivatives Exchange (NCDEX) for trading futures of commodities.

3. Currency Market (Forex)

You can trade on currency pairs like USD/INR (Dollar-Rupee), EUR/INR (Euro-Rupee), etc. Currency prices move very little (often just a few ticks in a day).

To make a meaningful profit, you need high leverage. Brokers allow you to control a large amount of dollars with a very small rupee deposit.

Read Also: What is Trading on Equity?

Advantages of Leverage in the Stock Market

Capital Efficiency (More with Less): As an investor you can get benefits as you can directly get the money as leverage to start your financial investing. New investors and small traders can take decent positions in the market without needing lakhs of rupees. It helps you use your capital efficiently.
Higher Return on Investment (ROI): Even a small movement in the stock price can give you a good return. Leverage helps you to magnify your return percentage, which then helps the investors in growing their small accounts as compared to the traditional investors.
Ability to Buy Expensive Stocks: Stocks that are of high value can also be opted by the small traders (like MRF & Honeywell). If the stock costs around Rs.20,000 and you only have Rs.10,000 then using leverage can make this happen and you can afford the stock.
Short Selling Opportunities: Leverage can be very useful during the falling market scenario, you can “short sell” first and buy later to earn profit from the falling prices. Using intraday leverage short selling can be made very accessible and easy for retail traders.

Risks of Leverage

The “Margin Call” Risk: If the trade that you have invested in starts to fall your broker will start getting worried. If your loss gets too close to your deposited amount, the broker will ask you to add more money immediately. This is what is known as a Margin Call. If you don’t add money, the broker will sell your shares at a loss without consulting you.
Over-Trading (Revenge Trading): When traders lose money on a leveraged trade, they often get disheartened. They take a bigger trade with even more leverage to “recover” the loss. This is a huge mistake as it usually leads to bigger losses.
Ignoring the “Black Swan” Events: Sometimes, the market can get affected by sudden bad news and crash 10% or 20% in minutes. If you are using 5x leverage, a 20% crash means you lose 100% of your money instantly. You might end up owing money to the broker at the end of the day
High Costs in MTF: If you use MTF (holding positions for days) and the stock price does not move, you still lose money. Why? Because of the daily interest you will have to pay for the borrowed funds. This interest eats into your profits.

Conclusion

Leverage is a powerful tool if used sensibly. It allows common people to participate in the stock market with significant power. It creates opportunities for high returns and helps in capital efficiency.

However, you should treat it with respect. Do not use maximum leverage just because your broker offers it. Start small. If you are new, trade with your own money first. Once you learn how to make consistent profits, then slowly use leverage to increase your gains.

Remember, the goal is to stay in the market for a long time. Use leverage as a way to build wealth, not to gamble it away.

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Frequently Asked Questions (FAQs)

What is leverage in simple terms?
Leverage is like a loan from your broker that lets you buy more shares than you could have bought with your own cash. For example, buying Rs.50,000 worth of shares with only Rs.10,000 in your account.
Is leverage good for beginners?
No, it is generally risky for beginners. Since beginners are more prone to making mistakes which amplifies losses. A small mistake can wipe out your entire capital invested in the trade. It is always recommended to practice with your own money first.
What is the maximum leverage available in India?
For intraday equity trading, SEBI has capped the leverage at roughly 5x (i.e. you will need to pay 20% margin). For delivery trades using MTF, it is usually up to 4x.
Do I have to pay interest on leverage?
For Intraday (MIS), there is usually no interest. But if you carry the position to the next day using MTF, you will have to pay interest, which is typically around 14% to 18% per year.
Can I lose more money than I invested?
Yes, it is possible in rare cases. If a stock price crashes suddenly (gap down) when the market opens, your loss could be more than the money you have in your account. You will have to pay the difference to the broker.

February 5, 2026

Best Retirement Books for Smart Financial Planning

Retirement is not a finish line. It is a fresh innings, one that comes with freedom and responsibility in equal measure. Starting this phase with confidence and independence requires planning that begins well before the final working day. Thoughtful retirement planning builds financial stability, cushions unexpected risks, and supports the lifestyle you want to keep living. For anyone who wants to see how this works in the real world, a number of well-researched books dig into the process. They offer practical frameworks, grounded insights, and real-life perspectives that help shape smarter long-term decisions.

In today’s blog post, we will give you an overview of the top 10 best Retirement Books.

Top 10 Best Retirement Books

Rich Dad’s Retire Young, Retire Rich
Millennial Money
I Will Teach You to Be Rich
The Total Money Makeover
Thou Shall Prosper
The Index Card
The Financial Diet
The Barefoot Investor
Dollars and Sense
Quit Like a Millionaire

Book Name	Author	Rating (Goodreads)	Year of Launch
Rich Dad’s Retire Young Retire Rich	Robert T. Kiyosaki	4.09	2000
Millennial Money	Patrick O’Shaughnessy	4.10	2018
I Will Teach You to Be Rich	Ramit Sethi	4.24	2009
The Total Money Makeover	Dave Ramsey	4.22	2003
Thou Shall Prosper	Daniel Lapin	4.01	2010
The Index Card	Helaine Olen & Harold Pollack	4.05	2016
The Financial Diet	Chelsea Fagan & Lauren Ver Hage	4.0	2016
The Barefoot Investor	Scott Pape	4.3	2016
Dollars and Sense	Dan Ariely & Jeff Kreisler	4.0	2017
Quit Like a Millionaire	Kristy Shen & Bryce Leung	4.32	2019

Overview of the Top 10 Best Retirement Books

1. Rich Dad’s Retire Young, Retire Rich by Robert T. Kiyosaki

It is a book that questions the old-fashioned concept of retirement since it is not about the age but about financial independence. Early Retirement: Robert Kiyosaki reveals how income-generating assets, smart investing and entrepreneurial thinking can enable you to retire early and live life your way, with freedom and confidence.

Why It Is Great: This book introduces a new concept of retirement through education on financial independence and entrepreneurship, rather than saving. Kiyosaki tells stories and everyday wisdom to demonstrate how strategies of accumulating income-generating assets can empower you to retire sooner and more confidently. It is inspirational, real-life, and makes you redefine money, investment, and risk, where retirement is about freedom, not age.

2. Millennial Money by Patrick O’Shaughnessy

Millennial Money discusses the ways in which modern investors can accumulate wealth over the long term in a world that is rapidly changing. The book simplifies the process of investing, decision-making and financial discipline in a manner that is easy to understand, not just to millennials but to anyone intending to have a stable and flexible retirement.

Why It Is Great: This book is written as a guide to modern investors to understand how to accumulate wealth and ensure financial security in a transforming economy. It is particularly helpful to younger readers, but also useful to anyone who desires to build upon their retirement savings with smart investment habits and a proactive attitude toward them.

3. I Will Teach You to Be Rich by Ramit Sethi

This book presents an easy, stress-free method of money management and future planning. Ramit Sethi focuses on automation, intelligent spending and long-term investing practices that silently build wealth over time, helping the reader to plan their retirement without extreme budgeting and being at all times financially worry-free.

Why It Is Great: In this book, the author uses a conversational tone to present a practical approach to managing personal finance, which helps in long-term planning. This book is unique as it links daily money habits with future retirement planning and seems like a personal coach.

4. The Total Money Makeover by Dave Ramsey

The book by Dave Ramsey offers a step-by-step guide to solving individual finances and creating a safe retirement. It focuses on the removal of debt, accumulating savings, and making regular investments. The book is written in a way that is easy to understand, so it can be used as a guide to help a beginner to start controlling their money and build long-term financial stability.

Why It Is Great: Ramsey’s classic plan divides money management into simple steps, starting with getting rid of debt, then creating savings, thus making retirement planning seem attainable to anyone. It is evidence that well-managed financial choices in the present day can result in a safe future. Its practical plans are inspirational and practical.

5. Thou Shall Prosper by Daniel Lapin

This book is a blend of values and mindset with wealth creation. Daniel Lapin explains the relationship between financial success, behaviour, ethics, and purpose. It is an intelligent piece of reading for individuals who desire to accumulate wealth that can be converted into retirement, and at the same time make wise choices in relation to money and values.

Why It Is Great: The book combines classical rules of wealth generation and personal values, as it demonstrates how the psychology of success and ethical business conduct impact financial prosperity. It is not only about planning for retirement but also about developing the prosperity mindset that will help you long after you are out of the working years.

6. The Index Card by Helaine Olen & Harold Pollack

The Index Card makes personal finance simple and easy to follow, with timeless advice on one card. It is concentrating on saving, investing, preventing usual errors and planning in advance. The book is also ideal for simple retirement planning without being overly complicated, making it easy to understand for readers overwhelmed by financial jargon.

Why It Is Great: This book is a simple and efficient way of making personal finance easy. It is ideal for everyone who feels overwhelmed by the retirement planning process by prioritising the key values such as saving, investing and avoiding expensive mistakes.

7. The Financial Diet by Chelsea Fagan & Lauren Ver Hage

The book offers a contemporary and relatable approach to money management. It takes into account the budgeting, saving, investing, and lifestyle planning, whereas it focuses on long-term financial goals such as retirement. It includes real-life examples and practical advice that will help the readers create healthy financial habits that will last a lifetime.

Why It Is Great: This is an easy-read book that has a new approach to money management with easy-to-relate tips on how to spend, save and plan to achieve life goals such as retirement. Financial planning can be personal and achievable because of its authentic tone and helpful content that are practical, especially for those who are only starting their financial journey or changing their financial routines.

8. The Barefoot Investor by Scott Pape

This book is written in an informal and non-technical way, providing a straightforward guide to financial management. Scott Pape does not confuse budgeting and saving, as well as investing and planning retirement. It is best suited to those readers who desire a step-by-step guide to financial security.

Why It Is Great: This book contains humour and a mix of practicality, which simplifies budgeting, savings, and investing. The clear structure of the book offers strategies for a personal financial coach.

9. Dollars and Sense by Dan Ariely & Jeff Kreisler

This book explores the psychology behind how people make financial decisions. This book focuses on how understanding financial behaviour can lead to better savings and investing strategies.

Why It Is Great: This is a very insightful book about the psychology of how we spend and save, showing why we make money mistakes and how to correct them. The knowledge of our own financial behaviour can help readers make wiser choices up to and including retirement.

10. Quit Like a Millionaire by Kristy Shen & Bryce Leung

This book shows how a disciplined investment strategy can help in achieving financial independence early. This book contains real-life data-backed strategies to increase wealth over time and achieve early retirement without relying on risky investments.

Why It Is Great: This book focuses on achieving early financial independence with data-driven investment strategies. And helps prepare traditional mode of retirement at an early age.

Why Should One Read Retirement Books?

One should read retirement books to prepare for a secure and independent retirement. Books simplify complex subjects such as investments, income planning, etc. appropriately. A few of such books contain real-life experiences that help an investor in avoiding financial mistakes.

Conclusion

Retirement should not be a consequence; it must be a choice, as one must plan their retirement at an early age by managing their expenses and income. There are various books available in the market related to retirement, focusing on different aspects of it. One should read such books to make informed decisions and avoid common mistakes. Even after retirement, equity allocation helps diversification – invest smarter with Pocketful low brokerage, easy to use, fast support. However, it is advisable to consult with your retirement advisor before planning your retirement.

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Frequently Asked Questions (FAQs)

Who can read the retirement book?
Reading books is suggested for all individuals who are planning their retirement. By reading such books, they can easily manage money and their investments to plan a better retirement.
Does the retirement book focus only on money?
No, retirement books not only focus on money management, but they also focus on mindset, psychology, etc.
Which are the best retirement books available in the market?
The best retirement books include Rich Dad’s Retire Young, Retire Rich, Millennial Money, I Will Teach You to Be Rich, The Total Money Makeover, etc.
Can I plan my retirement only by reading retirement books?
Reading retirement books can lay down the foundation of retirement planning, but for a proper layout of your retirement, you are required to consult with your financial or retirement advisor.
When can I start reading retirement books?
You can start reading retirement books at an early age to get knowledge about how retirement planning works.

February 5, 2026

Blog

Fiscal Deficit Explained: Meaning, Formula, Causes & Impact | Budget 2026–27

What is Fiscal Deficit?

What constitutes the government’s total revenue?

Fiscal Deficit Formula

Fiscal Deficit Formula

India Fiscal Deficit Status: Budget 2026–27 Key Numbers

Where Does the Government Spend So Much?

Capital Expenditure Push Emphasis on infrastructure and asset creation :

Manufacturing & Strategic Investment :

MSME and small industry support :

Fiscal Deficit vs Budget Deficit vs Revenue Deficit

Main Causes of Fiscal Deficit

Is Fiscal Deficit Always Bad?

When a Fiscal Deficit Can Be Beneficial :

When a Fiscal Deficit Can Become a Risk :

How Fiscal Deficit Impacts Common Citizens ?

Impact on Investors & Markets

Conclusion

Frequently Asked Questions (FAQs)

Why does a fiscal deficit occur?

How does the government finance the fiscal deficit?

Is a higher fiscal deficit dangerous?

How does the government cover a fiscal deficit?

Can a fiscal deficit increase loan interest rates?

Best Corporate Bond Funds in India

What Are Corporate Bonds and How Do They Work?

Best Corporate Bonds Mutual Funds in India (2026)

1. HDFC Corporate Bond Fund

2. ICICI Prudential Corporate Bond Fund

3. SBI Corporate Bond Fund

4. Kotak Corporate Bond Fund Direct Growth

5. Bandhan Corporate Bond Fund

6. Nippon India Corporate Bond Fund

7. Axis Corporate Bond Fund

8. Tata Corporate Bond Fund Direct Growth

9. Franklin India Corporate Debt Fund

10. Baroda BNP Paribas Corporate Bond Fund

Risks Associated With Corporate Bond Funds

Conclusion

Frequently Asked Questions (FAQs)

What are corporate bond funds?

Are corporate bond funds risky?

How much return can corporate bond funds give?

Can I invest through SIP?

How long should I stay invested?

Mutual Fund Industry in India: Siz, Trends & Future Outlook

Current Size of the Mutual Fund Industry in India

Category-wise Distribution of Mutual Fund Assets

Investment categories in the mutual fund industry

Shifting Investor Preferences

Growth Drivers of Mutual Funds in India

Recent Performance and Industry Momentum

Rise of Passive Funds and ETFs in India

Distribution Channels and Technology

Regulatory Support and Industry Framework

Challenges and Risks Facing the Industry

Conclusion

Frequently Asked Questions (FAQs)

What is the current size of the mutual fund industry in India?

What factors are driving the growth of mutual funds in India?

Why are passive funds and ETFs gaining popularity?

Is mutual fund investment increasing in Tier-2 and Tier-3 cities?

What is the future of mutual funds in India?

Best Venture Capital Books for Investors and Startup Founders

What Is Venture Capital?

Key Features

List of Best Venture Capital Books

1. “Venture Deals” by Brad Feld & Jason Mendelson

What You Will Learn

Why This Book Is Worth Reading

2. “Secrets of Sand Hill Road” by Scott Kupor

What You Will Learn

Why This Book Is Worth Reading

3. “The Power Law” by Sebastian Mallaby

What You Will Learn

Why This Book Is Worth Reading

4. “The Entrepreneurial Bible to Venture Capital” by Andrew Romans

What You Will Learn

Why This Book Is Worth Reading