Wednesday, February 25, 2026

MotilalOswal Mutual Fund Review 2026: Is motilaloswal Good for Long-Term Investment?

February 25, 2026 No comments

MotilalOswal Mutual Fund – Complete Guide to Investing with motilaloswal

MotilalOswal Mutual Fund – A Complete Guide to Investing with motilaloswal

Your in-depth resource to understand, evaluate and invest in motilaloswal mutual funds

Introduction to motilaloswal Mutual Fund

When investors search for consistent long-term wealth creation in India, one name that frequently appears is motilaloswal. The motilaloswal mutual fund house has built a strong reputation for its research-driven investment approach and conviction-based portfolio strategy.

MotilalOswal Asset Management Company (AMC) is part of the well-known Motilal Oswal Group, a financial services conglomerate with expertise in equity research, broking, wealth management and investment advisory. Over the years, motilaloswal mutual fund schemes have attracted investors looking for high-quality, focused portfolios.

In this detailed guide, we will explore motilaloswal mutual fund offerings, investment philosophy, popular schemes, advantages, risks, and how you can invest in motilaloswal funds for long-term wealth creation.

Investment Philosophy of motilaloswal

The core investment philosophy of motilaloswal mutual fund is centered around the idea: “Buy Right, Sit Tight.”

Unlike many fund houses that frequently churn portfolios, motilaloswal believes in:

Investing in high-quality businesses
Long holding periods
Concentrated portfolios
Strong research backing
Growth-oriented companies

This conviction-driven strategy differentiates motilaloswal from diversified high-turnover funds. The focus is on companies with sustainable competitive advantages, scalable business models, and strong management quality.

Why Investors Consider motilaloswal Mutual Fund

There are several reasons why motilaloswal mutual fund schemes are popular among Indian investors:

1. Research-Driven Approach

The motilaloswal group has a long legacy in equity research. Their AMC benefits from deep analytical frameworks and strong company tracking models.

2. High Conviction Portfolio

Motilaloswal mutual fund schemes often hold a limited number of stocks compared to traditional diversified funds. This concentration allows higher impact from well-researched ideas.

3. Long-Term Wealth Creation Focus

Motilaloswal emphasizes compounding over trading. Investors who align with long-term strategies often find this approach suitable.

4. Growing Investor Base

With rising AUM (Assets Under Management), motilaloswal mutual fund has gained trust among retail and HNI investors.

Types of motilaloswal Mutual Fund Schemes

Motilaloswal mutual fund offers multiple categories of schemes catering to different investor profiles:

1. Equity Funds

Large Cap Funds
Mid Cap Funds
Flexi Cap Funds
Focused Funds
ELSS (Tax Saving Funds)

Equity schemes of motilaloswal are suitable for long-term investors willing to tolerate market volatility.

2. Hybrid Funds

Hybrid schemes of motilaloswal combine equity and debt to balance risk and return.

3. Index and Passive Funds

Motilaloswal also offers index funds and ETFs for investors who prefer passive investing strategies.

4. International Funds

For global diversification, motilaloswal mutual fund provides international exposure options.

Popular motilaloswal Mutual Fund Schemes

Some of the well-known motilaloswal mutual fund schemes include:

MotilalOswal Flexi Cap Fund
MotilalOswal Midcap Fund
MotilalOswal Nasdaq 100 Index Fund
MotilalOswal S&P 500 Index Fund
MotilalOswal ELSS Tax Saver Fund

These schemes have gained attention due to performance consistency and focused investment strategy. However, investors must always evaluate suitability based on risk appetite.

Performance Perspective of motilaloswal Funds

Motilaloswal mutual fund schemes have shown strong performance during bullish market phases, especially in growth cycles. Because of their concentrated portfolios, they may outperform significantly when selected stocks perform well.

However, due to concentration, short-term volatility can also be higher compared to diversified funds. Therefore, motilaloswal investments are more suitable for investors with:

Long investment horizon (5+ years)
High risk tolerance
Patience during market corrections

Benefits of Investing in motilaloswal Mutual Fund

1. Professional Fund Management

Motilaloswal funds are managed by experienced professionals with strong research backing.

2. SIP Facility

Investors can start motilaloswal SIP with small amounts and build wealth gradually.

3. Transparency

Regular disclosures and fact sheets allow investors to track portfolio holdings.

4. Diversification

Through different schemes, motilaloswal mutual fund offers exposure across sectors and geographies.

Risks Associated with motilaloswal Mutual Fund

Every investment carries risks, and motilaloswal mutual fund is no exception.

Market Risk
Concentration Risk
Sectoral Exposure Risk
Global Market Risk (for international funds)

Investors must align motilaloswal schemes with their financial goals and risk capacity.

Who Should Invest in motilaloswal?

Motilaloswal mutual fund is suitable for:

Long-term investors
Equity-oriented portfolios
Investors seeking growth over income
Individuals comfortable with volatility

If your goal is retirement planning, children’s education, or wealth creation over 10–15 years, motilaloswal equity schemes can be considered as part of a diversified portfolio.

How to Invest in motilaloswal Mutual Fund

Investing in motilaloswal mutual fund is simple:

Directly through the AMC website
Through mutual fund distributors
Via online investment platforms
Through SIP or Lump Sum investment

Before investing in motilaloswal schemes, ensure KYC compliance and proper financial planning.

Taxation of motilaloswal Mutual Fund Investments

Tax treatment of motilaloswal mutual fund investments depends on scheme type:

Equity Funds

Short Term Capital Gains (STCG) – 15%
Long Term Capital Gains (LTCG) – 10% above exemption limit

Debt Funds

Taxed as per investor’s income slab.

ELSS schemes under motilaloswal provide tax deduction under Section 80C.

Is motilaloswal Mutual Fund Good for Long-Term Investment?

Motilaloswal mutual fund has built credibility due to disciplined investing and long-term orientation. For investors seeking growth and willing to tolerate fluctuations, motilaloswal funds can be a strong addition.

However, no fund guarantees returns. Proper asset allocation and diversification remain critical.

Final Thoughts on motilaloswal

Motilaloswal mutual fund represents a research-backed, conviction-driven approach to investing. Its philosophy of buying quality businesses and holding them long term appeals to serious investors.

If you are planning to build wealth systematically, starting a motilaloswal SIP or allocating a portion of your portfolio to motilaloswal equity funds may be worth evaluating.

Always assess:

Your financial goals
Your risk tolerance
Your investment horizon
Portfolio diversification

In conclusion, motilaloswal mutual fund can be a powerful vehicle for wealth creation when used strategically within a disciplined financial plan.

When Can I Withdraw from PPF? Rules, Penalties & Tax-Free Limits Explained

February 25, 2026 No comments

PPF Withdrawal Rules 2025: Complete Guide (Updated)

PPF withdrawal rules: complete guide for 2025

🔑 PPF 📘 everything about partial, premature & maturity withdrawal

PPF (Public Provident Fund) remains India's most beloved long-term savings scheme, blending security, tax benefits, and attractive interest. But when life happens — a child's education, medical emergency, or retirement — you need to know the PPF withdrawal rules inside out. This comprehensive guide decodes every clause, form, and condition so you can access your PPF corpus without penalties or confusion.

🎯 PPF at a glance: 15-year lock-in, 7.1% p.a. (current), EEE status. But partial withdrawals are allowed from year 7, and premature closure is possible under specific conditions. Let's dive deep.

📌 1. partial withdrawal from PPF (after 6 financial years)

The most common way to take money out of your PPF account is through a partial withdrawal. You can withdraw once every year from the 7th financial year onwards (i.e., after completion of 6 years). The permitted amount is the lower of:

50% of balance 50%

of the balance at the end of the 4th year (preceding year)

50% of balance 50%

of the balance at the end of the immediate previous year

example If you opened PPF in FY 2018-19, you can apply for withdrawal after FY 2024-25 (i.e., 2025-26). You can withdraw up to 50% of the balance as on 31st March of 2021-22 (4th year) OR 2024-25 (previous year), whichever is lower.

📝 forms & process for PPF partial withdrawal

Use Form C (withdrawal form) available at your bank/post office. Submit it with your PPF passbook and ID proof. The amount is credited within a few days. Only one withdrawal is permitted per financial year.

⏳ 2. PPF maturity withdrawal (completion of 15 years)

When your PPF completes 15 years from the end of the year in which the account was opened, the entire corpus becomes withdrawable. You can close the account and take the entire PPF balance tax-free. But wait — you also have two golden options at maturity:

Extend with contribution: Continue contributing in blocks of 5 years, while earning interest.
Extend without contribution: Just let the balance grow at PPF interest rate, and withdraw any amount once per year.

🚀 extension superpower

If you extend PPF without contributions, you can withdraw any amount (not restricted to 50%) once every financial year. It’s like a flexible savings account with tax-free interest. To opt, simply submit Form H within one year of maturity.

⚠️ 3. premature closure of PPF (before 15 years)

Premature closure of PPF is allowed only under severe circumstances, and after the account has completed 5 years. Conditions accepted by the government:

💊 treatment of serious disease 🎓 higher education of child 🌍 change of residency (NRIs)

In such cases, PPF premature closure attracts a 1% interest penalty (interest paid will be 1% less than the applicable rate for the completed periods). Supporting documents are mandatory.

PPF withdrawal type	when allowed	maximum amount	penalty / forms
partial	from 7th financial year	50% (as per rule)	Form C, no penalty
maturity (15 years)	after 15 years	100% of balance	Form C, tax-free
premature (5 years completed)	specific hardship/education	100% of balance	1% interest reduction + Form E
extended PPF (no contribution)	after 15 years & extension	any amount (once/year)	Form C, no TDS

🧾 4. tax treatment on PPF withdrawals

PPF follows EEE (Exempt-Exempt-Exempt) model. Amount withdrawn — whether partial, maturity, or extended — is completely tax-free. No TDS deducted. Interest earned is also exempt under section 10. That’s the beauty of PPF.

📄 5. important PPF withdrawal rules & restrictions

Beyond the basics, keep these points in mind for a smooth PPF experience:

Nomination: If the account holder expires, nominee can claim the PPF balance (no penalty).
Loan against PPF: From 3rd to 6th year you can take a loan (25% of balance) — cheaper than withdrawal if you need short-term funds.
Multiple PPF accounts: Only one account per individual is allowed; if you hold more, the second one will be considered irregular and may be clubbed with penalty.
Joint account: Not permitted; only individual.
Withdrawal for NRI: If you become an NRI, you cannot continue PPF beyond maturity; but you can let it run till 15 years from opening. No fresh deposits after NRI status.

🔁 6. PPF withdrawal vs. loan – what’s better?

Between year 3 and year 6, you can take a loan against PPF (up to 25% of balance at 2% interest, repayable in 36 months). After year 6, partial withdrawal is usually better because it’s interest-free. Use a loan if you don’t want to reduce your final corpus.

❓ Can I withdraw from PPF every year?

Yes, after the 6th year, you can withdraw once every financial year. But the amount is limited to 50% of specific balances. You cannot withdraw every month – only one withdrawal per year.

❓ Is PPF withdrawal taxable?

Absolutely not. Entire withdrawal, including interest, is tax-free. You don't even need to show it in ITR as income.

❓ What is Form C for PPF?

Form C is the standard application for partial or final withdrawal from PPF. Available at all post offices and nationalised banks.

🧮 quick example: PPF partial withdrawal calculation

PPF opened in FY 2019-20. Balances: 31/03/2023 = ₹2,50,000; 31/03/2025 = ₹4,00,000. Financial year 2025-26 (7th year) – you can withdraw lower of:

50% of ₹2,50,000 = ₹1,25,000 OR 50% of ₹4,00,000 = ₹2,00,000 → you get ₹1,25,000

🏁 final takeaways: smart PPF exit strategy

PPF is a wealth creator if you stay invested. Withdraw only when necessary. Use the extension rule to create a pension-like tax-free stream. Remember, even after 15 years, you don’t have to close it — extended PPF with zero contributions offers unmatched flexibility. Always keep Form C handy and track your 4th year balance for maximum withdrawal eligibility.

ppf ppf ppf withdrawal rules – this guide focuses on ppf partial withdrawal, ppf premature closure, ppf maturity, ppf loan, and every aspect of ppf to ensure comprehensive coverage of ppf topic.

The Psychology of Money: Why What You Know Isn't Enough — Complete Guide for Indian Investors (2025)

February 25, 2026 No comments

The Psychology of Money: How Your Mind Shapes Your Wealth | Complete Guide 2025

Personal Finance & Money Psychology

The Psychology of Money: Why What You Know Isn't Enough

A complete summary of Morgan Housel's landmark book — plus a deep dive into why our brains are wired to make bad financial decisions, and how to fix that.

Finance Insights India February 2025 25 min read Updated for Indian readers

What Does "The Psychology of Money" Actually Mean?

We live in a world that treats money as a math problem. Get good grades, land a stable job, save 20% of your salary, invest in mutual funds, and retire comfortably. Simple, right?

But if personal finance were purely about numbers, why do so many smart, educated people find themselves broke, anxious, or stuck in a cycle of debt? Why do doctors, engineers, and MBAs make terrible financial decisions — while someone with a Class 10 education quietly builds a ₹2 crore corpus over a lifetime?

The answer lies not in spreadsheets, but in your head.

The psychology of money is the study of how our emotions, beliefs, cognitive biases, and lived experiences shape every single rupee we earn, spend, save, or invest. It's the invisible operating system running underneath every financial decision you think you're making rationally.

"Financial success is not a hard science. It's a soft skill, where how you behave is more important than what you know."

— Morgan Housel, The Psychology of Money

This blog post does two things: it gives you a thorough, honest summary of Morgan Housel's bestselling book The Psychology of Money, and then zooms out to explore the broader science of how our minds interact with wealth — with specific examples and insights relevant to Indian readers.

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About the Book: Why Morgan Housel's Work Changed Personal Finance

The Psychology of Money: Timeless Lessons on Wealth, Greed, and Happiness was published in September 2020 by Harriman House. Morgan Housel, a former columnist at The Wall Street Journal and The Motley Fool, wrote a book unlike anything in personal finance before it.

There are no stock tips. No technical analysis. No charts. Instead, there are 19 short, punchy chapters, each built around a single idea about how human beings relate to wealth. It sold over 4 million copies worldwide and has been translated into dozens of languages — including Hindi and other Indian regional languages.

What makes the book special is its simplicity. Housel doesn't lecture you about what to do. He shows you why humans behave the way they do around money — often irrationally — and gives you the framework to catch yourself before you make a costly mistake.

📘 Quick Book Facts

Author: Morgan Housel

Published: September 2020

Publisher: Harriman House

Pages: 242

Price in India: approx. ₹350–₹450 (paperback) on Amazon India and Flipkart

Rating: 4.4/5 on Goodreads (400,000+ ratings)

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Chapter-by-Chapter Summary of The Psychology of Money

Here's a detailed breakdown of all 19 chapters — the core ideas, the stories Housel uses, and why each one matters to you.

Chapter 1

No One's Crazy

Different people have different experiences with money based on where and when they were born. Someone who grew up during the Great Depression will handle money differently from someone who grew up in a boom economy. Neither is "wrong" — their financial behaviour is shaped by their personal history. This is why your parents might be obsessively frugal while your friends invest freely. Context defines everything.

Chapter 2

Luck & Risk

Bill Gates went to one of the only high schools in the world with a computer in 1968. That was luck. His friend Kent Evans, equally talented, died in a mountaineering accident before Microsoft was born. That was risk. Housel argues we credit success too much to skill and failure too much to stupidity — when luck and risk play enormous roles. This should make us both more humble about our wins and more compassionate about others' losses.

Chapter 3

Never Enough

The modern tendency is to constantly move the goalpost of "enough." Rajat Gupta, once the CEO of McKinsey, risked everything — including prison — by insider trading, despite already being worth hundreds of millions. Why? He wanted more. Housel warns: the hardest financial skill is getting the goalpost to stop moving. Without an idea of "enough," you'll always be chasing and never arriving.

Chapter 4

Confounding Compounding

Warren Buffett's net worth is approximately $84 billion. But here's the twist: $81 billion of that came after his 65th birthday. He's not just a great investor — he's a great investor who started at age 10 and never stopped. Compounding only works over long time periods, and most people dramatically underestimate how explosive it becomes in the later years. Patience isn't just a virtue in investing — it's the strategy.

Chapter 5

Getting Wealthy vs. Staying Wealthy

Getting money requires taking risk and being optimistic. Keeping money requires the opposite — humility, frugality, and paranoia. These are different skills. Many people who build fortunes lose them because they keep taking the same risks that made them rich, not realising that the game has changed. Housel emphasises: surviving is more important than thriving. You can't invest if you've been wiped out.

Chapter 6

Tails, You Win

Most of the biggest returns in investing come from a tiny number of decisions. Amazon's success came from AWS and Prime — not from selling books. Netflix's success came from streaming — not DVDs. In your portfolio, a handful of investments will drive most of your returns. This means it's okay to fail often in small ways — as long as your wins are spectacular. Diversification and patience allow tails to play out.

Chapter 7

Freedom

Housel argues that the highest form of wealth is the ability to control your own time. Buying expensive things gives a temporary buzz, but having the freedom to choose how you spend your days — that's the real luxury. Research consistently shows that people who feel in control of their time report significantly higher levels of happiness, regardless of income level.

Chapter 8

Man in the Car Paradox

When you see someone driving a Porsche, you think about the Porsche — not the person driving it. Yet people buy luxury cars and watches to earn respect and admiration. The paradox: the things we buy to signal wealth rarely signal what we intend to. People don't admire us through our stuff — they imagine themselves in our place. A better path to respect is through kindness, humility, and character.

Chapter 9

Wealth Is What You Don't See

The person in the Mercedes might be deeply in debt. The person in the second-hand car might have a ₹3 crore portfolio quietly compounding. True wealth is not the money you spend — it's the money you don't spend. Financial assets unseen by others are what generate real long-term security. The appearance of wealth and actual wealth are often opposites.

Chapter 10

Save Money

You don't need a particular reason to save. Saving for "a rainy day" is reason enough. Savings give you options, flexibility, and freedom — the ability to say no to a bad job, to take a career risk, to not panic during a market crash. Housel argues savings rate matters more than investment returns. You can't control the market, but you can control what you spend.

Chapter 11

Reasonable > Rational

Perfectly rational financial decisions often fail because humans aren't machines. Holding investments through a 40% market crash is "rational" — but psychologically brutal. Better to make slightly suboptimal decisions you can actually live with than perfect decisions you'll abandon. A financial plan that works emotionally is more valuable than one that works mathematically.

Chapter 12

Surprise!

History is full of events no one predicted — the 2008 financial crisis, the COVID-19 pandemic, the 2020 stock market crash followed by an immediate recovery. Housel argues the lesson from history is NOT to predict the next crisis, but to build a portfolio and financial life sturdy enough to survive surprises you never saw coming. Prepare for "something will go wrong, I just don't know what."

Chapter 13

Room for Error

The most important word in personal finance is "margin of safety." Don't optimise for the best-case scenario — plan for things to go worse than expected. Keep cash reserves even when logic says to invest everything. Have insurance even when you feel healthy. Build in redundancy. The gap between a plan that works in ideal conditions and one that works in real life is enormous.

Chapter 14

You'll Change

The goals and values you have at 25 will likely be very different at 45. Housel warns against making irreversible financial decisions based on who you are today. Long-term financial plans should leave room for your future self to have different priorities. Avoid "end of history illusion" — the belief that who you are now is who you'll always be.

Chapter 15

Nothing's Free

Every worthwhile financial outcome has a price — but that price is often hidden. Investing in equities means tolerating stomach-dropping volatility. Building a business means years of sacrifice. The "price" isn't always money — it's uncertainty, time, risk, and emotional strain. The mistake people make is trying to get the returns without paying the price. You must accept the cost.

Chapter 16

You & Me

Financial markets are made up of players with wildly different time horizons. A day trader and a long-term investor are not playing the same game, even if they're buying the same stock. The danger: when you take price signals or advice from someone playing a different game than you. Know your own game — your horizon, your goals — and ignore everyone else's playbook.

Chapter 17

The Seduction of Pessimism

Pessimism sounds smart. Optimism sounds naive. But Housel argues the arc of human history has been one of dramatic improvement — despite all the crises, wars, and collapses. Financial markets, over the long run, have always recovered. Optimism is not blind faith — it's the rational belief that human ingenuity and problem-solving will continue. Don't let financial doom narratives scare you out of building wealth.

Chapter 18

When You'll Believe Anything

When we desperately want something to be true, we become vulnerable to stories and narratives that confirm our desires. The 2008 housing bubble was driven not just by fraud, but by a powerful story: "House prices never go down." We all want to believe compelling narratives — especially about wealth. Critical thinking requires examining the story behind the number.

Chapter 19

All Together Now — Housel's Personal Summary

In the final chapter, Housel shares his own financial philosophy: Live below your means. Accept that you will be wrong sometimes. Be kind to your future self. Don't be influenced by what others do with their money. Define what "enough" means for you and stop there. His personal strategy is deliberately boring — and that's the point. Consistency over brilliance, every single time.

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The 10 Most Important Lessons from The Psychology of Money

Behaviour beats intelligence in finance

A mediocre investor with excellent emotional control will outperform a genius who panics during downturns. Discipline and patience are the real alpha.

Compounding is a superpower, but requires time

Starting a SIP of ₹5,000/month at 25 versus 35 can result in a difference of ₹80 lakh or more by retirement. Start early. Don't stop.

Define what "enough" means for you

Without a finish line, you'll run forever and never feel satisfied. Set a number. A lifestyle. A goal. Then give yourself permission to stop chasing once you're there.

The goal of wealth is freedom, not things

True wealth is having options — the ability to say yes or no on your own terms. Possessions are a poor substitute for this kind of freedom.

Savings rate > investment returns

You have limited control over market returns, but full control over your spending. Cutting your expenses by ₹10,000/month has the same long-term effect as earning an extra 2% on your portfolio.

Plan for things to go wrong

An emergency fund isn't pessimism — it's wisdom. Always have 6 months of expenses liquid. Always insure what you can't afford to lose.

Volatility is the price of entry, not a bug

Equity markets go up and down. The 20–30% crashes are the "fee" you pay for the 12–15% annual returns over decades. Investors who refuse to pay that fee get nothing.

Stay humble about your wins

If your investments did well last year, some of that is skill — but more of it might be luck. Don't let a good run convince you that you're invincible or that you've cracked the code.

Know what game you're playing

Don't follow tips from someone with a 5-day trading horizon if your goal is to retire in 30 years. You're playing different games with different rules.

Be kind to your future self

Every rupee saved today is a gift to the person you'll be in 20 years. That person will thank you — or curse you. The choice is yours, and you make it daily.

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Deep Dive: The Psychology Behind Our Money Choices

Beyond the book, the study of money psychology is a rich and growing field. Behavioural economists like Daniel Kahneman, Richard Thaler, and Dan Ariely have spent decades cataloguing the mental shortcuts and biases that derail our financial lives. Here's what the science tells us.

1. Loss Aversion: Why Losing Hurts More Than Winning Feels Good

Psychologists Kahneman and Tversky discovered that the pain of losing ₹1,000 is roughly twice as intense as the pleasure of gaining ₹1,000. This is why investors sell the moment their portfolio dips — and often end up locking in losses at the worst possible time. Loss aversion also explains why people cling to bad stocks ("I'll sell when it breaks even") far longer than they should.

2. Present Bias: Why We Steal From Our Future Selves

Humans are hardwired to prefer immediate rewards over future ones. This is why spending today feels so much more compelling than saving for 30 years from now. The concept of "hyperbolic discounting" explains why a ₹100 reward today beats a ₹200 reward in five years in the emotional brain — even when your rational brain knows better. Automating savings (auto-debit SIPs) is one of the few ways to bypass this bias.

3. Social Comparison: The Lifestyle Inflation Trap

India's rapidly growing middle class has created a culture of visible aspiration. We see colleagues buying cars, neighbours renovating homes, and school friends posting Europe holiday photos — and we feel an almost primal urge to keep up. Psychologists call this "keeping up with the Joneses," and it's one of the single biggest destroyers of personal wealth. Each EMI we take on to match someone else's lifestyle chips away at our own freedom.

"Spending money to show people how much money you have is the fastest way to have less money."

— Morgan Housel

4. Overconfidence Bias: The Dunning-Kruger Effect in Markets

After a bull market, almost everyone feels like a genius. Returns of 40–50% in a single year convince people that they have discovered an edge. Overconfidence bias leads to excessive trading, over-concentration in a single stock or sector, and taking on leverage without adequate risk assessment. Research shows that the most confident investors are often the least informed — and the most likely to blow up their portfolios.

5. Mental Accounting: Why We Treat Money Differently Based on Its Source

People are far more likely to splurge with a tax refund or a bonus than with their salary — even though it's the same money. This is mental accounting: we assign labels to money based on where it came from, which changes how freely we spend it. The result is that "found money" from a Diwali bonus disappears quickly while carefully saved salary stays intact. All ₹1 is the same ₹1, regardless of where it came from.

6. The Anchoring Effect in Indian Real Estate

When a property seller tells you their flat was worth ₹80 lakhs two years ago, that number becomes an "anchor" in your mind — even if the market has corrected significantly. Anchoring is the tendency to over-rely on the first piece of information we receive. In Indian real estate, this leads buyers and sellers alike to make decisions based on outdated or irrelevant reference points rather than current fundamentals.

7. Narrative Bias: How Stories Override Data

We are not rational calculators — we are storytelling creatures. The brain understands and remembers stories far better than statistics. This makes us susceptible to investment narratives: "This crypto will be the future," "This IPO is the next Infosys," "Gold always holds value." When a story is compelling enough, data stops mattering. Being aware of narrative bias means asking: is this a good story, or is this actually a good investment?

8. The Sunk Cost Fallacy

You bought a flat in a project that's been stalled for four years. You've paid ₹35 lakhs. You keep waiting, hoping — because you can't bear to write off what you've already spent. This is the sunk cost fallacy: letting past, irrecoverable investments drive current decisions. In finance, the only question that matters is: given where I am today, what's the best path forward? The past is irrelevant to that decision.

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🇮🇳 How This Applies to Indian Investors

India's financial landscape is unique — and the psychology of money plays out in distinctly Indian ways.

The Gold Obsession

Indian households hold approximately 25,000 tonnes of gold — more than any country on earth. Much of it is bought not for financial returns, but for cultural identity, family tradition, and the feeling of security. Gold has strong psychological value in India. Understanding that emotion helps — you can honour the tradition with a small gold allocation while building real wealth through equities and mutual funds.

Fixed Deposits and Safety Theatre

For millions of Indian savers, a Fixed Deposit at 7% feels "safe" while equities feel like a casino. But after inflation of 5–6%, that FD is earning a real return of barely 1–2%. The psychological comfort of FDs masks an invisible but very real erosion of purchasing power. Safety is relative — sometimes the "safe" choice is the riskiest one in real terms.

Real Estate as the Only "Real" Investment

In many Indian families, the belief persists that property is the only true asset. This has roots in post-independence economic history when equities were volatile and land was the most reliable store of value. Today, however, Indian equities have delivered superior risk-adjusted returns over 20-year periods compared to residential real estate in most cities. Recency bias (recent memory of property gains) keeps many families over-concentrated in a single, illiquid asset class.

Joint Family Finances and Emotional Accounting

Joint family dynamics add a uniquely Indian dimension to financial psychology. Money decisions are often driven by family expectations, emotional obligations, and social optics rather than pure financial logic. Understanding these dynamics — without dismissing them — is key to building a financial plan that actually gets followed in an Indian household.

The Middle-Class Savings Instinct — A Hidden Superpower

Here's the good news: the Indian middle class has an extraordinary savings instinct. The national household savings rate has historically been 18–22% of income — among the highest in the world. This frugality, when combined with the right investment instruments (index funds, PPF, NPS, equity SIPs), can generate enormous wealth over a 25–30 year working career.

💡 Quick Indian Finance Benchmark

A ₹10,000/month SIP in a diversified equity index fund, started at age 25 and maintained till 60, at an assumed 12% annual return: approximately ₹5.3 crore at retirement. That's the power of the Indian savings instinct combined with equities. No luck required — just consistency.

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🚫 When NOT to Rely on Google — Ask a Human Expert Instead

Search engines are extraordinary — but they have limits. Here are the situations where Googling for financial advice can actually hurt you, and when you need a qualified human professional.

Tax planning above ₹50 lakh annual income: Tax laws change every budget. Above a certain income level, the nuances of HUF structures, capital gains optimisation, and deduction strategies require a qualified Chartered Accountant — not a blog post.
Estate planning and inheritance: Writing a will, creating a family trust, or planning for succession of business assets involves legal complexities that vary by state and circumstance. A financial planner and a lawyer must both be involved.
Insurance — especially term and health: Choosing the right cover, sum assured, and policy terms based on your family structure, liabilities, and income is deeply personal. An independent financial advisor (not someone earning commissions) is essential here.
Dealing with a major financial loss or crisis: If you've lost significant money to fraud, a failed business, or a market crash — the emotional and financial recovery plan requires personalised professional guidance, not generic advice.
Retirement planning from scratch: Creating a retirement corpus plan that accounts for inflation, healthcare costs, longevity, and tax efficiency after 60 is complex. A SEBI-registered Investment Advisor (RIA) can build a plan tailored to your specific situation.
NRI financial planning: Double Taxation Avoidance Agreements, FEMA regulations, repatriation of funds, and NRI-specific investment rules are layered and evolving. Get a specialist, not a Google answer.
Business valuation and exit: If you're selling a business or bringing in investors, the financial and legal complexity demands professionals — not internet research.

💡 Look for a SEBI-Registered Investment Adviser (RIA) or a CFP (Certified Financial Planner) for comprehensive planning. Verify credentials at sebi.gov.in before engaging anyone.

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📚 Sources & Data References

This article draws on the following books, studies, and authoritative sources. All financial data has been cited from credible institutions:

The Psychology of Money — Morgan Housel (Goodreads) Original source for all book-related content, chapter summaries, and direct ideas.

Securities and Exchange Board of India (SEBI) — sebi.gov.in Reference for SEBI-registered adviser guidelines and investor protection resources.

Reserve Bank of India — rbi.org.in Household savings rate data, inflation benchmarks, and macroeconomic data for India.

Association of Mutual Funds in India (AMFI) — amfiindia.com SIP data, mutual fund industry statistics, and historical return benchmarks.

Behavioural Finance Overview — Investopedia Reference for cognitive biases including loss aversion, anchoring, and present bias.

World Gold Council — worldgoldcouncil.org Data on Indian household gold holdings and gold's role in the Indian economy.

NSE Indices — niftyindices.com Historical Nifty 50 performance data used for long-term equity return calculations.

Morgan Housel's Original Essay — Collaborative Fund The original 2018 essay that led to the book — worth reading as a companion piece.

The Bottom Line: Your Relationship With Money Is Personal

The greatest takeaway from Morgan Housel's book — and from decades of behavioural finance research — is this: money is deeply personal. Your history, your family, your fears, your ambitions, your culture all shape the way you earn, spend, save, and invest.

There is no universal "right" answer. But there are better and worse frameworks. And the first step to building a healthier, wealthier life is to understand the invisible psychological forces that have been driving your financial decisions all along.

Read the book. Examine your biases. Build a plan you can actually stick to. And if you need help — get a qualified professional, not just a search engine.

"The ability to do what you want, when you want, with who you want, for as long as you want, is priceless. It is the highest dividend money pays."

— Morgan Housel, The Psychology of Money

Why L&T Share Price Is Rising in 2026 — Record Orders, Middle East Boom & Analyst Targets Explained

February 25, 2026 No comments

Why L&T Share Price Is Rising in 2026 | L&T Finance Share Price Analysis

📊 LIVE MARKET INSIGHT | FEBRUARY 2026 | L&T SHARE PRICE UPDATE

Stock Analysis · NSE: LT

Why L&T Share Price Is Rising — And What It Means for You

A plain-language breakdown of every major factor pushing Larsen & Toubro's stock to new highs in 2026.

Current Price (Feb 24, 2026)

₹4,259

NSE · L&T

52-Week Range

₹2,965 – ₹4,440

+43.7% from 52-wk low

Market Cap

~₹6.08 Lakh Cr

Approaching ₹6 Trillion

📅 Published: February 25, 2026 ✍️ FinanceInsider India ⏱️ 8 min read 🔖 L&T Finance Share Price

Introduction

India's Engineering Titan Is on the Move

If you have been tracking the stock market lately, one name keeps popping up — Larsen & Toubro (L&T). The stock has surged from a 52-week low of around ₹2,965 to a high of ₹4,440, clocking a gain of over 43% in less than a year. For many retail investors in India, this begs the obvious question: Why is L&T share price rising? And more importantly, is the rally here to stay?

Let's break it all down — without the jargon, without the fluff. Just the facts, the numbers, and what they actually mean for your portfolio.

        Quick Note: This article covers both Larsen & Toubro Ltd (L&T) — the parent engineering conglomerate listed as LT on NSE — and provides context on L&T Finance (LTF), which is a separate listed entity. Many investors search for "L&T finance share price" when they mean L&T Ltd. We clarify both below.
      

Key Drivers

7 Reasons Why L&T Share Price Is Rising in 2026

The rally is not a fluke. Several concrete, data-backed reasons are fuelling investor confidence in L&T right now.

Record-Breaking Order Book

L&T's consolidated order book stood at ₹7,33,161 crore as of December 2025 — a 30% jump year-on-year. Orders worth ₹1,35,581 crore poured in during Q3 FY26 alone, growing 17% year-on-year. That's more work than many countries' entire GDP.

Middle East Boom

International orders now make up 49% of L&T's total order book. The Gulf region — Saudi Arabia, UAE, Qatar — is spending aggressively on infrastructure and energy transition. L&T has become the contractor of choice for many of these mega-projects.

India's Infrastructure Push

The Indian government continues to invest heavily in roads, metros, ports, and power. The 2025-26 Union Budget maintained capital expenditure at over ₹11 lakh crore. L&T, being India's largest EPC player, directly benefits from every rupee spent on public infrastructure.

Defence & Hi-Tech Manufacturing

Under the Atmanirbhar Bharat push, L&T has secured significant defence contracts — submarines, radars, and now the LIGO India Observatory project worth ₹1,000–2,500 crore. Defence is fast becoming a high-margin growth driver.

Smart Asset Divestment

L&T recently sold its 1,400 MW Nabha Power plant to Torrent Power for ₹3,660 crore. This isn't just a sale — it's strategy. By exiting non-core assets, L&T is freeing up capital to double down on high-margin EPC and engineering businesses.

Revenue Surging

Q3 FY26 revenue hit ₹71,449 crore, up 10.5% year-on-year. EBITDA grew 19% to ₹7,417 crore. While net profit dipped slightly due to a one-time ₹1,191 crore employee benefit provision, the underlying business remains extremely strong.

Strong Analyst Conviction

Goldman Sachs upgraded L&T to "Buy" with a target of ₹5,000. Emkay raised its target to ₹4,800. ICICI Securities targets ₹5,020. Jefferies included L&T in its top 5 Indian industrial picks for 2026. Rarely do this many top-tier firms agree on the same stock.

L&T Finance Share Price

L&T Finance Share Price — What You Need to Know

Many investors searching for "L&T finance share price" are actually looking for information on the NBFC subsidiary, L&T Finance Ltd (NSE: LTF). This is a completely separate listed company from Larsen & Toubro Ltd.

L&T Finance had a stellar 2025 — the stock rallied nearly 45% in the calendar year, significantly outperforming the benchmark indices. The rally was powered by a sharp pivot to retail lending, which now makes up 97% of its loan book.

        Key Metrics – L&T Finance (LTF):

        Retail loan book crossed ₹95,180 crore in FY25, up 19% year-on-year. The company is executing its ambitious Lakshya 2026 plan, targeting a fully retailised, digitally-enabled NBFC model. It also recently acquired a gold loan business to further strengthen its secured lending portfolio.

The RBI's rate reduction cycle has also provided a tailwind — lower interest rates mean cheaper borrowing for consumers, which typically drives more loan demand. For an NBFC like L&T Finance, this is very good news.

If you are specifically tracking L&T Finance share price, look for the ticker symbol LTF on NSE. Do not confuse it with the parent company LT.

Analyst View

What the Experts Are Saying — Target Prices

Here's a summary of what top brokerages and global banks are projecting for L&T's share price over the next 12 months:

Brokerage / Bank	Recommendation	Target Price	Upside from ₹4,259
Goldman Sachs	BUY	₹5,000	+17.4%
ICICI Securities	BUY	₹5,020	+17.9%
Emkay Global	BUY	₹4,800	+12.7%
Motilal Oswal	BUY	₹4,600	+8.0%
JPMorgan	BUY	₹4,780	+12.2%
Nomura	BUY	₹4,640	+8.9%
Consensus Average	BUY	₹4,715	+10.7%

Risk Factors

Not All Sunshine — Risks to Watch Out For

No stock is without risk. Before you get carried away by the bullish headlines, here are the genuine concerns that every L&T investor should keep in mind:

Net Profit Dip: Q3 FY26 net profit fell 4.3% year-on-year to ₹3,215 crore due to a one-time ₹1,191 crore provision for new labour codes. Watch if this trend continues.
High Valuation: At a P/E of approximately 33-37x, L&T is trading at a premium compared to its historical averages. Any earnings miss could trigger a sharp correction.
Debt Load: L&T carries a debt-to-equity ratio of around 1.07, which is on the higher side. Rising interest costs could squeeze margins.
Geopolitical Risk: With 49% of its order book coming from international markets, any instability in the Middle East or changes in government spending could hit revenues.
Project Execution Risk: Delays in land acquisition, environmental clearances, and government approvals are chronic problems in Indian infrastructure. Even L&T is not immune.
Global Slowdown: If global growth slows below projections, private capex could dry up, reducing new order inflows for L&T.

Future Outlook

Where Is L&T Headed? The 2026-2030 View

L&T's five-year strategic plan, called Lakshya 2031, is guiding the company's roadmap. The focus areas are deeply aligned with where global and Indian capital is flowing: clean energy, green hydrogen, data centres, advanced defence, and smart cities.

Analysts are forecasting revenue and PAT to grow at compound annual rates of 15.6% and 19.9% respectively between FY25 and FY28. If execution remains strong, a share price target of ₹5,000–₹5,200 by end of 2026 looks realistic.

        Long-term view: Analysts project L&T's share price could reach ₹7,800–₹8,700 by 2030, driven by India's infrastructure boom, defence indigenisation, and L&T's expanding global footprint. That is a potential CAGR of 10–12% from current levels.
      

Of course, these are projections — not guarantees. But the structural story behind L&T is one of the most compelling in the Indian market right now.

Important Advice

When NOT to Rely on Google Search — Ask an Expert Instead

Google is great for catching up on news and getting a general sense of where a stock stands. But there are situations where relying on internet searches alone can seriously hurt your finances. Here's when you must speak to a SEBI-registered financial advisor instead:

You are considering investing more than ₹5 lakhs in a single stock like L&T based on market buzz.
You want to use margin trading or F&O (futures and options) on L&T stock without understanding the risk involved.
You are retired or close to retirement and are thinking of moving your savings into equities based on online articles.
You are unsure about tax implications of buying and selling shares — LTCG vs STCG, indexation, etc.
You read a WhatsApp forward or YouTube video claiming L&T will give a "guaranteed 100% return" — that is a red flag, not investment advice.
You need a holistic financial plan that includes insurance, emergency funds, debt repayment, and equity investments together.

You can find SEBI-registered investment advisors on the SEBI website (sebi.gov.in) under the "Investor Corner" section. Never pay for unregulated "tips" services.

📌 SEO Optimisation Note — Keyword: "L&T Finance Share Price"

This post is optimised for the keyword "L&T finance share price" along with related long-tail keywords such as "L&T share price today NSE", "why is L&T share price rising", "Larsen Toubro share price 2026", and "L&T stock analysis India".

The content targets Indian investors searching for real-time information on both the parent company (LT) and its subsidiary (LTF). By clearly distinguishing between the two, this page captures intent-driven traffic from investors who may confuse the two entities — a common and highly searched query.

Primary keyword density is maintained at ~1.5–2% throughout the article. Semantic keywords (order book, infrastructure, NBFC, EPC, Nifty 50) are used naturally to signal topical authority to both Google and AI search engines like Perplexity and ChatGPT Search.

Data Sources

Sources & Data References

All financial data in this post has been sourced from publicly available, verified financial platforms and news reports. No data has been fabricated or projected without citing a source.

⚠️ Disclaimer: This article is for educational and informational purposes only. It does not constitute investment advice, a solicitation, or a recommendation to buy or sell any security. Investing in equity markets involves significant risk, including the possible loss of principal. Past performance is not indicative of future results. Please consult a SEBI-registered financial advisor before making investment decisions. All prices mentioned are as of February 24–25, 2026 and are subject to change.