Indians invented zero, but that’s where their knowledge of numbers ended,” a senior journalist once uttered in frustration. He was unhappy over his colleagues’ inability to understand and interpret data for readers. We function under the assumption that readers are averse to math, but would benefit from information and interpretation that can only flow from crunching numbers.
When it comes to writing on personal finance, the choice is not about whether to use numbers, but how to use them in a manner that is meaningful, instructive and above all simple. Most often, the distinction between intelligent investing and random investing is an understanding of numbers. Investors in stocks must know the difference between the price (rupees per share) and value (price to earnings ratio—PE) of a share.
Mutual fund investors should know why a fund priced at Rs 200 (its NAV) could be as good, or better, than one priced at Rs 20. People investing for dividend income must realise that the rate of dividend a company announces is only a fraction of the rate of return they will get on that company’s stock—the concept of dividend yield. All investors need to know the difference between absolute and annualised returns.
You don’t need a PhD in mathematics to know any of these, only a keen interest in numbers. It’s our job to understand the numbers and present them to you in an engaging manner. Readers would have noticed how differently we present data.
Our 8-page regular section Money Today Insight is a biweekly snapshot of the best options across a variety of instruments—stocks, funds, property, global investing, consumer finance and the unique Small Fortune page. Our distinction lies in what we give in this section, and how we give it. All four differences mentioned in the paragraph above are delved into in these pages.
Data are mere numbers. By making them describe a real phenomenon we turn them into statistics. By interpreting and adding context to statistics we get to indicators. Our attempt is always to give you indicators, not statistics or data. If you notice a number in the magazine that you can’t understand, do alert us and we will reach out to you with an explanation and, if needed, an amendment. Being number friendly is in our mutual self interest. For us, professionally; for you, personally.
