Identifying suitable investments
Avoiding Ad-hoc Investments and the ability to see through the sales pitch of any investment plan being marketed to you.
- Understanding basics of Personal Finance.
- Looking-Through the jargon to easily evaluate investment options.
- Evaluating your existing investments.
- Taking informed decisions on your investments.
We can help you understand basic concepts like Compound Returns, Indexation, Asset Allocation etc through simple examples. An understanding of these basic concepts and a disciplined approach will be the best way to take investment decisions. This will also help in evaluating present investments portfolio.
What our clients say
How do we get started
The steps are broadly as follows:
- A 30-45 min. Zoom Call/Personal Meeting to understand your investment philosophy, past investment experiences, professional & family situation and major Life Goals (free session)
- Equipping you with basic knowledge about various Asset Classes, their behaviour in terms of past returns and co-relation between them (Charges Rs. 5,100 + GST 18% payable at the time of booking)
- Another 30-45 min session for Joint review of your existing investments and evaluating their suitability to meet your Life Goals (Charges Rs. 5,100 + GST 18% payable at the time of booking)
- A 4th session where you will prepare your own investment plan (Charges Rs. 5,100 + GST 18% payable at the time of booking)
- Assistance in Executing the Investment Plan – Free
- Repeat step (3) after 3-4 months if desired by you ((Charges Rs. 5,100 + GST 18% payable at the time of booking)
What not to expect
- There will be No Investment Tips about shares / mutual funds etc.
- No Guarantee of Returns
- No ready answers to ALL your questions. The idea is to take you through a process so that you are able to come up with the possible answers yourself
- No discussions on Economy or Share Markets direction.
Yes, you can straight away book the review of existing investments.
I can guide you how to contact the Life Insurance company and how to check the details yourself. We can also book a free 30-min session to help you review the policy features and take a decision.
The desire to Maximize Returns will always lead to disappointment. No Mutual Fund scheme will always remain at the Top. In fact, the Top performing scheme ranking changes every month, if not every week. There is no way of predicting that a particular scheme will be the Top performing over next 1 year or next 3 years.
Analysing an investment product before having a clarity on your own goals is like putting the Cart before the Horse. The suitability of an investment plan can only be judged if one is clear on one’s objectives.
Once the investment objective is clear to you, ask for a written brochure of the plan being suggested by your banker/agent. Complete the 3-step process to evaluate the suitability:
- Prepare Date-wise Cash Outflows & Inflows
- Calculate IRR using MS Excel Financial Calculator
- Do a Sensitivity Analysis
Also, please be extra vigilant if you are being chased to ‘buy’ an investment plan
Yes, there are options where the returns are tax-free as per current tax laws. However, making tax-free investments should never be the only goal. Tax-free investment options have their limitations which may make them unsuitable for you.
The idea should be to compare post-tax returns from various options. A 5% p.a. tax-free return investment is unattractive as compared to a 9% p.a. investment taxable @ 10%
The losses are only notional (i.e. loss on paper) till you sell and convert them into an actual loss!! The decision will depend on various factors. Some factors to consider are:
- Quality of the companies whose shares you are holding
- Underlying portfolio of the mutual funds you are holding, and
- Your time horizon for these investments.
One must never expect share market linked investments to always show a profit.
No two individuals have the same requirements, temperament and mindset. What seems to be working for someone may not work for you. Also, people will brag about the superior returns but will keep quiet about their losses.
Understand your own goals & situation rather than focusing on the outside to plan your investments.
For youngsters, the most important factor that you should keep in mind is to “Start Early”. You have an investment horizon of 15-20 years or more. Even investing small amounts which remain invested for 15-20 years can build up to significant meaningful amounts.
Dedicate some time to learn a few basic Investment concepts.
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