Saturday, May 4, 2024

KYC LINK For Investor to check Status and update it.

KYC Changes from Apr 01, 2024

As per the SEBI Circular SEBI/HO/MIRSD/FATF/P/CIR/2023/0144 dated Aug 11, 2023, as a part of risk management framework, the KRAs shall verify the following attributes of records of all clients within 2 days of receipt of KYC records:

PAN (including PAN Aadhaar linkage), Name, Address and additionally, the KRAs shall verify the mobile number and email id

If KRA is unable to verify the above attributes, such investors shall not be allowed to transact further until the attributes are verified. Please ensure to provide your valid contact details [Email id / Mobile Number] to KRAs.

Know your KYC Status and its Impact on transactions.


General Guidelines to Investors

Investor has to submit the valid documents to KRAs to remediate the KYC status to Registered / Validated.

Investors can go to their respective KRA websites and initiate the modification requests, or they can download the KYC form from KRA websites and submit to any of the investor service centers of AMC / RTA.

Investors to follow the steps given for modification, Email /Mobile number to be validated, and the other details entered by the investor will be validated by the KRAs with the official data base (such as Income Tax database for Pan, and UIDAI database for Aadhaar related validations)
Investor can use any one of the below given OVDs, Kindly note only when the Aadhaar is used as OVD and on successful validations by the KRAs – KYC status shall be updated as Validated.

o Passport
o License
o Proof of possession of Aadhaar number
o Voter’s Id issued by Election Commission of India
o Job card issued by NREGA duly signed by an officer of the State Government
o Letter issued by the National Population Register containing details of name, address.

Check your KYC Status

Please click the KRA site from the links and options given, input your PAN, and submit to see your KYC Status with the details of the proof you have submitted for your KYC.

CVL KRA →→  KYC Enquiry

CAMSKRA → →My KYC Status

NSDL KRA→ →Inquiry on KYC

NSE KRA→ → KYC Inquiry


VALIDATE YOUR CONTACT DETAILS in your KYC records by clicking your KRA links given below.





How to remediate your KYC status from Registered to Validated

When the KYC status is “Validated”, Investor can seamlessly transact in securities market without the need for resubmission of KYC documents. Investor needs to do the modification of KYC by submitting Aadhaar as OVD.

Following KRAs allow through the below links to remediate the status to KYC Validated for their investors.

CVL KRA → ***Aadhaar should have been already provided as an OVD, only those investors can validate their KYC using the above link


Please ensure to

1. Validate your contact details

2. PAN Aadhaar is already linked

3.Keep the mobile number registered with Aadhaar handy to update the OTP (One Time Password).

For more details click on link below

Saturday, April 15, 2023

Views published in ET "A portfolio turnover ratio of 2,300: should mutual fund investors be concerned?"

 A portfolio turnover ratio of 2,300: should mutual fund investors be concerned?

*Raj Talati, Certified Financial Planner and partner, ABM Investment*, says “The portfolio turnover ratio is going to be high whenever the market is volatile. Arbitrage takes advantage of that volatile market. Whenever the market is volatile, they get a higher cost of carry, and that is what they try to encash.”........

*Views published in E.T.".*

Views Published in Divya Bhaskar


Views Published in ET "Mutual-fund-advisors-ask-investors-to-invest-in-small-cap-funds"

Mutual fund managers and advisors can’t stop talking about the attractive valuation available in the market. They would also talk about how this is the right time to invest in equity mutual funds, especially in small cap funds. ETMutualFunds spoke to around six mutual fund advisors and they were unanimous that it is a great time to invest in stocks and equity mutual funds. They say even their interactions with fund managers give them the impression that everyone is upbeat about the prospects of  ..

Wednesday, January 18, 2023

Wednesday, December 7, 2022

Views Published in ET "Passive mutual fund AUM grows by 22% in 6 months on new themes, strategies"

Passive mutual fund AUM grows by 22% in 6 months on new themes, strategies

Passive investing has been gaining popularity in the last couple of years. However, passive funds have officially made inroads into retail portfolios in 2022 as big mutual fund houses have started to prioritise passive investing and are coming up with varied themes and new investing strategies in the passive space. As a result, the assets managed by the passive funds has sky-rocketed in 2022 so far.

Monday, April 11, 2022

My views in ET "Why are mutual fund investors in love with new fund offers (NFOs)?"

My views published in ET "46 Passive, 26 active fund NFO's collected Rs.52734 crore in 2021"

 46 passive, 26 active fund NFOs collected Rs 52,734 crore in 2021

My views published in ET "Should you invest in the new age sector fund"

 Should you invest in the ‘new age’ sector funds?

Answered Q & A in Economic Times dtd.08/04/2022




Monday, August 3, 2020

My views published on "Investing in gold" in Economic Times article "Is it a must to have gold in your portfolio"

My views published on "Investing in gold" in Economic Times article "Is it a must to have gold in your portfolio"

Wednesday, April 15, 2020

Thursday, December 19, 2019

Saturday, June 15, 2019

Invest directly in MF and save commission.

As always, Mutual fund Sahi hai has come up with another beautiful advertisement promoting direct investment in mutual fund, obviously with a caution "If you have knowledge of MF" and a disclaimer at the end.

It is a kind of ad which promotes to buy a toothpaste which you don't need to get a toothbrush free.

Have you ever thought why Virat Kohli or any of the best players inspite of being best, needs a coach. Does coach teaches them how to play, absolutely not.

Biggest role a coach plays is to guide them through their ups and downs, specially when they are performing well, that is the time they are prone to commit big mistake and hand holding them during lows.

Coach can help to see possibilities which you can't and they will make you stay focused on preparing and executing to meet the goal. They act as the lighthouse which is stationary and secure and provides a beacon to direct when you lose focus.

Investing or selecting a fund to invest in MF is not a big deal, but to stay focused and being rationale is.

That is where advisor comes handy.

A media house promoted platform is also publishing full page advertisement comparing extra money generated in 25 years, if invested directly or through MF distributor.

But the question of comparison arises if you invested for 25 years. Who will ensure, handhold and help you to make that journey of 25 years smooth.

Just seatback for a while and think whatever worth you are at today, was it possible to reach, if you wouldn't had an advisor.

*So don't be "Penny wise pound foolish".*

Just one right advise of advisor is worth much then saving few bucks by experimenting yourself.

Have a great weekend.

Raj Talati

Saturday, March 30, 2019

No IPL or Politics for us

The most hot topic of discussion or time-pass these days is IPL and politics.

Normally, a player have limited career. Inspite of being in form they get retired in late 30's or many a times even in mid 20's. Think of a person getting retired in 30's and kind of retirement planning he would require to live atleast 50-60 years.

Atleast for cricketers IPL came as the biggest saviour to boost their career and delay retirement.

Similar, is the case with politicians, they hardly retire. If retirement is enforced even at age of 91 years they make a headline.😜

Most of us are not a cricketer or politician or an actor, but luckily our career graph is much longer.

In the era of fast changing technology and being one of the youngest country, we might not have option to delay our retirement. As our job might become obsolete or will be taken away by an youngster.

*Skip one match of IPL or hot debate of prime time and plan for your retirement corpus judiciously during this working years, we won't have any IPL or political career to support us.*

Raj Talati

Saturday, March 16, 2019

Storms are inevitable

Investoshashtra !!!📜📜📜
इनवेस्टोशास्त्र !!!📜📜📜

Summer is next door, when it comes brings sand/dust storm with it. Sandstorms usually arrives suddenly in the form of advancing wall of dust and debris may be kms long and several feet high.

They strike with little warning, but best thing is they don't last long. If not handled properly It may damage our eyes, lungs or even result in big accidents.

Similar is the case with investing. Here are also Storms of uncertainty and volatility keeps striking irrespective of summer or monsoon in India, It will strike even if temperature rises in U.S.,North Korea, Europe,China or middle east.

Whenever, such storm of news flows, instead of being reactive we should look at our needs, goals and ask big question "does it  have any implication on my financial future."

If planned properly, you can sail through storm easily and reach financial destination without  being hurt avoiding  accidents.

So, don't make news to be *basis* of your investment decision.

Have a great weekend.

Raj Talati

Saturday, December 8, 2018

Lesson I learnt from a Mango farmer

Investoshashtra !!!📜📜📜
इनवेस्टोशास्त्र !!!📜📜📜

Just after 12-14 months of planting mango plant, if it's well grafted plant flower will start coming during the season, but first thing they do is pluck off the flowers.Next season again flower comes and are again taken off. They keep doing like this for few years. They don't let that flower to bear the fruit.

They will wait for plant to grow because they know if fruit starts coming out of that plant it would never grow to a full-fledged tree. It will not bear as much fruit as it could, if it bears too early.

This is what an investor must learn from farmer's wisdom, don't try to leave too early. This is the time to think about future as well and for bigger goals, liabilities and expenses in life.

So together with living in today, also *"plan for future as _that is the place you are going to spend most of your life._*"

If you start living too early, you might not be able to live a full-fledged life.

We have built habit of spending without planning, *since 2011 India's household savings has fallen from 26.1% to 16.3% of GDP.*

*Most surprising part is, in past consecutive 6 years personal consumption expenditure has outgrown household income. That means we are spending much more than our earnings.*

So this weekend let's learn and implement some of farmer's wisdom for creating a secured and safe future.

Have a rocking weekend.

Raj Talati

Saturday, November 3, 2018

Easiest way to evaluate Equities.

Investoshashtra !!!📜📜📜
इनवेस्टोशास्त्र !!!📜📜📜

Most of the investors during fall in equity markets become sceptical about it and about future of their investments.

I, suggest an easy 3 step decision making process which will be handy to decide whether you should hold on to equities or come out of it.

*1) Just ask yourself how you see our countries _economic_ future as far as income, spending, infrastructure, development, savings, education, power etc etc...*

If you have a conviction it is going to be *better or much better* compared to today. Then, here comes result of first test that you may continue with your equity investments or make fresh allocations as well.

*2) How Much time according to you it will  take to see few or all of above changes to happen. If answer is 3,5,10 or 15 years, then here comes answer for your time horizon to invest in equities.*

Let's say you feel there are challenges in short term due political uncertainty, geopolitical issues, crude, Inflation, current account deficit, fiscal deficit, imports, depreciating currency etc... but you are sure that we will be well off or _atleast better_ in 5 years then here comes your horizon to look for equity investing i.e 5 years.  If your assumption is 10 years then for you it would be 10 years.

But for few of you who feels nothing will change or economy will go in doldrums, then *please please* stay away from equities.

*3) Now, match your goals which you have tagged to equities with above horizon and stop worrying about day to day market movement.*

Have worry free weekends.

*_Wish you all happy and prosperous Diwali and New year._*

Raj Talati

Saturday, October 27, 2018

Future is product of preferences made today.

Investoshashtra !!!📜📜📜
इनवेस्टोशास्त्र !!!📜📜📜

Recently we conducted an Investor awareness program for investors of our association members. We had a capacity of 500 pax.

We invited India's renowned speaker Mr.Krishan Sharma and event was organised at one of the best venue i.e. INOX, Vadodara with food.

Only guests who confirmed their availability, were invited. To take care of last moment cancellation due to some emergencies or unavoidable situation we distributed additional 7% invites.

Each one of us worked really hard to ensure it's packed to capacity.

But to our surprise only 65% of investor turned up out of total invitees.

*I was wondering if we had invited similar no. of guests at same venue for screening of movie _"Badhai ho"_ which was running in adjacent screen, I am sure situation would have been totally different."*

First of all we would have got full capacity by may be calling only 700 pax instead of making over 3000 calls. Secondly, provisioning of 7% for last moment cancellation had to be brought down to 1-2%.

We all want to have entertainment in life so nothing wrong with it.But awareness, knowledge and preparing for future is equally important..

I, always believe majority of Investor's considers financial planning as last priority. Amongst few who are conscious they also have big gap in decision making and implementation or may be goes out of their focus in few years.

*Remember "Future is not decided by how much we earn, but by how we manage it."*

*This weekend give a serious thought and make financial planning atleast your 4rth preference in life.(After may be job, family and entertainment).*

Raj Talati

Saturday, October 13, 2018

*Is there a Big billion sale in Indian Equity markets too??🤔🤔🤔*

Investoshashtra !!!📜📜📜
इनवेस्टोशास्त्र !!!📜📜📜

Word *Sale* made me puzzled of what it actually means.

As per dictionary Sale means "Period during which goods are sold at a discount to it's MRP (Maximum retail price)."

*The big question is who decides an MRP and does it remain same during the lifetime of the product. _Obviously no_. It keeps on increasing or decreasing depending on seller's wish.*

So only aspect which decides *sale* is real or not is the *value* we get against such *discounted products.*

That is the reason 90% (In many a cases 100%) of shopping my wife does online, goes for a return. (Thanks to free return policy😜😜). Reason is inspite of buying it in a sale she doesn't find value and that shows how word "Sale" is being manipulated by seller's.

Similarly, I have been getting lot of forwards from advisors as well as investor's regarding Big Billion sale going on in Indian Equity Market.

Big question strikes me again can this be termed as sale.May be "Yes" reference to historical prices, as it is available at big discount. *But what about value against the price we will be paying even now.*

Remember "The markets is most intelligent and dumbest at times". It's our job to find when it is behaving as a dumb (Opportunity) and when intelligent (Safety).

Looking at present macros like ; Crude price, Depreciation of Rupee, Increasing interest rate, Challenges with fiscal prudence, current account  deficit, political uncertainty, trade war etc etc, I don't think market is behaving like a dumb at all.

Actually, It was running much ahead of fundamentals due to heavy liquidity and Tina effect (there is no alternative).

*"Market can remain irrational for longer than you can remain solvent - John Keynes."*

*So do not try to leverage your equities looking at "Sale" even now and stick to asset allocation.*

Remember, it doesn't mean stopping SIP's these are the times it is best suited for.

Have a great weekend.

Raj Talati

Saturday, October 6, 2018

Your Outlook decides your fate

Investoshashtra !!!📜📜📜
इनवेस्टोशास्त्र !!!📜📜📜

Once a wise man was taken to a construction site. He was blindfolded and given a task of identifying what job 3 people standing in front of him do, by just asking one question.

He thought for a while and asked each one of them "What does you do at this site".

First one replied I am laying bricks, second one replied building a wall and third one *I am building a beautiful House 🏠.*

For same question there were totally different reply *although all of them doing the same job.* Which also explains reason for kind of income they earn.

Same is true with investors, there are the one's who just enters the market to trade, other set of people who speculate or follow herd mentality enters the market to make quick gains and very few comes with clearcut vision of *building a beautiful House 🏠.(Wealth creation or achieving a long term goal.)*

So the gains are dependent on outlook or purpose either lay a brick(trader and have small gains), build a wall(speculator - gains when calls go right and lose when it's wrong) or can be an investor who dreams, lay down a plan and work for ultimate final goal ignoring intermittent hick ups.

*This week just ignore noise around, think of your goal and  stay committed, everything else will automatically fall in place(But ensure you goals are long term).*

Raj Talati

Saturday, September 29, 2018

"Experience should define your age and not no. of years".

Investoshashtra !!!📜📜📜
इनवेस्टोशास्त्र !!!📜📜📜

Just watching an advertisement of Flipkart which defies age related stereotypes.(Link : ) Very often we deny ourselves opportunities and experiences because we are being afraid of failed or judged by others.

Do we stop driving vehicle after an accident or do we stop living life because of a big failure.Obviously no, rather *we count it as an experience and learn lessons for future to be more wiser.*

But, why is it that when when it comes to investing we consider our mistake as permanent. If we dig dipper into it to find reasons, *It can make us wiser investor  to be benefited out of it next time instead of falling prey to it.*

The best example is recent turmoil in mid and small cap segment which *would have been sensed by any experienced advisor more then a year back.*

There were investors who kept pumping money by ignoring valuations dazzled with charts, returns and growth shown by newspaper,NFO's, business channels and even business hungry distributors.

So, there is nothing wrong in investing in equities or even mid and small cap stocks or companies. But try to be wiser with your experiences instead of moving away.

*_Financial Advisor wisdom not only comes with the knowledge and experience he have, but is much wiser because of lessons learned from mistakes done in past._*

*So you can be wiser by experiencing mistakes yourself or can become one by hiring a financial advisor.*

Have a great weekend

Raj Talati

Saturday, September 22, 2018

"Defining true friendship"

Investoshashtra !!!📜📜📜
इनवेस्टोशास्त्र !!!📜📜📜

Sorry for using true before friendship, I believe it's granted that friendship is always true. But I was digging little hard how can we define it. I came out with following criteria.

It's like you understand each other by just looking or talking each other and many a times even without talking.

They will abuse you, fight you, pull your leg, try to do everything to irritate you and even calling with wierd names. (My friends can understand which names I am pointing to😜). *There is only one relation where you can be yourself and are least bothered what others think because of your social, financial or even marital status.*

*_They will forget thousands of reasons which can break it but don't need one reason to make it everlasting._*

It's difficult to have both quality of a true friend and wisdom as well as professional qualification in a financial planner.  *But there are some basics which a financial planner should possess like: being Loyal,Good, helpful, understanding, truthful, trustworthy, supportive, always with you, intelligent and with little sense of humour.*

*_Like friends they should never judge you, help to avoid mistakes, take informed decision, guide and continuously counsel for a successful financial future._*

"If you are really rich can you find an hour a week for your friends." -  P.V.Subramanayam

Take some time out with  friends this weekend to make it wonderful.

Raj Talati

Saturday, September 15, 2018

Every seat is a Hot Seat

Investoshashtra !!!📜📜📜
इनवेस्टोशास्त्र !!!📜📜📜

Most of the time seating at home and playing "KBC along" is totally different then  being a contestant. In playing along you have hardly anything to loose. So you play it for fun, but if you get a chance to play in front of Big B, situation might be totally different. Inspite of knowing an answer just in pressure you go for a lifeline or give a wrong answer.

A wrong answer before second leg won't affect much, but any wrong answer after 2nd stage of Rs.320000 comes with a big cost. That might be the reason many contestants instead of trying a sure guess to double prize money, settles  down may be for 12.50 or 25 or 50 lakhs, as a wrong answer at this stage can bring them down to Rs.360000.

*The most reliable and consistent lifeline at this stage of game is expert advice*. There might be cases when they would say sorry for not knowing the answer *but I have hardly come across an instance when they went wrong. The irony is you can use this lifeline only once.*

Thank god!  there is no such limitation in real life.You can have a reliable advisor, specially in financial planning who will always be there to help and guide you to path of success.

*In absence of good advisor most of the time investors makes big mistakes time and again, to settle for a lower value (3.60 lakhs).They needs to make big compromises later in life instead of making it bigger and better.(may be 50 lakh, 1 crore or even a jackpot).*

Advisor helps to avoid mistakes and handholds you in tough times to achieve goals comfortably.

*Good things in life comes with a price, but value and wisdom comes with it is - _priceless._* Only one right advise can make good of cost paid during lifetime.

*So don't be Pennywise and pound foolish.*

Have a great weekend with Bappa.
*Ganpati Bappa Moriya*

Raj Talati

Saturday, September 8, 2018

*Time to reset expectations*

Investoshashtra !!!📜📜📜
इनवेस्टोशास्त्र !!!📜📜📜

We are again entering election season, whereby every political leader or party will try to divert attention from real issues and divide us on the basis of religion and casteism.

"Rome was not built in a day and India is an under construction country, thodi dhul to udegi". We are at an inflection point and need to overcome such pity issues. *It's time to reset expectations and concentrate on bigger issues viz employment and housing for all, better cleanliness and hygiene, medical facilities, education, infrastructure etc.*

Similarly, I think it's time for investors to reset their expectation from equity investing as well.

Historically, index has given an average return of 15% and we assume it as an standard for calculating future returns for financial planning.

But, we need to understand logic behind the number 15%. Historically we have seen average inflation of 8-9% and equity generated real return of 6% (15%-9%) (net of inflation).

Now as we know RBI/MPC stated objective to keep inflation in 4% +/-2% range.

If we add real return of 6% then figure of 11-12% will be genuine return expectation from equity over a long term.

Secondly, enough liquidity is flowing in equity market due to TINA effect (there is no alternative for investment) making it more and more costlier, so chances of making additional brownie point there is also limited.

*So, It's time to reset return expectations and alter your financial plan, otherwise chances are high that you might end up way short of required amount.*

Have a fantastic weekend.

Raj Talati

Saturday, September 1, 2018

What is the guarantee of Guarantor

Investoshashtra !!!📜📜📜
इनवेस्टोशास्त्र !!!📜📜📜

Recently, I come across an advertisement wherein a company has put big signboards around the city guaranting income for 9 years @9%, *by purchasing a pre leased commercial property through them.*

On website it's mentioned that they lease property to IT companies. Also occupancy or non occupancy doesn't impact Investors return of 9%.

As a financial planner when I digged into the offer found following points to ponder for investors, before falling prey to it :

1) Price of property is decided by them: Even in this bearish phase they dictate their price and inflate it, making it costlier for investor.

2) Rate of return@9% is not adjusted for inflation. Assuming even 6% inflation your return would be meagre 3% from very next year and will keep going down with every passing year. After 6 years effective real return would be negative.

3) Income tax on rental income : Obviously person buying such a costly property must be falling in top tax bracket.So if accounted for tax their is hardly any income.

4) Maintenance and wear and tear.

5) Property tax - Being a commercial property taxes are going to be high.

6) They are giving post dated cheques as a guarantee for rent.PDC's really😖😖

*_The big question is what is the guarantee of Guarantor._*

*With a little common sense, a little patience, and a little sense of humour you can live well on this planet - W.Somerset Maugham*

When we all know rental yields are in the range of 3-4% then why we fall for offers which is *too good to be true.*

It always helps to have a professional by you side, who can guide,analyse pros and cons and help you take a informed decision.

*So next time whenever see such lucrative offers think twice before investing or contact a financial advisor to help you with.*

Have a rocking weekend.

Raj Talati

Saturday, August 25, 2018

What if God goes against you

Investoshashtra !!!📜📜📜
इनवेस्टोशास्त्र !!!📜📜📜

*What if God is against you*

We recently witnessed the worst flood in nearly a century in God's own country - Kerala.Hundreds of people died, more then 33000 people rescued and estimated 13 lakh people took shelter in camps.

This is not the first instance of such natural disaster. Every year India's one or other part is divastated by either flood, landslide, tsunami, cyclone or earthquake.

It keep reminding us that in the race of development or growth *we are killing our own mother earth.* That might be the reason God is annoyed of his own kids.

Can anyone in this world save us from god's fury anwer is obviously "no",One need to handle hardship and physical losses himself.

*But to be precise "Yes" there is something which can save us from it's effects.*

For financial losses we as a mankind have created a wonderful tool which can even challenge God and the *weapon is Insurance.*

Many a times we ignore most important aspect of finance rather foundation of financial planning i.e. *Insurance.*

Most of the people see it as a  cost, but fact is *Insurance is financial guardian of our future and dreams. _It ensures and provides financial security at a nominal cost._*

_So, this weekend just check whether your financial guardian is capable enough to cover your assets and dreams._

*Happy Onam and prayers for people of Kerala. I can assure that whole of India stands with you. We will re create a Kerala which even god will be envious of.*

Raj Talati

Saturday, August 18, 2018

Hard work smart work

Investoshashtra !!!📜📜📜
इनवेस्टोशास्त्र !!!📜📜📜

Since my childhood, I was a bit chubby and worked really hard to come in a perfect shape😉.

The best thing which helped me is brisk walking. But was never satisfied and started running, Inspite being Asthamatic.I presumed that exercise means perspire, exhert and to get tired or exhaust.

Yoga changed my perception of fitness. Fitness is not too much of physical exhertion. Pranayam and yoga with proper knowledge of inhalation, hold and exhalation of breath can give much better result without force or strain.

Specially, in 40's running or gymming may cause more harm then to help, resulting in problems related to back or knee.

So, it is not essential for achieving anything only way is to hard work, *But smart work can get better results with minimum strain.*

Many a times investor also over work on their Investments. Planning for retirement and checking portfolio daily or weekly doesn't result in anything more then to damage it. *Investment also requires right mix of inhalation (accumulation), hold(gestation) and exhalation (distribution) to have healthy financial life.*

So, try not to exhert and smartly achieve desired goals.

Raj Talati

Saturday, August 11, 2018

*Loan vs Investments*

Investoshashtra !!!📜📜📜
इनवेस्टोशास्त्र !!!📜📜📜

Today I was surprised to see board reading "Buy clothes on Easy EMI".

We are still a developing country, but our spending pattern can amaze even developed countries.

That made me think actually from a consumer perspective, loan and Investment are two sides of same coin. Both of them fulfill a person's desire which is not affordable today. Loan given instant gratification whereas Investments doesn't.

Then why is loan a cuss words, while savings and investments are habits taught us from childhood.

In case of *loan we trade our future income today.* As we all know future is uncertain and tomorrow's expense are going to be much more than what it is now. *So, when it's not affordable today, how will it be paid tomorrow.*

Secondly, even in future needs will keep escalating, how that will be taken care of.. which might prompt for another loan and drag us to never ending vicious circle of EMI.

It's prudent to understand, impulsive buying on loan (In form of credit card, personal loan or consumer loan) might give temporary delight, but comes with penalty in the form of higher interest and a never ending stress, whereas buying it with own savings or investments gives satisfaction and contentment.

I think that was the reason our parents used to enjoy and cherish their big purchases. As they used to plan, work hard and compromise on many small things to buy it. *Every purchase was a long awaited dream and so used to carry enormous value to them.*

So, try *atleast never to buy your WANTS on loan* and *plan in advance for your NEEDS as well as WANTS* to avoid your financial future from getting derailed.

Have a wonderful debt free weekend and life ahead.

Raj Talati

Tuesday, August 7, 2018

Meaning of success

Investoshashtra !!!📜📜📜
इनवेस्टोशास्त्र !!!📜📜📜

*Meaning of success*

Yesterday, I got opportunity of listening to Gaur Gopaldas Live in one of the conference.

He beautifully explained how this generation has moved up ladder of success very fast. We all are proud to be successful...but irony is how many of us *feel successful..* being successful is what others think about us and *feeling successful is from inside.*

Happiness has nothing to do with how much you own. That is the reason inspite of being more successful compared to last generations, we are less happier and more stressed, depressed and anxious.

The only reason is we unnecessary do things we don't want to. Certain things  can't be avoided like job, profession or business even if you don't like because you have mortgages, EMI and bills to be paid.But what about rest.

Why not to try utilising balance time in what we love to do.Which can make me feel successful of having power with me to do what I want to and not have to.

Similar, is the case with financial planning. People keep dragging it, inspite of having no in depth knowledge, passion and zeel. By the time they realise they messed it up, it's too late which results in depression, stress and anxiety.

So, start living what you love to do for everything else there are people who love to do it, so outsource it.

"Not only Be Successful but FEEL successful."

Have a rocking weekend.

Raj Talati

Saturday, July 21, 2018

Advisor Zaruri hai to ensure investment sahi hai..

Investoshashtra !!!📜📜📜
इनवेस्टोशास्त्र !!!📜📜📜

Few days back I was watching again movie "PK" another excellence featuring Amir.

In a sequence he explains how same word "Achha hai" have different meaning, the way it is spoken..

"Yaha Bolte kuch aur hai matlab kuch aur nikalta hain, ek hi Shabd ke char char matlab hai...if you shake your head and say Achha is different then said with eyes wide open, if spoken loudly is different from spoken softly.."

Similarly, in investments products or asset classes are same but for every investor it carries different meaning..

A PPF deposit for businessman is different from an employee, it's different for a young graduate then a married couple or couple with kids. It's different for one who has bigger future needs with lesser income, from one who is financially free.

So investment in Mutual fund/ PPF/ Insurance/ Real Estate/ FD/ Gold is Sahi hai.... but advisor bahut zaroori hai to decide and guide which investment and for whom."

So this weekend instead of deciding which product "Achha hai" and end up with an alien (PK😉)👽 try to find kaunsa advisor Achhaaa hai☺☺.

Raj Talati

Saturday, July 14, 2018

Overplanning kill your future dreams

Investoshashtra !!!📜📜📜
इनवेस्टोशास्त्र !!!📜📜📜

Roti, Kapda aur Makaan (Food, Clothing and Shelter) is the basic necessity of every individual. Food and clothing is still not that difficult manage. But Makaan has become a distant dream for many.

In recent past lot of my young investors, who are in their late 20's and early 30's went for buying a house. Most of them are just married or married with one kid.

Most surprising is the house they are buying is 3 BHK or 4 BHK.

When asked why not 2 BHK their reply was tomorrow when we have kids and when they will grow they would need 1 room and  other one is for guests or parents.

First thing is that in Indian context normally kids tend to sleep with parents till the age of 7-8 years in some cases even more. Secondly as working couple, there are hardly any guests which visits them regularly, apart from own parents.

So most of the time atleast 1 bedrooms is going to be unoccupied.

Then why to stretch your finances to go for a house which eats up all the savings leaving you with EMI which makes today's life more vulnerable.

In many a cases EMI is as high as 60% of take home against which *rented house is costing hardly 3-4% of price.*

Most importantly being young not yet settled in carrier what if need to face  a job loss.

Over-planning results in stress and anxiety.

On a lighter note, the way our habit of eating out is increasing my wife always tells me that very soon you would be advising you clients to buy a house without kitchen. (Think how much you can save😉😉)

So don't fall in trap of over-planning and have a stress free weekend.

Raj Talati

Saturday, July 7, 2018

We are humans not computers.

Investoshashtra !!!📜📜📜
इनवेस्टोशास्त्र !!!📜📜📜

Every person in our life whether it's our life partner, busineas partner, friend or family have some distinctive qualities which bonds our relationship.

Why is it that later on, we start expecting them to be perfect or to be the way we want. Every individual in this world is unique and none of them is perfect. So why don't we accept them the way they are.

On a lighter note the way Raj of DDLJ says "मुझे तो कोई एक लड़की पसंद आ ही नही सकती....अब किसी की आंखे अच्छी है, तो किसी की नाक अच्छी है, किसी के होठ अच्छे है तो किसी के कान"! It's a different issue that even he understands mistake and settles for one at the end.😉

Born in computer age, makes me think that our brain is also getting programmed like computers. The way computer understands only 2 outcomes (binary language) i.e. 0 (wrong) and 1(right), we are also expecting our relationships to be only (1) perfect.

But life doesn't come with only 2 outcomes and *individuals are not computers.* _There are some good things in everyone to cherish about and not so good things to ignore._

Even investing is about understanding distinctive quality of each and every asset class.

Nothing wrong in investing in Gold, FD,  PPF, NPS, Debt, Equity or Real estate.

Why would you invest in equity at the age of 75, when you can comfortably live remaining years without affecting your blood pressure jump due to sudden fall in markets.

Every asset class has it's own merits as well as demerit. So understand asset classes and make a winning team by combining them.

So listen to this Raj😉 and go beyond 0 and 1 in analysing your investments or personal relationships.

Have a wonderful weekend.

Raj Talati

Saturday, June 30, 2018

Don't gamble with Yellow sign of fuel Gauge

Investoshashtra !!!📜📜📜

Today morning while on my way back from jogging, I saw a person riding on his bike and pushing other vehicle which ran out of petrol.

Whether it is laziness or illogical thinking that people keep testing their vehicles fuel efficiency and most of the time end up running out of gas and in accordance with Murphy's law "at a location where there's no gas station".😔😔

Similar is the situation of most of the millennials. Inspite of having a good take home salary they end their month dragging their vehicle to the next fuel station, with the help of friend as the last rescue (who is more of a enemy in mask of friend named as credit card or consumer loan.)

Burdened with big EMI's, partying with friends, going to pub, restaurants, vacations, latest gazette, big billion sale, impulsive buying is the way of life for them.

Friends and relatives can push their vehicle to fuel station just once or  twice.Then a stage comes when they are hardly left with any fuel and end up in dragging their vehicle of life to reach fuel station(Salary day). What if the vehicle breaks down (you lose your job or some medical emergency comes).

So instead of living life on the edge start live it smartly, start a #Good EMI. ( )

Good habits are hard to form but very easy to live with.

This weekend have fueltank full of happiness.

Raj Talati

Saturday, June 23, 2018

Which songs always remain in our playlist


Have you ever thought which are the songs which will always remain in our playlist. Is it the most hit songs(Honey Singh types- दिल चोरी साड़ा हो गया...), trending nos. (रंग दे तो मोहे गेरुआ) or most viewed one ( दिल पे पत्थर रख के मुँह पे मेक अप कर लिया - 21 crore views). Mostly none of them.

Our playlists have songs which are close to our heart, they may be enjoyed listening with friends on a Manali trip (Why Manali-as I have some😉) or with family on a road trip, may be from a movie you can connect with or may be the one with extraordinary music, lyrics and singer combo.

So it has nothing to do what others like or want, it has to do more with your own inner happiness and delight.

It's sort of personalisation. Isn't it!!

Then why we try to copy others when it comes to investment. Why we invest in Gold in 2012, real estate in 2013, Equities in 2007 and mid and small cap funds in 2017-18.

Just go with the songs (investments) which you enjoy, I like combination of Kishore,Asha,Gulzar and R.D.Burman, but many of you might have a different choices. So my asset allocation or investment in equity or real estate or gold can't be like yours.

Even siblings can't have similar asset allocation the way they don't have similar playlists.

This weekend decide on your favourite investments (playlist) which suits your goals, risk profile, income, expenses, assets, liabilities, responsibilities, health condition etc etc..and enjoy musical journey of life.

Have a musical rainy tip tip barsa Paani weekend!!

Raj Talati

Saturday, June 16, 2018

"Life is simple, we complicate it"

Investoshashtra !!! 📜📜📜
ईनवेस्टोशाष्त्र !!! 📜📜📜

I was watching a TED talk by Jon Jandai a farmer from Thailand, he has beautifully explained how simple life is.

Mostly, we are not able to differentiate between our needs and wants. Needs are basic necessities the way Jon explains but there is no end to wants.

At times society we are living in decides what we should buy. We know a small car will suffice need to commute small distance we need to travel daily to office or shop or showroom, but still settle down on buying a luxurious car on loan.

I heard lot of people saying "Money can't buy happiness but I would prefer to cry in Mercedes then in bus".But what if Mercedes is the real reason behind sadness.

To achieve Nirvana in this world you can follow path of Jon Jandai. But if you find it difficult then financial planning can be the only option.

It helps to understand and decide your needs and wants,to overcome peer pressure of the society, quality time with family & friends and be secured about  future.

I think that is what we wish in life.

This weekend decide how to make life more simpler, so that it can be happier (even in a Alto), healthier and satisfying.

Raj Talati

Saturday, June 9, 2018

Investment is not buying Vehicle

Investoshashtra !!! 📜📜📜
ईनवेस्टोशाष्त्र !!! 📜📜📜

This week we decided to buy new vehicle for my wife.

Since then only thing we can see around is different vehicle options, color and look.Even while riding on road or standing on signal instead of looking at  the beautiful girl standing besides me, I was lookng at her vehicle😉😉.

I was surprised by my behaviour, untill last week inspite of everything being same it was non existent for me, and after 2-3 months of buying the vehicle everything again will be non existent for me. Rather I would be list concerned with even color, model or brand WE BOUGHT.

It reminds me of investors who invests on their own and falls prey to such behaviour.

Whenever they have surplus money just invest looking at what everyone else is investing in or most fancied product or asset class in the market. They forget purpose of investment and in many a cases even purpose is undecided.

But investment is not like buying a vehicle, TV, refrigerator or Home theatre. It is like growing a plant, it needs regular care, watering, nurturing and  even trimming as and when required.

So it's always better to have a good financial gardener who will help and nurture to blossom garden of your Life.

Have a blooming weekend.

Raj Talati

Saturday, June 2, 2018

This investment makes us Stupid

Investoshashtra !!! 📜📜📜
ईनवेस्टोशाष्त्र !!! 📜📜📜

Recently while reviewing portfolio of a new investor, I recommended him to surrender high premium traditional insurance plans.

But the problem is inspite of paying premium for 3 years he is not getting even 40% as surrender value. So instead of surrendering he wishes to continue with it for the full term.

In behavioral finance we call it "Sunk cost fallacy".

For example :
-‌I wish to take a gym membership but can't. Reason, I bought a treadmill 6 months back which I hardly use.
-‌Keep watching a pathetic movie till end which costed your pocket 500 bucks or overeating at a restaurant as you ordered more just to get money worth.

We always live with a misconception that we make rational decisions based on the future value of objects, investments and experiences.

But the fact is our decisions are tainted by the emotional investments we accumulate.More you invest in something the harder it becomes to abandon.

Sunk cost fallacy makes us stupid.

Try and get rid of sunk cost fallacy in your investments for a better financial future.

Raj Talati

Sunday, May 20, 2018

*Death is the only guaranted gift of life!!*

Investorshashtra !!! 📜📜📜
ईनवेस्टोशाष्त्र !!! 📜📜📜

Now a days *Murder, Suicide and accident* are the news which fills each and every page of newspaper.It is so common that Divya Bhaskar a leading daily who started a movement "Positive Monday" is forced to cover atleast one or two such news on every page by giving excuse "required to know".

Our reaction to such news is just read the heading check for any known names  and breathe a sigh of relief that no one is from our known circle.

*Only difference with me is for few moments I just imagine financial situation of the family and instead of praying for RIP, I first pray to God that deceased must have had enough coverage to provide financial security to his family.*

_Like they say "Only 'love' which comes with guarantee in life is 'parents love'_ and *only guarantee "life" comes with is Death.*

So, if you do not have enough insurance coverage for your family's financial security, just for a moment try and put your name in that news *(God forbid)*.It will make you understand it's real need.

We all know we are going to die. *But in absence of proper financial planning-if you die early your family will suffer and if you live longer both you as well as your family suffers.*

"So, this weekend just check for your insurance needs and cover it." *(Only term Insurance),*

Have a positive weekend.

Raj Talati

Saturday, May 12, 2018

Swachh financial life Mission !!!


Our PM Shri Narendra Modi embarked a revolution on birth date of Father of our nation in 2014 named *"Swachh Bharat Mission".*

The mission aimed to achieve a swachh bharat by 2019 as a fitting tribute to Mahatma Gandhi on his 150th Anniversary..

Lot of debate can be done about effectiveness of mission. But I think everyone will unanimously agree that it brought a big change in our mindset and specially of next generation. I don't have any doubt that our next generation will have a *real swachh bharat.*

Habits are difficult to change whether it is related to cleanliness of our surroundings or *finances*. So keep. Bharat clean but do not forget cleaning up your financial life as well.

*Financial life cleanse doesn't require too much of time. Only thing it needs is determination, decision, action and little professional help.*

So this weekend:

1) Get rid of Investment done in obligation or low return giving insurance policies.
2) Buy a term insurance.
3) close down high cost loans by withdrawing low return investments.
4) Compare returns net of taxes.
5) check asset allocation - don't overboard any one asset class.
6) have adequate health coverage
7) consult a professional financial planner.
8) don't leverage...never ever take loans for investment.
9) Have proper and updated record of investments and discuss it with your spouse.
10) make a will.
11) reduce dependence on credit card.

*Have a Swachh Financial Life.*

Raj Talati

Saturday, May 5, 2018

"Goal are guesses"


Start of academic session was most exciting time when I was a kid. The smell of new books📖, enjoyment of writing in a new notebook, wearing new uniform, meeting friends etc etc...

I used to make detailed time table for entire day...when will I sleep, when will be the play time and specially dedicated time for studies. Not only that within study time it was fixed which day which subjects needs to studied.

But within few days time table used to become just a show piece on my study table.

Similar is the case with financial planning. Lot of clients comes to us understanding need of financial planning , fully motivated and committed .

Within a year or two goals and motivation gets lost in between.. and they just remains guesses without any action.

Realisation and regret comes when actually goal falls due.

*"Your level of success is determined by your level of discipline and preservance"- Annonymous*

Being  kid we had liberty of taking resolution again for the next year to be more disciplined.. *but being adult we can't afford it.*

Have a wonderful weekend.

Raj Talati

Saturday, April 28, 2018

Are Disclaimer's and warnings getting robotic ???


"If necessary due to a sudden change in cabin pressure, an oxygen mask will drop from the panel above your seat.Reach up and pull the mask to your face. This action will start the flow of oxygen. Place the mask over both your mouth and nose."

We have heard above warning with demo every time we onboarded a flight. Inspite of that many pessengers on Southwest flight 1380 seemed to be erroneously using their mask.

Flight almost descended 20000 feet in 7 seconds, a women killed when she was partially blown out of a broken window not wearing her seat belt.

It is a normal human behavior that we get so habituated of warnings and disclaimer. It becomes almost robotic when you memorize it and looses it's significance.

Specially in Investment world every one of us ignore such disclaimer's as they are very lengthy and Ambiguous.But later on play blame game.

Let's today remind ourselves of 3 disclaimers which are of extreme importance in present scenerio :

1) Mutual Investment are subject to market risk.
2) Past performance is not necessarily indicative of future performance of the schemes.
3) Please consult your financial advisor to know how "Mutual fund is right (Sahi hai)" for you.

So never ever ignore fine prints in Investment. If not sure it's better to consult a professional.

"If you think financial planners are expensive, try ignorance".

Have a great weekend.

Tuesday, April 24, 2018

Ensure this fund doesn't imbalance your Retirement



Ensure this fund doesn't imbalance your Retirement

Mutual fund is witnessing historical inflow for last few years courtesy TINA effect (There Is No Alternative for Investment) and Demonetization.

The biggest inflow came in category named "Balanced Fund" which is a quasi Equity category having minimum equity allocation of 65%, actually most of the time funds are having equity exposure of more than 70-75% in equity in it. This category grown the more than 9 times in last 4 year's.

The reason for big inflow was not for some genuine reason but was for the reason that many fund houses adopted a strategy of declaring monthly dividend ranging from 9% to 12% per annum.

Most of the FD investors and senior citizen tapped this category looking at high dividend payout and decreasing FD rates "without understanding risk involved."

Untill now all such investors who switched to this fund from their traditional conservative investment are having a ball of a time..but remember every party needs to end... today or tomorrow even this party will end.

My worry is for the investors who are dependent on this income. If market falls these funds will also fall in proportion to it and dividend  will make it more worse.

Just to illustrate if you had invested Rs.100000 in one of the biggest and famous balanced fund and have taken a dividend option with payout @12% per annum since 01/01/2008 with all the ups and downs it's value as on 01/04/2018 would have been 23752. It's CAGR return comes to 7.12% worst then bank FD.

Above scenerio we are discussing during a bull period where for last four years market has given us double digit returns.Think of a longer bear cycle.

Second important aspect is dividend is  taxable from this April@10%, effective rate for investors  actually work out to be  12.942% for investors.

So, if you have made such Investments in last 2 years in any such fund on advise of your banker or a MF advisor friend and you don't want your retirement to be at Mercy of a pity advise or markets, it's the best time to review such Investments.

Don't allow balance fund to imbalance your retirement.

Raj Talati