My article in ET on *"Corona crisis is teaching millennial investors importance of financial security".*

Click here to read complete article :

https://economictimes.indiatimes.com/mf/analysis/corona-crisis-is-teaching-millennial-investors-the-importance-of-financial-security/articleshow/75152295.cms

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.

Regards,
Raj Talati
www.rajtalati-abminvestment.blogspot.com

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._*

Regards,
Raj Talati
www.rajtalati-abminvestment.blogspot.com

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).*

Regards,
Raj Talati
www.rajtalati-abminvestment.blogspot.com

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

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

Just watching an advertisement of Flipkart which defies age related stereotypes.(Link : https://youtu.be/3WFGHCqC_1c ) 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

Regards,
Raj Talati
www.rajtalati-abminvestment.blogspot.com

*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.

Regards,
Raj Talati
www.rajtalati-abminvestment.blogspot.com

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.*

Regards,
Raj Talati
www.rajtalati-abminvestment.blogspot.com

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.

Regards,
Raj Talati
www.rajtalati-abminvestment.blogspot.com

*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.

Regards,
Raj Talati
www.rajtalati-abminvestment.blogspot.com

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☺☺.

Regards,
Raj Talati
www.rajtalati-abminvestment.blogspot.com

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.

Regards,
Raj Talati
www.rajtalati-abminvestment.blogspot.com

Don't gamble with Yellow sign of fuel Gauge

Investoshashtra !!!📜📜📜
ईनवेस्टोशास्त्र.!!!📜📜📜

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. (http://www.franklintempletonmutualfund.in/thegoodemi/ )

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

This weekend have fueltank full of happiness.

Regards,
Raj Talati

Which songs always remain in our playlist

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

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!!

Regards,
Raj Talati

"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. https://youtu.be/21j_OCNLuYg

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.

Regards,
Raj Talati
www.rajtalati-abminvestment.blogspot.com

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.

Regards,
Raj Talati
www.rajtalati-abminvestment.blogspot.com

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.

Regards,
Raj Talati
www.rajtalati-abmimvestment.blogspot.com

*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.

Regards,
Raj Talati
www.rajtalati-abmimvestment.blogspot.com

Swachh financial life Mission !!!

Investoshashtra!!!📜📜📜
ईन्वेस्टोशाष्त्र!!!📜📜📜

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.*

Regards,
Raj Talati
www.rajtalati-abminvestment.blogspot.com

"Goal are guesses"

Investoshashtra!!!📜📜📜
ईन्वेस्टोशाष्त्र!!!📜📜📜

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.

Regards,
Raj Talati
www.rajtalati-abminvestment.blogspot.com

Are Disclaimer's and warnings getting robotic ???

Investoshashtra!!!📜📜📜

ईन्वेस्टोशाष्त्र!!!📜📜📜

"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.