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

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

Which Investor category you belong to..

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

According to a Chinese proverb there are 4 categories of people :

1)He who *knows*, and *knows* he knows, he is *a wise man*

2)He who *knows*, and *knows not* he knows, he is *asleep*

3)He who *knows not*, and *knows* he doesn't know, he is *a child*

4)He who *knows not*, and *knows not* that he doesn't know, he is *a fool*

The problem is percentage of people doubles as you move up the hierarchy and  more than 80% fall in final 2 categories.

In financial world, most of the time initial investment success makes investor's overconfident and tends to believe that they belong to category 1😊😊. But by the time they realize that actually they belonged to category 4, it's too late.😪😪

Frankly most of so called _*"Experts"*_ also don't fall in category 1 as it requires regular upscaling of knowledge and skills to maintain that spot.

Investors in category 2 or 3 are at lesser risk, as good professional advisor can help and ensure that their financial goals are met.

Irony is majority of investors fall in category 4 and they are ignorant about it. I pray to God to watchover and protect them.

Have a wonderful weekend...

Brake or Accelerator

India might be the only country where people accelerate instead of applying brake when signal starts turning to red from green.

We all know importance of brake as well as accelerator for smooth commuting.

*Accelerator keeps us moving whereas brake ensures we reach our destination safely....*

A good driver knows very well when to push accelerator and when to apply brakes.

Many a times investors while investing forget this simple concept and enjoys acceleration so much that forget applying brakes, inspite of reaching destination (Goals)  which eventually results in accident (losses).

Financial planning helps you in deciding when is the time to accelerate and when to slow down or even stand still.

If you are still just investing it's high time *switch to financial planning.*

Seat belt pehni Kya!!

Seat belt pehni Kya!!

As soon as we settle down in a flight Airhostess starts safety demonstration. Does that mean flight is going to crash.

Does wearing a seat belt or helmet assures that we won't have injuries in case  of accident.

No but certainly it will help to avoid severe injuries.

Financial planners are actually seat belt or life jacket for the clients, who ensures that during a accident(sudden change in behavior of asset classes) your goals Don't have severe injuries.

They would ensure that your goal funding is safe in Black box which gets unaffected even if flight crashes.

The most important part of financial planning process is selection of a competent financial planner.

Concentrate on average not maximum

We always plan our road trip timings considering average speed.

There would be a stretch on which we may accelerate at 130-150 kmph and undoubtedly a roughy or crowded patch where we won't be able to exceed even 20-30 kmph, Unless driving on a formula 1 track.

So during our journey we will be moving somewhere in between the lower and upper band. Does that mean we should try and accelerate even on roughy patch at a speed of 100. Obviously NO

Then why we want to drive our investments either in top or first gear only. It is dangerous for our future to drive throughout financial journey only in extreme gears.

Why is it that if we are investing in Equities we try to chase best performing stock or mutual fund and keep playing with our money in shifting from  one to other. Remember data only shows past performance and *past performance is not guarantee of future.*

So this weekend decide average speed required to achieve your financial goals which will help you to avoid unnecessary diversions. It will minimise risk and make you reach destination safely in time.

Happy weekend!!

SPEED or DIRECTION !!

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

Dear friends ,

There is a big correlation in traveling and financial planning. I will use this analogy in Investoshashtra broadcast for next few weeks.

*SPEED or DIRECTION* - What is more important??

Whenever I ask this question during my presentations, majority of audience reply speed.

Actually, right *direction* is more important to reach our destination.

Even if we drive with full throttle, one wrong turn and will end up nowhere.

In financial planning most of the time investors concentrate on returns (speed) instead of where they want to reach-Goal(direction).

This weekend decide your direction right, speed could be managed afterwards to reach destination.

Have a rocking weekend.

Regards,
Raj Talati

My Times of India Article 23/9/14 on "Goals and Risk Tolerance"

"First Figure out your Goals, Risk Tolerance"