Saturday, February 24, 2018

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!!

Saturday, February 17, 2018

"Journey or Destination"

What is more important
"Journey or Destination"

Many a times in rush of reaching our destination we forget to enjoy journey....Joy in reaching destination is only when you relish journey as well.

Same way while Planning investments advisors and clients miss pleasure of journey.

*Don't forget In financial planning majority of time is spend in journey.*

In hurry of achieving goals or getting higher returns we miss to enjoy the moment. Make sure your journey is refreshing so that reaching destination delights you and doesn't strain you.

What is the sense of buying a Bullet at age of 55 with own funds which you wanted to buy at age of 25 with loan.

Having said that don't forget all of us *have to reach destination* but with pleasant memories of journey.

Happy journey!!!

Saturday, February 10, 2018



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.

Raj Talati