Welcome to life's Golden day

Investoshashtra!!!📜📜📜

ईन्वेस्टोशाष्त्र!!!📜📜📜

Today is one of the most happiest day of my life - yesssss it's RETIREMENT hip hip hurray...

Today is the day I waited for life...with lot of dreams and aspirations of doing a whole lot of things.

Today I don't have a fixed schedule or daily commute or any stress related to job or profession.

Today I can spend time with friends and loved ones, time for hobbies, travel and exploration, giving back to society, personal growth and a lot more.

But only worrying thought I have amidst all this celebration is, will my kitty be sufficient to live and pursue my and my spouse's dreams happily and comfortably, Will it last for my lifetime?

So,I can't plan it haphazardly which I might regret later with no time left for course correction..

I need to understand today all the variables which can affect my life.

Like a Rs.2 crore retirement kitty gets wiped out or will be zero by the time I will reach 82 assuming total monthly expense of Rs.70k (including medical, travel, festivals, kids and grand kids etc.) and my own inflation rate of 8% (Including lifestyle inflation) with 7% rate of return (post tax).

Why did it happen?? 

The only reason is while planning I forgot the biggest devil for my retirement life i.e. inflation and taxes...

I invested assuming that interest earned today on my corpus of 2 crore is much more than the present expense of 70k/month. So my corpus will keep growing and I can comfortably live on interest component.

The fact is even though in initial years interest earned on kitty is going to be much higher than monthly expenses. But slowly with passing years expenses will keep scaling higher, whereas interest income will remain stagnant or might reduce due to reduction in interest rate.

It will eventually result in eating up capital or need compromise on life style or/and living standard.

I need to ensure that my  retirement for which I was waiting for life, shouldn't convert into a curse due to rising medical cost, inflation,taxes and higher life expectancy.

It is very important while planning the retirement that I earn a return higher than my inflation (not what the government declares) and that too net of taxes so that capital can remain intact rather keep growing.

Retirement planning is not a one-time task but a lifelong process. 

So, let's discuss clear cut layout, plan it and ensure that my retirement remains a happy  vacation and not only today every day becomes a golden day of my life......

Regards,

Raj Talati

Good times don't last

Dear Investors, 

At ABM Investment we always believe in educating and updating clients by managing risk together with returns. Plese find below a note on what can we expect from markets :

*Good times don’t last*

To give hope, it is commonly said that bad times don’t last. But what is often unsaid is good times *too don’t last.*

Markets have had a phenomenal run. Our wealth is at all time high. Normally when past returns look too good, it is time for muted future returns. 

Markets, like life itself, is cyclical. *Neither bull nor bear market lasts forever.*

Prediction is a difficult business and I’m not capable enough or have any divine power to   predict. Having said that, I might not know when, I know for sure a deep correction would definitely follow. 

But when? 

May be next month, next year or next to it. 

The longer the bull run goes more deeper would be the correction. 

Their could be one of 2 scenario : 1) Time correction : it means muted returns for longer periods and 2) Value correction : A sudden fall from current level and then normal returns going forward.

Always remember markets cannot grow more than their earnings and those earnings cannot be unreasonably valued. There are some segments where earnings seems to be too much stretched. 

I can get market direction wrong. But I would always like to err on the side of caution.

I'm optimistic when it comes to growing wealth through Indian stock markets. There is no change in that. India will create immense wealth in the next 25 years, which we can't even imagine....But journey won't be in a straight line up but more of a upward sine wave.. 

I’m not recommending to sell or moving sideways as no one is talented enough to keep hopping in and out and making profits. 

But yes if you have any short term goals it's time to shift that money in debt.

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?

https://economictimes.indiatimes.com/mf/analysis/a-portfolio-turnover-ratio-of-2300-should-mutual-fund-investors-be-concerned/articleshow/98265052.cms

*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  ..

Read more at:
https://economictimes.indiatimes.com/mf/analysis/mutual-fund-advisors-ask-investors-to-invest-in-small-cap-funds/articleshow/99370897.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

 https://economictimes.indiatimes.com/mf/analysis/mutual-fund-advisors-ask-investors-to-invest-in-small-cap-funds/articleshow/99370897.cms?utm_source=newsletter&utm_medium=email&utm_campaign=Mutualfundnewsletter&type=mutualfund&ncode=f694d14c15808bbd61d6269d81c71150eebd96b423bd48a07b1d400d5f363fe61cb5fc97e9f7ce4a192b53c090908d27172fd2f53a0920880bb3dd886ce625b2586e0c6b653171069382eb7e5f7e3002

My Article published in Economic Times on 30/12/2022 "Year-End Special: Mutual fund categories investors should look out for in 2023"

 https://economictimes.indiatimes.com/mf/analysis/year-end-special-mutual-fund-categories-investors-should-look-out-for-in-2023/articleshow/96613128.cms

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.

Read more at:
https://economictimes.indiatimes.com//mf/analysis/passive-mutual-fund-aum-grow-by-22-in-6-months-on-new-themes-strategies/articleshow/93845478.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Views published in ET "ELSS funds offer lower returns, underperform benchmarks in one year. What should investors do?"

 Please find full article in below link :

ELSS funds offer lower returns, underperform benchmarks in one year. What should investors do?

Read more at:
https://economictimes.indiatimes.com/mf/analysis/elss-funds-offer-lower-returns-underperform-benchmarks-in-one-year-what-should-investors-do/articleshow/95267750.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

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

 https://economictimes.indiatimes.com/mf/analysis/why-are-mutual-fund-investors-in-love-with-new-fund-offers-nfos/articleshow/87325909.cms

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

Read more at:
https://economictimes.indiatimes.com/mf/analysis/46-passive-26-active-fund-nfos-collected-rs-52734-crore-in-2021/articleshow/88136473.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

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

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

Read more at:
https://economictimes.indiatimes.com/mf/analysis/should-you-invest-in-the-new-age-sector-funds/articleshow/90557388.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

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

1)  https://economictimes.indiatimes.com/mf/analysis/where-should-i-invest-equity-debt-or-hybrid-schemes/articleshow/90719509.cms

2) https://economictimes.indiatimes.com/mf/analysis/can-i-invest-in-kotak-balanced-advantage-fund/articleshow/90677858.cms

3) https://economictimes.indiatimes.com/mf/analysis/why-is-pgim-india-global-equity-opportunity-fund-underperforming/articleshow/90582051.cms

My Article on Franklin Templeton winding up of funds in ET

How Franklin fiasco happened and what we learnt from it

By Raj Talati, ET CONTRIBUTORSLast Updated: Apr 24, 2021, 11:38 PM IST

Share ..

Read more at:
https://economictimes.indiatimes.com/mf/analysis/how-franklin-fiasco-happened-and-what-we-learnt-from-it/articleshow/82210625.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

SECTIONS

How Franklin fiasco happened and what we learnt fr ..

Read more at:
https://economictimes.indiatimes.com/mf/analysis/how-franklin-fiasco-happened-and-what-we-learnt-from-it/articleshow/82210625.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

 https://economictimes.indiatimes.com/mf/analysis/how-franklin-fiasco-happened-and-what-we-learnt-from-it/articleshow/82210625.cms

My article on focused funds featured in April outlook money...

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"

https://m.economictimes.com/mf/analysis/is-it-a-must-to-have-gold-in-your-portfolio/articleshow/77277391.cms

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

FIFA (Foundation of Indian Financial Advisors) Annual event, Mumbai

Coverage of my presentation in Economic Times...

https://economictimes.indiatimes.com/mf/analysis/plan-for-your-life-with-whatever-you-have-try-to-increase-investments-with-time/articleshow/72835452.cms

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.

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