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

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.

Regards,
Raj Talati

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.

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.