Viresh Patel
Fee Only Financial Planner Guiding Money towards Life
Thursday, June 01, 2023
Which of the Money Management group you belong out of 3?
Understand this No.1 thing - Key to understand growth in your Financial Life Journey
Earlier an investor understands this better it is in your financial life journey.
What say ?
anything to add ?
Kirtan A Shah
Ashish Singodia
CA Sweety Chaudhary
Avigyan Mitra
Shrey Jain
Priya Krishnamoorthy
Pravin Shetty
Mitul Khemka
Madhur Gundecha CA, CFA
#riskmanagement #financialliteracy #financialfreedom #financialplanning #financialplanner #investingforbeginners #investing #personalfinance #mutualfund #couplegoals
Wednesday, May 31, 2023
Your contribution/s to retirement corpus may be at stake - Vote responsibly NPS vs OPS
NPS vs OPS may create a problem not only for regulators, but for investors of the same and somehow whatever decision some day it reaches will impact investors retirement corpus.
Currently #PFRDA (nps regulator) and certain state governments (ones which declared Old Pension Scheme (popularly called OPS) as their choice to offer their state role employees under retirement plan and / or fund) are at loggerheads.
State governments which declared OPS to offer their state employees are claiming money back from pfrda and pfrda has declined.
This may reach the Supreme court and Ministry of finance and all retirement fund contributors retirement money is at stake.
Why vote and ask your MP or MLA or MLC questions is important, before deciding whom to choose, is everyones responsibility. (and not someone else's or they)
PFRDA DECLINED money to state government for OPS
#retirementplanning #voters #financialfreedom #financialliteracy #wellness #retirement #supremecourt #corpus #mutualfund #epfo #epf #investing #investingforbeginners #personalfinance #couplegoals #money
Monday, May 29, 2023
Client Conversation - Types of market corrections
Client - I don't understand why you reduced my equity holding @18000 on 12th October, 21 and now you recommend buying around the same @18000 since January, 23 ? Why so?
Myself- Let me explain -
Typically all of us are aware of Market corrections in 'number terms'.
So say in 2020, Nifty fell by 30% is a correction or crash and we all understand this. (as shown in pic.-crash)
What most find it difficult to identify and understand is 'time correction'.
So market has 2 types of corrections -
1- Number corrections
2- Time corrections
Since the majority of us understand 1st - ' Number correction ', I will jump to help you understand the 2nd point - ' time correction ' in simple terms.
Let us take this same headline sample as an example for dates and numbers.
September to December, 21 Nifty 50 index was around 18000 and even today -May, 23 around the same level.
So you may say this is not correction, right in number terms (18000) we are at the same level, but the same level since 1 and half years.
Client - How then, does it mean a correction?
September, 21 Nifty PE (price to earning ratio) was around 27 and currently it is 21.
The run up from April, 2020 to September 21 was so sharp that it was way above it's valuations -had reached PE of 34+ and so either it had to number correct which means fall down, or time correct which it has done (I am no where saying now markets will go up and up only)
This time correction is also called ' consolidation' and in this type it generally remains in a range. (as shown in pic.'
Now the most important question-
Client - So how does this call to reduce in October, 21 and move in since Jan 23 helps?
Myself - We are not GOD to time the market, but If we had remain invested, most likely earned nothing (largecap most likely), rather we reduced equity allocation in October, 21 parked the same in medium term, Long term and some in liquid funds (earning around 7.7%) and since january, 23 moving back slowly to equity.
Most important is during the Nifty downward movements there was absolutely peace of mind and the money was growing safely.
Client - Good you were able to time the market - so why are we now entering slowly, why can't you tell me to enter when the time is right? You are experts in identifying and timing ?
Myself - SURELY NOT, but with 17+ years experience there are higher chances we may be able to safeguard and grow your money rightly with full financial literacy based clarity and aware decisions.
At least this client was convinced fully now aware of types of correction and also about risk averse way of investing, with clarity.
#experience #financialfreedom #financialplanning #financialplanner #mutualfund #investing #investingforbeginners #personalfinance #couplegoals #mutualfunds #linkedin #comment
Our aim is to Spread financial literacy amongst common investors.
Thursday, April 27, 2023
You change your advisor or advisory platform?- This could be the reason
You change your advisor or advisory platform?- This could be the reason
Half hearted approach never help fulfill.
1-What is your age?
2-What is your Income range?
3-How many dependents do you have?
4-What is the up and down range you are OK with, in your investments?
5-Is this investment for long term? or, How many years is your holding period with this investment?
Do many risk profiles are judged this way and most advisors and/or advisory platforms have similar kind 3-7 questions to understand investors 'risk profile', which is half hartead and will most likely do more harm then good.
Test if I am right or wrong?
if you are more than 5 year investor, check this and your responses will define if I am right?
1- Have you ever withdrawn investments for some emergency?
2- Have you redeemed investments for life needs?
3- After investing did you find yourself disturbed and you kept checking your investments regularly, or even lost sleep someday?
4- Because of this, have you changed or considering to change your advisor or advisory platform?
If your response to even one is YES, then risk profiler questions or reports are not working and it is because it is not capturing reality and is made half hearted to just take investments.
#investing #investment #financialplanning #financialfreedom #financialliteracy #financialplanner #financialadvisor #mutualfund #bestfinancialplanner #mutualfunds #mutualfundssahihai #personalfinance #comment #linkedin #investments #riskmanagement #risktolerance #riskprofile #riskassessment
Tuesday, April 11, 2023
Viresh you think too seriously and too much on Data Privacy and leakages
People who know me say, you are over protective and think too much on data, too seriously.
What if I say, I read internal reports and so act and make people aware and try and protect them and their private and confidential data?
I had written about this earlier in one of the posts and no one liked.
Few who saw the post did ask me 'why do you write on data privacy and confidentiality, and even at times technology leakages', when you are practice financial planning?
Well, I apply my expertise after collecting data, which for me is very personalized and important in my life, as it is important in my client family's life.
I will keep writing and talking about this.
#dataprivacy #data #financialfreedom #itandsoftware #informationtechnology #financialliteracy #financialplanning #financialplanner #financialadvisor #investing #linkedin #comment #persinalfinance #couplegoals
What has Nature got to do with the stock market or equity share prices? example
What has Nature got to do with the stock market or equity share prices? example
Well, let me explain.
Any market is based on 2 basic aspects-
1- Human behavior
2- Liquidity
Let us take this practical latest report as example.
As per latest report, it is expected that this year there are only 25% chances of normal rain, 20% chances of drought and 40% chances of just about less than normal rain (comfortable).
When there is no or less rain or for that matter not well spread rain, the crop expected does not come and because of this the prices of food items rise.
Food is one major component in inflation counting and if food prices rise inflation will rise.
RBI Governer and MPC members know this and hence they are pressing on a statement saying this pause decision is for this meeting and that we are closely watching the situation with accomodative stance. (apart from other events)
If inflation rises, there will be 2 major impact -
1- people will have to pay more for the same food items, hence less liquidity or cash in hand and so demand for necessity will rise and avoidable expenses will be kept aside - like luxury purchases, etc., so slowdown in economy and demand.
2- RBI will have to balance the M3 i.e. liquidity position in the hands of consumers and also may even have to raise interest rate (so pause may stay longer or until May end MET report at least) (of course apart from other factors like US data, geopolilitical situations, war situation and other aspects).
If rain is below normal or as expected 20% drought, and if RBI increases rates
1- FD and new bond issuances come at higher interest rates (possibly good for safe investors, but not good for loan seekers and people who are already paying EMIs as their rates will also increase, again cash flow and less purchasing power)
2- This will negatively impact equity markets, as with cost rising (raw material cost and cost of loans-both), profitability and sales (because of less purchasing power of consumer) and so profitability will be negatively impacted.
There are multiple other aspects, but this is how Nature impacts markets - in this example negatively, but think reverese and the impact in that case turns positive.
This helps?
agree?
#linkedin #comment #financialliteracy #wellness #wellbeing #financialwellness #financialwellbeing #financialfreedom #personalfinance #macro #rbi # #interestrates #equity #debtmutualfunds #mutualfund #investing #personalfinance
image credit - can stock