Hope you are not doing this- LONG TERM HOLDING- Reason for underperformance

Mr. Soni had invested in HDFC TOP 100 and also had a 1 year SIP for 2 years then. One fine morning in November,’20, he received letter from HDFC mutual fund, which gave him reminder that he had done this investment . He realized that he had invested Rs.3.4 Lac in total then and today it’s value is Rs.5 Lac. He called me up and asked me what to do, but one thing repeatedly he wanted me to say is whether he has earned good returns or was there better fund which could have given better returns

Mr.Kulkarni inherited Castrol shares from his father which were purchased @Rs.10 then. He had emotional bonding and for 5 years he was not selling those shares, rather he was saying, “badh raha hai and dividend bhi de rahah hai, then why to sell”. At the same time, in those years term, he bought another 3 shares and the returns what he got was much above holding value returns of Castrol, but he never used to compare and consider selling Castrol

GONE ARE THE DAYS of holding everything bought for long term

YES< Investments should be for long term, but same fund or company or asset should be minutely tracked and rebalancing should be done

Below is the example to understand better –

( Disclaimer : this is representational and does not necessarily mean actual )

Mr. Shah, started Investing just in March,’20 and his lump sum investment value was Rs.1 Lac. When he approached his financial planner, his planner, prepared strategy to invest in 50:12:38 ration for Equity: Debt: Gold , and they Invested accordingly. Mr.Shah and his planner were very clear that this 1 lac of investment they are investing for long term ( specifically for Mr.Shah more than 12 years )

In November start, the values had increased and Rs.1 Lac invested was then Rs.1.65 Lacs.

Generally 90% of Investors and 78% of Advisors understand long term means KEEP IT AS IT IS. But his planner did something which very few do. His planner re-balanced the whole portfolio to original set asset allocation and redeemed from Gold , and Equity ratio proportionately and re-invested to reset the whole investment to originally set 50:12:38 weightaes to the asset classes.

90% of investors do this, long term, means buy and hold, but the times have changed and active management is required.

Gone are the days when Dada purchased and Grand son reaps the benefit, and in between keep holding same funds, same shares, same asset class.

It’s time to change, if not , you are inviting underperformance

So Which one do you choose-

A_ Buy, Hold and ready for underperformance

C_ Buy and keep re balancing

D_ Sit on the sidelines- ie “ better hai invest hii mat karon as I do not understand anything”

What is your current way ?

Happy Investing, Keep growing

Happy to hear from you

DISCLAIMER : In no way this should be considered the ideal asset allocation , nor does it in any way to be considered or assumed that we are claiming that we can give "XYZ " returns. This is for simple understand of not making mistake of buy and keep holding and not reviewing or not rebalancing, just because of the normal NOMENCLATURE of LONGTERM. It needs re-think , on investment strategy and the advisor you are working with

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Time to Buy, Sell, Hold or Add in Equity markets ?

IS IT TIME TO BUY, SELL, HOLD or ADD?
Why are markets moving up, is it normalization is back ?
Now that #vaccine is arriving, are we out of the dooms day, and is that the reason that equity markets are going up?

Should I invest in Equity now, I feel I am missing the growth?

#liquidity is something which plays a major role and recently few global funds and investors have upgraded and increased India allocation.

For example, #MSCI Global Index has increased their allocation by 0.8%

Here is the #BIGPICTURE , in march,'20 FIIs took away about 60000 crs & in november,'20 they have again pumped in similar amount, which has resulted into markets going up ( For reference , attached daily and Monthly FIIs figure chart)

WHAT TO DO NOW?

Well, it all depends upon multiple factors and main important is
_If you are already invested, has it beaten your assumed returns substantially?
_Can you handle high volatility?
_How much are you OK for down side?
_How far or near is your next usage from this funds?
_What kind if asset class of fund you are holding?
_How is your financial plan originally made?

We have impacted asset allocation & re-balancing as on today for more than 90% of our clients

#FNquote #financialplanning #investing #personalfinance #mutualfunds #financialfreedom

Why not Equity Investing ?

https://www.linkedin.com/posts/vireshpatelfinancialnorth_financialawareness-equitymarket-personalfinance-activity-6734815215721988096-obZw

*Why investors do not prefer or prefer less investing in equity?*

Share this in your known group/s, *vote* and you will get the result

Also, comment your experience 🙏

Do vote yourself, if you have not done yet 🙏

Vaccine news & Equity Market

Isn't this vaccine news seeming like CNBC show in equity market ? 

#moderna says it's vaccine trials show 94.5% effectiveness in preventing

#coronavirus19 , 

while #pfizer last week reported 90% effectiveness

#astrazaneca says they must be ready with #vaccine by december end and

#seruminstituteofindia foinder asks if India has Rs.80000 crorers to buy vaccines 

moreover, @WorldHealthOrganisation chief says vaccines may not mean end of the #pamdemic 

At times the same Larsen & Tubro share one expert says buy, another expert says if you have.long term view and patience then buy, the third one says sell 

finally leaving the investor to herself/himself , no one actually knowing what is going to happen especially in short to medium term 

#FNquote #financialplanning #wfh #investing #personalfinance #financialfreedom

Equity Investors survey-Shocking result

https://www.linkedin.com/posts/vireshpatelfinancialnorth_sensex-nifty50-mutualfund-activity-6733339004596473856-9mLa

*This Equity Investors survey shocked us, and you will also realise why?*

What is Investing? - 20 seconds read

https://www.linkedin.com/posts/vireshpatelfinancialnorth_fnquote-financialplanning-wordsofwisdom-activity-6731777245377036288-k6Le

Words of Wisdom -

*What is Investing*

20 seconds read

IPL & Captains strategy

Hello IPL lovers
You are the team Captain and
It is 13th over of the IPL at the quarter finals and batting team needs 67 runs to win and has 5 wickets left, & best batsman is still playing

The captain at this juncture has either a medium fast bowler to give the ball to bowl 13th over or their best spinner with just 2 overs left of himself

With this situtation what should be the strategy ,If you were the captain you would apply?

Would you keep best spinner for the end or would you give it to spinner now and take risk at the end with the medium fast bowler ?

Would you go for wickets now or would you concentrate on containing runs?

Investing strategies are similar

Best Investment calls are taken after having an over view of opportunities, challenges, limitations, risks and more important what kind of person you are, like the one clear overview you have as a team captain above

So captains Kirtan A Shah , Hardik Vora Piyussh A Shah Sanket Prabhu , Ashish Singodia  Jesse J Saurav Agarwal  Divyashikha Gupta  CA. Anand Lunkar Dr.Vinita P. Kadam (P.T)  Bhavin Kothari CA Shrenik Shah , Nirmish Patel , Farzana Suri Victory Coach   would like to hear from you as well, your strategy

#FNquote #financialplanning #strategy #investing #personalfinance #financialfreedom #ipl2020

Core Principle & No Marketing

This stands as our way of working, following this principle at the core and not for marketing

#FNquote #financialplanning #financialfreedom #investing #personalfinance