A Professional Financial Plan can Help You Change your Outlook towards Money!
To Know what is Financial Planning Click Here
Also Motivate others for it Click Here
Posted by VRIDHI on 24/01/2014
A Professional Financial Plan can Help You Change your Outlook towards Money!
To Know what is Financial Planning Click Here
Also Motivate others for it Click Here
Posted by VRIDHI on 15/07/2013
Posted by VRIDHI on 09/03/2014
Traditionally our money management matters have been handled by 3 sets of people, besides ourselves
Deepali Sen, Mint 21/2/2014
All Indians are doctors just as all of us are financial planners. Well, one can safely replace “all” with “nearly all”. We improvise on generic medication when our family members are hit by minor medical ailments. Similarly, we assume that money management is mostly about choosing investment products, which, in turn, is all about tracking past performance of these products; something that can be easily done. It is common to see people following financial advice originally meant for their friends (which could have been given by an investment adviser), not halting to ponder that this advice could be pertinent to their friend but may be altogether inappropriate for oneself.
My experience suggests that while most of us set aside a decent portion from our income as savings, we put most of our money in risk-averse products. We are good savers, but not good investors. The good news is that we follow this Hindi quote in spirit, chaadar ke bahar pair nahin nikalna chahiye (stay within your means); the bad news is that we think that containing risk is the best way to grow our money. Our fixation with guaranteed returns is high, owing to which we end up earning sub-standard returns on our investments. Inflation robs more from us than our investments earn for us. The balance between risk and return is sorely lacking. It gets tough to understand that risk and returns are two sides of the same coin. At times, the biggest risk we take is the risk of sub-optimal returns.
Our financial planning matters have mostly revolved around keeping aside surplus money in a “fictitious box”. Money from this box gets used for various needs and goals as and when they come knocking at our doors. This box could contain fixed deposits (FDs), illiquid and low-return fetching insurance policies, some long-term bonds, investments in Public Provident Fund and Post Office Monthly Income Scheme, and some stocks that were considered bluechip at the time of purchase. Other than these financial assets, we would have also bought physical gold and land or residential property.
Traditionally our money management matters have been handled by three sets of people, besides ourselves. The first being the insurance agent, who is more often than not our dad’s friend or a friend’s acquaintance, followed by an investment adviser, who either works independently or is associated with a bank, and the third character is the loan processing officer.
We are obviously the most involved as we have the complete know-how of the dynamics of our cash flows, our goals and our behavioural relationship with money. However, we aren’t organized enough to have our needs listed down, quantified, prioritized and effectively matched with the respective source of funds. We are the hub to which these spokes attach.
The first person, the insurance agent suggests child plans for our kid’s education, annuity plans for our retirement, money back policies for our various goals, or maybe a unit-linked plan to capture the incumbent growth in the equity markets. These products are suggested with an eye on the concessions available under various sections of the Income-tax Act and the fact that we could be getting some chunk of money after a block of certain years. Usually we end up paying hefty premiums for illiquid and low-return products. And, with the sum assured being low, we stay under-insured.
The second character, the investment adviser, concerns herself with allocating surplus funds in various products such as stocks, mutual funds (mostly equity-oriented), bonds and FDs. If two clients approach her for planning two very different goals such as kid’s higher education five years down the road and purchase of a bigger car a year later, she is likely to suggest similar products to both of them. She is driven more by the current contest or campaign running within the firm than by the end use of the investments thus made. Also, since she does not have complete information regarding a client’s assets, liabilities, cash flows, and goals and responsibilities, her advice is blinkered and limited to her piece of mosaic without drawing a holistic picture.
The third player is the loan processing agent. She processes our income documents to let us know our maximum loan eligibility amount and more often than not we end up taking the full loan amount as per the approval. We do not stop to do an analysis on whether we are earning (on our investments) more than what we are paying as interest (on home loan). This objective assessment aside, we are keen on retaining the status quo on our investments as it is convenient to us.
The flaw with this disjointed kind of financial planning lies in the fact that these three outside characters do not meaningfully interact with each other, because of which planning is piecemeal, superficial and ends up creating pockets of inefficiencies. For example, a client of mine had an outstanding home loan of Rs.50 lakh at an interest rate of 13%, and he also had Rs.15 lakh invested in FDs of one-year tenor earning an interest of 8.5% per annum. In effect, he was paying 13% and earning 8.5% per annum, a net depletion every year.
Our life is to a large extent what we make it out to be. So let’s resolve to organize our financial lives. I firmly believe in this quote by American evangelist Billy Graham, “If a person gets his attitude towards money straight, it will help straighten out almost every other area in his life.”
best investment options in Chennai India, best investment plan Chennai India, best place to invest in Chennai india, top best investment plans Chennai india, good investment Chennai india, best way to invest money in Chennai india, Corporate Presentation on Financial Planning, TAX Saving Chennai India, Financial Planning in Chennai India, Top Best Certified Financial Planners in Chennai India,Top Best Certified Investment Advisors in Chennai India, Top Best Stock Market Consultants in Chennai India, Top Best Wealth Portfolio Managers in Chennai India,Seminars on Financial Planning Investments, Money Advisors in Chennai, Money Advisors in India,Financial Planners in India, Financial Planning Companies in Chennai India,Mutual Fund Advisor in Chennai, Mutual Fund Advisors in India, Money Adviser in India
Posted by VRIDHI on 02/03/2014
Financial Express, 28/2/14
After preliminary analysis of documents the agency came to know of the enormity of the scam.
CBI today claimed the documents recovered by it during searches at the premises of Delhi-based business groups PACL and PGF show they allegedly used ponzi scheme to cheat nearly five crore investors of Rs 45,000 rpt Rs 45,000 crore.
In its case against PACL and PGF, CBI has named PGF Director Nirmal Singh Bhangoo and PACL Director Sukhdev Singh besides six other directors of the companies.
The groups had allegedly raised investments from over five crore gullible investors through collective investment scheme under the garb of sale and development of agricultural land, CBI spokesperson said here today.
She said that after preliminary analysis of documents the agency came to know of the enormity of the scam.
In Ponzi schemes, returns are given to investors from the money collected from other depositors in a pyramid-like structure.
"Initial investigation by CBI has revealed an alleged scam to the tune of Rs 45,000 crores in a case relating to an alleged fraud by Delhi-based private company and others through raising investments…through collective investment scheme under the garb of sale and development of agricultural land," CBI said.
PACL and PGF did not respond to emails sent seeking their comments.
The sources said CBI at first did not realise the gravity of the scam and it was only when some laptops were opened they came to know that their earlier estimates about the size of the scam were just a tip of the iceberg.
CBI sources said the agency had carried out an inquiry, on the orders of the Supreme Court, into allegations that the companies had collected crores of rupees through deposits from public at large through their ponzi scheme promising land.
CBI sources said that during the searches it has recovered documents which show benami properties worth crore in India and abroad. The investments made by the company in a hotel in Gold Coast, Australia, have also come under the scanner of CBI.
The spokesperson said CBI has found prima-facie evidence which shows that PGF, having an office in Pashchim Vihar in West Delhi, has raised investments by issuing bogus land allotment letters to induce the investors.
"It was revealed that PGF, on being directed by the High Court of Punjab and Haryana to wind up the scheme and refund the money to the investors, a similar fraudulent scheme was operated under the name of PACL with office at Barakhamba Road," CBI alleged.
It is alleged that funds collected from new investors of PACL were used to repay the earlier investors of PGF to stave off criminal prosecution.
The agency has carried out searches at the offices of PGF and PACL at their offices in New Delhi, Chandigarh, Mohali, Ropar and Jaipur.
CBI sources said the accused persons have been called to appear for questioning even as a preliminary round of interrogation has been done by the sleuths.
"Funds have been raised by the two companies through a vast network of lakhs of commission agents spread all over the country who were being paid hefty commissions for luring the investors," the spokesperson said.
The searches were conducted at the premises of Directors Harcharan Singh, Chandra Bhushan Dhillon, Prem Chand, Gurmeet Singh, Subrato Bhattacharya among others.
Ponzi Schemes, Ponzi Scam, Real Estate Prices, Top Best Stock Market Consultants in Chennai India, Top Best Wealth Portfolio Managers in Chennai India,Seminars on Financial Planning Investments, Money Advisors in Chennai, Money Advisors in India,Financial Planners in India, Financial Planning Companies in Chennai India,Mutual Fund Advisor in Chennai, Mutual Fund Advisors in India, Money Adviser in India
Posted by VRIDHI on 28/02/2014
The veteran investor’s advice to his company’s shareholders remains the same—buy and hold
Rajesh Kumar, Mint 28/2/2014
The annual letter to the shareholders by Warren Buffett, one of the most successful investors of all time, is an eagerly awaited event in the world of investing. Every word from this “Sage of Omaha” is followed by investors across the world. This time was no different. An excerpt of his annual letter was published by the Fortune magazine on its website on 24 February and is being discussed all over the world.
Warren Buffett, according to the Forbes, had a net worth of $58.5 billion as on September 2013. Buffett is chairman and chief executive officer of Berkshire Hathaway Inc. The company and its subsidiaries are in diverse businesses including insurance and re-insurance, finance and manufacturing.
The published excerpt is basically an essay on fundamentals of investing, which can be followed by all investors to maximize gains in the long term. The basic essence of the essay is that it does not require a great deal of expertise to be a successful investor. However, it does require a great amount of patience and the ability to ride through business cycles. Buffett this time illustrated examples of his two real estate deals to drive home the point that one needs to identify a good investment idea and then hold on to it for the long term to reap gains.
Here are five key takeaways from his essay that investors can use while putting in their money.
Keep it simple
In order to get reasonably good returns, you don’t need to be an expert in the asset class that you are investing in. In order to explain this, Buffett uses the example of a farm that he bought in 1986. He had very little idea about farm operations. But with the help from his son, he did a quick calculation on how much the farm will yield and what will be the operating cost. Around 28 years down the line, the output of the farm has gone up three times and its value has gone up five times. The basic argument is that you need to “keep things simple and don’t swing for the fences”.
Focus on productivity
Buffett argues that you need to understand the future earning potential of the asset that you are buying. If you are not able to do that, just move on. The idea here is that you must understand the business or the asset that you are buying. Buffet and his partner, Charlie Munger, evaluate businesses in the same way irrespective of whether they are buying a small stake in the business or the entire company.
Avoid predicting price changes
Thinking about price changes is speculation. Also, Buffett argues that something that has appreciated in the recent past should not be your reason for buying. People tend to buy when prices have run up quite a bit and sell when it has already fallen. Investors, in fact, should be doing exactly the opposite. “A climate of fear is your friend when investing; a euphoric world is your enemy,” Buffett wrote.
Avoid constantly tracking stock prices
Buffett’s style of investing is that once you have bought an asset, you should not be worried about its price every day. This is what normally happens in real estate investments. People don’t go out to buy and sell every day. However in the stock market, since prices are available on a real-time basis, there is temptation among investors to do something which should be avoided. Says Buffet: “If you can enjoy Saturdays and Sundays without looking at stock prices, give it a try on weekdays.”
Don’t waste time on macroeconomic and market predictions
Listening to market predictions and macroeconomic opinions, according to Buffett, is of no use in investing. The message is that once you have bought a good asset, you should hold it for the long term. There will be economic and business cycles in between but a good asset, bought at a reasonable valuation, will give you good returns in the long run.
Buffet further says that if you are a non-professional and cannot pick stocks, you still have an option of investing in stocks. All you need is a diversified portfolio of good businesses which you can easily own through index funds. “The goal of the non-professional should not be to pick winners—neither he nor his “helpers” can do that—but should rather be to own a cross-section of businesses that in aggregate are bound to do well,” he argues.
Most of the things that Buffett talked about in his essay are not new for people who follow the principles of value investing. Says Raamdeo Agrawal, joint managing director, Motilal Oswal Financial Services Ltd, “It is the reiteration of what he has said before, which is basically buy and hold works.”
Experts argue that investors should buy good companies and hold it for the long term. In case you find it difficult to identify stocks, you can simply invest through an index fund which is also cost effective in terms of management fee. The idea is to own businesses which will do well and create wealth over time.
Also visit: www.VRIDHItraining.com
best investment options in Chennai India, best investment plan Chennai India, best place to invest in Chennai india, top best investment plans Chennai india, good investment Chennai india, best way to invest money in Chennai india, Corporate Presentation on Financial Planning, TAX Saving Chennai India, Financial Planning in Chennai India, Top Best Certified Financial Planners in Chennai India,Top Best Certified Investment Advisors in Chennai India, Top Best Stock Market Consultants in Chennai India, Top Best Wealth Portfolio Managers in Chennai India,Seminars on Financial Planning Investments, Money Advisors in Chennai, Money Advisors in India, Financial Planners in India, Financial Planning Companies in Chennai India,Mutual Fund Advisor in Chennai, Mutual Fund Advisors in India, Money Adviser in India
Posted by VRIDHI on 14/02/2014
by Vivek Karwa, CPFA., CFPCM
140213: The year 2014 has started with substantial amount of volatility. The market which was going strong till the end of 2013 saw a good correction as we began 2014. We saw the rally coming in post the results of the four assembly state elections, the mood turned positive since the results were in line with the projections and the market expects a similar show during the 2014 lok sabha elections. The market is betting for a change and if the change comes in with strong numbers, the market will be inclined to perform better.
The resent sell off has come on account of US federal reserve reducing its bond purchases program and hence leading to lesser infusion of funds into the US economy, popularly known as the FED Tapering Program. There are both positive and negative aspects to it.
The negative reasons which the market participants are giving is that, since the infusion of money will reduce the spending abilities, the economy may not recover at the same pace as the spenders will become cautious. This will lead to consolidation to negative growth and hence market are reflecting the same.
We feel there are more positives to the move. The biggest positive being that FED is now finally confident that US economy is recovering. The FII’s have been selling continuously in emerging markets like India since they would prefer investing in safer “recovering” economies like the US than to take risks at other paces.
The reason is also due to the reasons of our own internal issues. The government is just not able to take decisions on any important matters, leave alone the important matters, there are no decisions on any small matters either. Everybody is involved in some kind of shadow boxing and there is no one to control such feuds.
To make the matters worse for the corporate India and the foreign direct investors, the continuous harassment by the income tax department due to unclear rules is creating all the havoc. It is unethical on the art of the government to change rules as per the tax amounts they want to collect. Who will come and invest in the country when you know that they may modify the rules to snatch away more money from you in order to bridge the fiscal deficit gap they have created, due to their own mis-managements.
Anyways, these things may become a history soon. If we get government as per the common perception of people and as per the projections made by government, the markets may be headed for a major rally. Stocks from the Banking, Infrastructure and capital goods have suffered the most in the current regime.
A strong change at the centre may give a booster injection to the stock prices across the board. Our immediate target of 22000-22500 on Sensex still remains a doable figure. May be by May-June’2014.
Disclosure:- It is safe to assume that the author may have interest in the sectors recommended in this news letter. Seeking personal advice from your Financial Advisor is recommended before acting on any of the substance given herein. The numbers, figures, etc., presented may have been taken from various sources.
Corporate Presentation on Financial Planning, TAX Saving Chennai India, Financial Planning in Chennai India, Top Best Certified Financial Planners in Chennai India,Top Best Certified Investment Advisors in Chennai India, Top Best Stock Market Consultants in Chennai India, Top Best Wealth Portfolio Managers in Chennai India,Seminars on Financial Planning Investments, Money Advisors in Chennai, Money Advisors in India, Financial Planners in India, Financial Planning Companies in Chennai India,Mutual Fund Advisor in Chennai, Mutual Fund Advisors in India, Money Adviser in India
Posted by VRIDHI on 06/02/2014
When you are not sure about something you will require an Advice. If good advice is like a boon then bad advice is nothing less than a curse. This way it becomes very crucial in life to give and take right kind of advises.
In my nation the inflation is on rise, but this one thing is still offered for free. Every mouth has an opinion irrespective of the know-how required. It’s really funny to observe people taking it so lightly.
Simply, the advice that fetches you profit in reality (real profit not imaginary) is good, otherwise it’s useless or might be disastrous.
In this post I have tried to explore the basic difference between a good advice and a bad one. Have a look …
These points might help:
The one thing that you must never forget is that at the end, responsibility will be yours. The incurred profit or loss will affect you, only you, or your loved ones.
If you fail the whole responsibility will be yours. None will come and say “It was my mistake as I gave you a wrong advice”. Even if they confess the situation is unlikely to change.
The simple rule of thumb is to never provide an advice outside your area of expertise. In case, you find it difficult to suppress your urge to speak then mention it clearly that the idea stated is simply your point of view.
When you really desire to help someone better do it the right way. If you cannot make it it right don’t turn it to bad.
The conclusion is that you will come across numerous suggestions and a lot of mouths. Every time you will have to determine the legitimacy of every individual idea being presented to you. There is no single line definition or some devise to differentiate between a good advice and a bad advice. All you need is to take care and act right.
A Few Chanakya Neeti Quotes about speaking :
An advice is just an idea. It is you who will have to think about the outcome and act accordingly.
Source: Fwd Email