The document provides advice on mutual fund investing from The Financial Literates website. It discusses choosing the right mutual funds by properly diversifying across market caps, fund houses, and types of funds. It emphasizes the importance of matching funds' stated objectives and risks to the investor's goals and risk tolerance. Past performance is not indicative of future returns, and funds should be evaluated based on long-term performance across market cycles.
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Goldmine Media's professional financial adviser factsheets will enable your business to extend client communication, raise brand awareness, improve marketing efficiency, enhance client retention and increase sales.
Generate further repeat business opportunities
This service has been designed to generate further repeat business opportunities and referrals from your clients. Besides educating and informing clients, you're also achieving greater brand and name recognition, which is a very beneficial way to build lasting relationships.
Nurture relationships as part of your ongoing service proposition
In a post-RDR environment, there has never been a more important time to communicate with your clients on a regular basis, and each factsheet will ensure that you're able to nurture relationships as part of your ongoing client service proposition.
Each factsheet used as part of a direct mail campaign provides an unrivalled way of maintaining client contact and providing information that your clients know to be impartial, relevant and timely.
Regardless of how much money one has, it seems that everyone wants even greater wealth. One way to accomplish this is through investment strategies to grow your assets.
Mutual Funds (MF) are a great way to invest.The current scene,however, might not be very easy on the MF industry yet for long term investment these are an ideal option. Before investing any one would want to know how mutual funds work. Now, if you ask this from a finance professional, mostly, you’ll get answers that raise even more doubts because the clarifications are full of financial jargon In simple words, you will be more confused than before.Investors who have little clue about mutual fund will always tell you that they are full of risk and will discourage you from investing. However, having said that, I do feel that before plugging in your money you need to watch out for a few points.
The Importance of proper Financial Planning. Navigating the financial world is a minefield, make sure you know what steps you need to take to ensure you don't lose money.
the choice of financial professionals
Print
Digital
Websites
Creative
Marketing
Personalised Client Marketing Factsheets
You may also be interested in
Financial adviser newsletters
Financial adviser client magazines
Personalised marketing factsheets
Financial adviser Corporate brochures
Personalised 2014/15 Tax Data card
Bespoke publishing services
Financial adviser client marketing factsheets
Goldmine Media's professional financial adviser factsheets will enable your business to extend client communication, raise brand awareness, improve marketing efficiency, enhance client retention and increase sales.
Generate further repeat business opportunities
This service has been designed to generate further repeat business opportunities and referrals from your clients. Besides educating and informing clients, you're also achieving greater brand and name recognition, which is a very beneficial way to build lasting relationships.
Nurture relationships as part of your ongoing service proposition
In a post-RDR environment, there has never been a more important time to communicate with your clients on a regular basis, and each factsheet will ensure that you're able to nurture relationships as part of your ongoing client service proposition.
Each factsheet used as part of a direct mail campaign provides an unrivalled way of maintaining client contact and providing information that your clients know to be impartial, relevant and timely.
Regardless of how much money one has, it seems that everyone wants even greater wealth. One way to accomplish this is through investment strategies to grow your assets.
Mutual Funds (MF) are a great way to invest.The current scene,however, might not be very easy on the MF industry yet for long term investment these are an ideal option. Before investing any one would want to know how mutual funds work. Now, if you ask this from a finance professional, mostly, you’ll get answers that raise even more doubts because the clarifications are full of financial jargon In simple words, you will be more confused than before.Investors who have little clue about mutual fund will always tell you that they are full of risk and will discourage you from investing. However, having said that, I do feel that before plugging in your money you need to watch out for a few points.
The Importance of proper Financial Planning. Navigating the financial world is a minefield, make sure you know what steps you need to take to ensure you don't lose money.
the choice of financial professionals
Print
Digital
Websites
Creative
Marketing
Personalised Client Marketing Factsheets
You may also be interested in
Financial adviser newsletters
Financial adviser client magazines
Personalised marketing factsheets
Financial adviser Corporate brochures
Personalised 2014/15 Tax Data card
Bespoke publishing services
Financial adviser client marketing factsheets
Goldmine Media's professional financial adviser factsheets will enable your business to extend client communication, raise brand awareness, improve marketing efficiency, enhance client retention and increase sales.
Generate further repeat business opportunities
This service has been designed to generate further repeat business opportunities and referrals from your clients. Besides educating and informing clients, you're also achieving greater brand and name recognition, which is a very beneficial way to build lasting relationships.
Nurture relationships as part of your ongoing service proposition
In a post-RDR environment, there has never been a more important time to communicate with your clients on a regular basis, and each factsheet will ensure that you're able to nurture relationships as part of your ongoing client service proposition.
Each factsheet used as part of a direct mail campaign provides an unrivalled way of maintaining client contact and providing information that your clients know to be impartial, relevant and timely.
A monthly Newsletter to manage your personal finance & aim to give a detailed outlook about Mutual funds, other investment options, and Market via INVESTMENT MANTRA.
I'm looking for 2 people that want to change their current situation.
See how $18, one time, can change your situation in one year. There is strength in numbers. Teamwork makes the dream work. Take a look here >>> http://tinyurl.com/kb7luuf
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Women can't afford to avoid investing, but they don't have to do it alone either. Do your due dilligence on selecting a financial advisor who actually has additional credentials beyond just being licensed to sell you an investment. Ask the advisor how long they have been in the business, and what have they done to become a better advisor since they started. Just because someone has been in the business 15 years, doesn't mean they haven't simply repeated the first year 14 other times!
Year Book by Infinity Finserv Pvt Ltd ( Yr 2020)aditya72
The year 2020 has brought in a major health crisis in terms of COVID-19. This crisis has taught us many lessons - lessons to manage our emotions, lessons to think positive and lessons to manage our investments. Our E book will teach you many tips and tricks to help you manage your finances properly
AES International is a multi-award winning international wealth management and employee benefits organisation.
Find out why you should join our movement: https://www.aesinternational.com/
Savings and Investing are the foundations of a strong financial future for every individual. You can place a good foundation effectively with the Financial Planning exercise. But many of us find it difficult to put this into practice and are therefore faced with numerous difficulties in achieving financial goals. Most of us find it hard to understand the variety of financial products available in the market. Thus are unable to take informed decisions. This results in delaying or putting of the financial decision which can lead to unfulfilled goals and hurdles.
This presentation helps in understanding the basics of Financial Planning.
If you are beginning your investment journey (or if you want to rethink with a structured approach), there’s no better place to start! This document outlines a structured approach to investing that we wish we had when we started to invest.
the choice of financial professionals
Print
Digital
Websites
Creative
Marketing
Personalised Client Marketing Factsheets
You may also be interested in
Financial adviser newsletters
Financial adviser client magazines
Personalised marketing factsheets
Financial adviser Corporate brochures
Personalised 2014/15 Tax Data card
Bespoke publishing services
Financial adviser client marketing factsheets
Goldmine Media's professional financial adviser factsheets will enable your business to extend client communication, raise brand awareness, improve marketing efficiency, enhance client retention and increase sales.
Generate further repeat business opportunities
This service has been designed to generate further repeat business opportunities and referrals from your clients. Besides educating and informing clients, you're also achieving greater brand and name recognition, which is a very beneficial way to build lasting relationships.
Nurture relationships as part of your ongoing service proposition
In a post-RDR environment, there has never been a more important time to communicate with your clients on a regular basis, and each factsheet will ensure that you're able to nurture relationships as part of your ongoing client service proposition.
Each factsheet used as part of a direct mail campaign provides an unrivalled way of maintaining client contact and providing information that your clients know to be impartial, relevant and timely.
A monthly Newsletter to manage your personal finance & aim to give a detailed outlook about Mutual funds, other investment options, and Market via INVESTMENT MANTRA.
I'm looking for 2 people that want to change their current situation.
See how $18, one time, can change your situation in one year. There is strength in numbers. Teamwork makes the dream work. Take a look here >>> http://tinyurl.com/kb7luuf
http://Kaea80.4c4all.com
http://flow77.4c4all.com
http://unitedlove1.4c4all.com
Women can't afford to avoid investing, but they don't have to do it alone either. Do your due dilligence on selecting a financial advisor who actually has additional credentials beyond just being licensed to sell you an investment. Ask the advisor how long they have been in the business, and what have they done to become a better advisor since they started. Just because someone has been in the business 15 years, doesn't mean they haven't simply repeated the first year 14 other times!
Year Book by Infinity Finserv Pvt Ltd ( Yr 2020)aditya72
The year 2020 has brought in a major health crisis in terms of COVID-19. This crisis has taught us many lessons - lessons to manage our emotions, lessons to think positive and lessons to manage our investments. Our E book will teach you many tips and tricks to help you manage your finances properly
AES International is a multi-award winning international wealth management and employee benefits organisation.
Find out why you should join our movement: https://www.aesinternational.com/
Savings and Investing are the foundations of a strong financial future for every individual. You can place a good foundation effectively with the Financial Planning exercise. But many of us find it difficult to put this into practice and are therefore faced with numerous difficulties in achieving financial goals. Most of us find it hard to understand the variety of financial products available in the market. Thus are unable to take informed decisions. This results in delaying or putting of the financial decision which can lead to unfulfilled goals and hurdles.
This presentation helps in understanding the basics of Financial Planning.
If you are beginning your investment journey (or if you want to rethink with a structured approach), there’s no better place to start! This document outlines a structured approach to investing that we wish we had when we started to invest.
Investing basics for beginners_ Investing 101.pptxBright Money
Investing basics for beginners: Investing 101
Why is investing important?
● Investing is an important part of financial well-being.
● It’s how most people plan and pay for major milestones - by investing with specific
goals in mind, like education expenses, buying a home, transitioning to retirement
and other big achievements and transitions.
● Investing works, making big-ticket expenses possible, because the money you’ve
invested grows and earns more than funds kept in most savings accounts.
What is a portfolio?
● Investments are typically bundled together in what’s called a “portfolio.”
● That’s a fancy Wall Street metaphor for the investments you've chosen, as if you kept
all your investments in a notebook or portfolio folder.
● You’ll review the investments in your portfolio both individually and collectively, to
make sure each one is working as expected and together they’re performing to meet
your goals, growing at their expected pace.
What is a mutual fund?
● The most common start point for beginner investors is a mutual fund.
● A mutual fund is a portfolio of investments that pools your money with other investors
to purchase a selection of stocks, bonds and other securities.
● Among investment options, mutual funds are the most widely used.
● Mutual funds are ideal if you're investing for a retirement plan, because they're built to
minimize fluctuations in earnings and grow more over the long term.
● A common type of mutual fund is an index fund, also known as ETFs (or "exchangetraded funds").
What is risk tolerance?
● Risk tolerance is your willingness to endure big swings in the market.
● It's your appetite for risk - how much are you willing to potentially lose in order to
potentially earn more?
● For example, some index funds are riskier than others, requiring a high tolerance.
● How much can you afford to lose without it impacting your financial security?
● Which means you’re at risk of losing some or all of the money you’ve invested,
depending on how the investment’s value moves.
What is risk tolerance?
● There are both upsides and downsides to risk. The more risk you’re willing to take, the more you’re likely to earn more - and the more you could lose, depending on the investment’s performance.
● As you start to invest - on your own or with an advisor, or even if you’ve already started - take time to measure your tolerance for risk.
What is diversification?
● One of the best ways to boost your risk tolerance - and the potential to earn more - is
to diversify your investments, keep a balanced mix of potential high-risk high earners
and more reliable, low-risk investments.
● Asset allocation is how you find the right balance - ensuring your money is distributed
between different types of investments with different types of risk.
● A simple way to explain it: “don’t put all your eggs in one basket.”
● With an investment portfolio, that means ensuring your money is invested in different
tools, across different sectors
Investing Rules You Should Never Break is a concise and practical guide that provides investors with essential principles for successful and sustainable investing. This e-book covers the fundamental rules that every investor should follow to avoid costly mistakes and achieve their financial goals.
The book offers insights and advice on how to create a diversified investment portfolio, manage risks, and maximize returns. It also includes strategies for managing emotions and avoiding common behavioral biases that can lead to poor investment decisions.
Investing Rules You Should Never Break is an excellent resource for both novice and experienced investors who want to improve their investment outcomes. The tips and strategies presented in this e-book are actionable and backed by research, making it a reliable guide for anyone seeking to invest wisely and profitably.
Dato’ Yau is a chartered accountant and has more than 30 years experience in auditing, corporate finance and general management. Prior to joining Tropicana as the Group Chief Executive Officer, he was with Hong Leong Industries Bhd where he served as group managing director since September 2011 and prior to that, he was Sunway Holdings Bhd managing director since April 2001. He has also served well in various Sunway Group Berhad.
What is mutual fund?, mutual fund investment, what is the risk in mutual fund? 4 types of mutual fund, how to invest in mutual fund. Mutual fund how to invest. mutual fund example, how mutual fund make money,
Our guide to wealth creation will help you manage your money the right way and plan for the life you want. We will help you create a strategy that will play a vital role in your financial future.
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Exploring Abhay Bhutada’s Views After Poonawalla Fincorp’s Collaboration With...beulahfernandes8
The financial landscape in India has witnessed a significant development with the recent collaboration between Poonawalla Fincorp and IndusInd Bank.
The launch of the co-branded credit card, the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card, marks a major milestone for both entities.
This strategic move aims to redefine and elevate the banking experience for customers.
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...
Financial Lessons from TFL
1. In his first post of 2012, Hemant had asked the readers to
share what they had learnt from TFL in 2011, I have penned
down some Financial Lessons which I have received from
TFL during 2011, which will hopefully last a lifetime.
The Financial Literates
www.TFLGuide.com
2. “The satisfaction you get in giving something useful
to someone is far greater than in getting something
from someone.”
The Financial Literates
www.TFLGuide.com
3. Everyone’s investment path starts with savings. There are
no hard and fast rules for saving. It certainly depends on
your personal economic conditions, your temperament and
of course on the unsuspected demands that inevitably arise.
How much you save depends on your age and family
situation.
How much you save depends on how much you earn, and
of course this changes throughout your life. It is important
to establish a regular saving habit for your own financial
health.
Savings are initially the basic component of your wealth.
After a number of years your wealth will grow from the
interest on your savings and the growth of your
investments.
The Financial Literates
www.TFLGuide.com
4. It is a profound mistake to assume that conservation of
wealth means putting money in the most secure
instrument. Protection of funds in the most
conservative way can prove to be disastrous in the long
term due to inflation.
Locking funds in low interest bank deposits defeats the
purpose of creating wealth. Inflation does its secret
work buy devaluing your purchasing power when you
are not looking. The total avoidance of risk earlier in
life guarantees a loss of real buying power later.
Riskless investors may feel better by remaining away
from the volatility of the financial markets, but over the
long haul their savings andLiterates invisibly erode.
The Financial assets
www.TFLGuide.com
5. It is important for investors to take long
term perspective in dealing with financial
matters. It is counterproductive to worry
over the daily ups and downs of the stock
exchanges. Solid gains in the financial
world are almost always associated with
holding long term positions. The idea is to
create wealth slowly, but surely.
Successful investing is a long range
endeavor. If you expect immediate results
and instant gratification, you are by
temperament not suited to long term
investments. Investing is a waiting game,
one in which you will need more patience
than money if you are to be successful.
The Financial Literates
www.TFLGuide.com
6. How much you can afford to invest depends on
your capital, your earnings, your expenses, your
responsibilities and so on. Before calculating how
much to invest, it is important to assess what you
have that can be best deployed.
Your net worth statement is your first step on
the road of financial planning. This statement is a
listing of everything you own against a list of
everything you owe. The balance what remains is
your net worth.
Your net worth statement provides a benchmark
to measure progress or slippage in your net worth.
It indicates how your assets are presently
allocated. This provides a platform upon which a
better financial plan can be built.
The Financial Literates
www.TFLGuide.com
7. There is no ideal model of asset allocation for all situations.
While reallocating assets age and income must be given
proper weight. It is important to remember that you do
not overweigh one asset class to the possible detriment
of others.
Having all your eggs in one basket, no matter how strong
the basket is or how carefully you watch it like a hawk
is not a good investment strategy. It can prove to be a
costly mistake in the long run. Beware of a situation
where your basket topples, your eggs break and you
are left with egg on your face.
One important goal of your asset allocation is to temper
your vulnerability. Hence it is prudent to diversify your
assets.
Asset allocation is a simple way to reduce your risk by
spreading investments across different asset classes. It
is also about spreading your investments over time
while factoring Literates financial requirements. Cont…
The Financial in your
www.TFLGuide.com
8. Asset allocation is based on the fact that different asset classes tend to behave differently.
While equity is volatile in the short term, over the long term it delivers the highest
returns among all asset classes. Debt instruments on the other hand are very stable but
they cannot beat inflation over the long term. A combination of these two asset classes
can give us the best of both worlds.
Asset allocation helps in avoiding efforts to time the market. Financial markets are impossible
to predict. One cannot say which asset class will perform when. The best thing to do is to
be prepared by allocating between assets with different risk return characteristics.
A prudent approach is not necessarily ultraconservative, but it is one that recognizes
definable risk and plans to take advantage of that. There are times to be aggressive and
times to be cautious. Your asset allocation is forever changing, partially because of
financial stages and partially because of the changing economic environment. Prudence
means acting on reasonable expectations that allow for building of a diversified portfolio
consisting for both fixed income and equity. You can then have best of both worlds.
The Financial Literates
www.TFLGuide.com
9. Buy a bond fund for fixed income and
diversified equity fund for equity. These are
the basics of the investment world and you
cannot go wrong with these.
The Financial Literates
www.TFLGuide.com
10. Sector funds are risky. You should not be
investing in exotic funds unless you have a
huge risk appetite.
The Financial Literates
www.TFLGuide.com
11. Power of compounding will turn things in your
favor in the long term provided you start early.
The Financial Literates
www.TFLGuide.com
12. An investment plan can help increase the value of savings faster if
undertaken early and pursued consistently. Growth of assets will then
sharply reduce the time it takes to gather a nest egg for retirement.
The purpose of saving and investing is not to make you wealthy in the
short term but to create wealth in a slow but sure manner.
It is shortsighted to start investing without substantial money in the bank,
funds that you will not touch in the most dire circumstances.
The one place where it is possible to increase the return on your
investment at an average rate that historically surpasses interest rates
paid by fixed income instruments is in equity.
Investing in equity is the only way to achieve real growth. The one
constant we can all be sure of is inflation. Thus the money invested in
debt is being constantly eroded in terms of its purchasing power.
For meeting your short term objectives invest in fixed income
instruments. For meeting long term goals consider equity investment.
The Financial Literates
www.TFLGuide.com
13. There are, to be sure, some risks in investing. If
witnessing the contracting and expanding of your
investments has a depressing affect on you,
perhaps you should not be directly involved with
the stock markets. Instead, consider less volatile
vehicles, such as mutual funds. There is no reason
to participate in an activity that causes anxiety and
may not be good for your health. Mutual fund
investors can still benefit from the investment
process without exposing themselves to undue
risks.
The Financial Literates
www.TFLGuide.com
14. You have to decide which risk personality fits your best. Are you
risk averse? Are you risk neutral? Are you risk lover? If you are
totally risk averse, stay away from the investment world. If you
are risk neutral, the investment world should pose no problem to
you. You have a wide variety of investment vehicles to choose
from that will provide safety and diversification. Risk lovers can
range over the whole investment world.
Before making any investments in mutual funds you must do a
risk tolerance test for yourself. Try to find out how much risk you
can handle. You should know that all mutual fund investments
are subject to market risks. There is a strong possibility of the
value of your investment going down immediately after your
investment in the short term. If you cannot bear to see your
investment losing its value any time then investment in aggressive
equity mutual funds is not for you.
The Financial Literates
www.TFLGuide.com
15. Investors have a vast department store in which to
shop. The menu is virtually endless, and your
choices are limited only by your effort and
imagination in the decision making process.
The financial world is constantly changing and
will continue to do so. New products are created
almost daily, and not all of them are useful for
you. A prudent investor will wait until a new
complex financial instrument has proved itself in
the marketplace. Beware of a new financial
product that claims to solve your all financial
problems.
The Financial Literates
www.TFLGuide.com
16. Most people are not psychologically ready to
invest until they feel financially secure. Security for
most people is sufficient money in the bank. Under
normal circumstances you should not seriously
consider investing unless you have accumulated
funds roughly equal to one year’s income in the
bank.
Some people are in the habit of leaving an
incredible amount of funds in their savings bank
account. Leaving excessive amount of cash in the
savings account is not needed. Cash to cover three
to six months’ living expense is suitable for most
people.
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17. Those people, who worry too much, must
normally avoid any form of credit. Some people
simply do not know how to use credit properly. It
is better for such people to always remain away
from credit.
Credit if not abused can be of great use. But it must
be controlled and constantly monitored.
The decision to use credit depends both on
financial as well as psychological factors. One who
takes on too much credit does so at his/her own
peril. It is normally not prudent to get credit of
more than 25% of your net worth.
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18. Before starting your investments, it helps to
know what your time frame is. Are you
investing for your short term, medium term or
long term objectives? In the investment world,
short term investments start tomorrow and last
upto two years, medium term investments are
those between two and five years and long
term investments are those which are made for
more than five years.
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19. Understanding your objectives and your own nature
plays a large part in successful investing. Many
investors face great difficulty in matching their
investments with their objectives.
There are two general goals for investors to pursue-
income and growth. These goals are conditioned by
such factors as safety and diversification. Investment
objective are few, but the investment world is
enormous.
Some investors invest to get a regular income. Income
is the return you get from invested funds. Income is
derived from dividend or interest. The other reason for
investing is appreciation of capital that is, seeing your
money grow.
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20. In financial matters it is prudent to protect yourself by having a
diversified portfolio of investments. Diversification is an attempt
to deal with the problem of market timing. Averaging is a
reasonable formula, a trade off with market realities. By constantly
investing fixed amounts at regular intervals over a long time, you
can minimize the effects of fluctuations of markets.
In the case of mutual fund investments, it is preferable to go for
investments in diversified equity funds or balanced funds.
Investing in sector funds or thematic funds can be risky due to
inadequate diversification. Apart from selecting funds having
diversification across market caps, it is also important to have
diversification across fund houses.SIP route of investing provides
time diversification by investing across different market cycles.
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21. You have to realize that fluctuations are part
and parcel of the investment process. They are
not necessarily a threat to the safety of your
investments. The financial world may offer you
potential rewards for tolerating some
uncertainty.
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22. Some people are of the view that at
retirement your portfolio should consist of only fixed
income instruments. This is clearly not a correct approach.
Minimum 20% allocation to equity is a must in the portfolio
of retired persons.
The combination of longer life expectancy
and constant inflation argues for a portfolio with a
continued commitment to equity along with fixed income.
Your assets should always contain some elements of
appreciation since you can never be certain about what
unexpected expenses you might face.
The only way you can hope to offset the
erosion of your wealth is by continuing to invest a portion
of your portfolio in equity mutual funds.
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23. Mutual funds are best suited
to investors who do not want
to commit a great deal of
time and money to the stock
markets.
They offer professional
management relatively
cheaply to small investors.
They serve the purpose of
safety through diversity and
expert management.
A mutual fund is a very
useful investment vehicle of
the small investor.
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24. Mutual funds are affordable for everyone.
Even a small investor can buy mutual funds
by investing a small amount at a time.
By buying a mutual fund you obtain the
services of a professional fund manager to
manage your money for a very small fee. With
a small investment you can buy the stocks of
several top companies, which may not be
possible for you to do as an individual
investor.
Thus by investing in mutual funds you are
able to get the benefit of diversification by
spreading your risk across different stocks.
Investments in mutual funds provide you
liquidity and are tax efficient.
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25. In the short term you cannot expect to
get large returns from your investments
in equity mutual funds. Real growth of
money takes place due to power of
compounding only when you remain
invested in equity mutual funds for a
very long time. You have to set realistic
expectations both for your goals as well
as your returns.
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26. Fund house as well as fund manager play a crucial
role in the long term performance of a fund. A
fund house with a good pedigree will boast of a
large number of highly performing funds. This is
because a good fund house will have systems in
place with a team of highly skilled and
experienced fund managers. When a good fund
house has systems in place, the performance of the
funds depends more on the systems and less on
the individual performance of a star fund
manager.
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27. It may not be worth buying a higher cost fund
that appears to be only slightly better than a
lower cost one. There is no reason why a fund
house should have higher costs than others. If a
fund house has higher cost, then it must justify
it by giving you higher returns on your
investment.
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28. A large number of mutual
funds are available from
around forty mutual fund
houses. Each mutual fund has a
stated objective. Each mutual
fund has some potential risk.
You must spend some time for
close understanding of the
funds. This will help you to
meaningfully diversify your
mutual fund portfolio. Stated
objective and risk profile of the
funds selected must match with
your objective and risk profile
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29. Mutual funds with large stakes in just a few
sectors will likely be more volatile than the
more evenly diversified funds. Look at the
sectoral history of the fund to gain a good
perspective.
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30. A portfolio that puts most
of its assets in just a few stocks will likely be
more volatile than a fund that is spread across
hundreds of stocks. But there could be rewards
of concentration.
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31. Performance comparisons must be used only to
compare the same type of fund. You have to
compare apples with apples. You cannot
compare apples with oranges.
Past performance of the fund is no indicator of
future results. Do not focus on short term
returns. Check long term performance of the
fund across market cycles.
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32. Your mutual fund portfolio must be properly
diversified. A balance must be maintained
across market caps like large cap, midcap and
small cap. There should not be any over
represented or under represented areas.
The key challenge in mutual fund investing is
to choose the right funds to meet your
objectives.
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33. The decision on which funds to invest in should be made in the
context of your overall portfolio that should have core and satellite
segments. The core will consist of anything between 60 to 80%
depending on your risk appetite. The core will provide stability to
your portfolio. It will mainly consist of large cap and large &
midcap value funds. The core segment should be made of well
diversified and more predictable funds that have a proven long
term record of outperformance. Funds that rank in the top quartile
consistently over time periods of one, three, five, seven, ten years
would be good candidates. After identifying funds, ratings can be
used as the final deciding factor.
The satellite portion of your portfolio could be made of well rated
funds that show the promise of good performance in the future. It
will consist of multi cap funds, mid & small cap growth funds,
sector funds, and thematic funds. These funds are risky but have
potential of high growth. The exposure to sector and thematic
funds should be very low because of the high risk involved in
these funds.
A small allocation to a sector oriented fund, a more flexible fund,
or a more concentrated fund could boost your returns.
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