Are you Mutual Fund Investor?

Are you Mutual fund Investor?

You may be think that this question is as simple or silly but in really it is very important question for your economic freedom and wealth creation. First of all if your answer is YES then I want to congratulate to all of you for participating in mutual fund schemes. Most of you are investing in XYZ amount in a particular scheme suggested by a friend or an agent without any target amount and also knowing without risk which is associated with your schemes.

In general, I have observed many investors consider mutual fund as share market investment only but this is not true. It also invests in debt instrument and fixed term deposit investment also. Unfortunately in India most of investor are not getting benefit from debt mutual fund also. People even do not know in which schemes they should invest either in equity schemes or debt schemes or hybrid schemes. They even do not bother to know about this and in some cases agent have not much knowledge about mutual fund schemes.

Many investors often lament that they had lost a lot of money in mutual fund which is suggested by someone else or randomly picked by themselves. It is due to lack of awareness and lack of understanding about mutual fund as a product.

In my view, mutual fund is the best investment option available in the financial market for any investment time frame. Before start investing in mutual fund you should decide your investment time horizon and target amount at the end of investment period. There are different types of schemes available in the market for different needs and investment horizon. You have to decide your investment time frame first. Your investment period may be from 1 week 20 years or even more years and accordingly you should invest in suitable schemes.

If you are not able to choose the right schemes or you don’t have time please contact an IFA (Independent Financial Adviser). We also help to the investor to choose the right mutual fund schemes. Believe me If you invest in disciplined manner after knowing the product you will definitely create a lot of wealth. There are many equity schemes which have generated multiple times return in 10 year or 15 year time period.

If you have doubt about investment product and want more information regarding investment or you need investment services, feel free to ask us. We also conduct the seminar on investment and financial planning. If you are interested for conducting seminar in your city, just drop the mail.

Warm regards,

Arvind Trivedi

Certified Financial Planner

arvind.trivedi79@gmail.com

Are you Smart Investor?

Are you smart Investor?

Whenever I ask this question to investors or my friends, unfortunately the answer come in “No”. In our country, majority of people have no clear time frame and understanding the risk associated with a particular investment. They often invest on the advice of relative and sweet talking agent and even do not want to know about investment in details. In this article I am explaining a one fine example of smart and value investing.

In four wheeler segment, Maruti is a reliable and very well known brand in India and has been biggest carmaker year after year. Company has many popular model and Maruti Alto has been remained the top selling car for the tenth year in a row.

In 2003, Maruti had come with IPO at price Rs 125 and listed in the exchange at the price Rs 164. Many people had booked the profit at that time and that was the biggest mistake. After 12 years listing, the share is trading now around Rs 3,500, nearly 28 times higher than the IPO price.

The price of Maruti 800 was Rs 2 lakh in 2003 and If you had invested that amount in shares of Maruti company, your worth is Rs 56 lakh in 2015. It means you can now buy BMW or Mercedes by that investing amount.

It is just one example of value investing. There are many multi bagger companies in market which had outperformed to all investment avenue and will outperform in future also. I will say, the time is still in your hand you can still choose wealth creator companies and by investing them you can ensure your financial freedom.

If you have doubt about investment product and want more information regarding investment or you need investment services, feel free to ask us. We also conduct the seminar on investment and financial planning. If you are interested for conducting seminar in your city, just drop the mail.

Warm regards,

Arvind Trivedi

Certified Financial Planner

arvind.trivedi79@gmail.com

Sector Update: Insurance

Sector Update: Insurance

After 7 years wait, Indian parliament has approved long pending insurance bill. According to insurance bill, now FDI has been raised to 49% from 26% with Indian ownership control. Penalty for non compliance raised to 25 crore. It is Modi govt’s first major reform sign. Industry expert hopes that this insurance bill help bring in over Rs 50,000 crore in fresh capital which will stimulate the insurance sector.

From 1st April 2015, the premium rates for third party motor insurance cover has been raised after issuing new draft by IRDA. IRDA is also planning new investment norms for general insurance companies. According to new norms, investment limit in securities other than those approved would be now 10% earlier it was 25% of total premium collected in a fiscal. It may reduce the earning of general insurance companies.

The Bombay High Court has asked to IRDA to ensure that insurance companies should not involve TPA in the claim settlement. As per ruling of health insurance, allowing or rejecting claim should decide by insurance companies not by the TPA.

According to British Medical Journal, India’s private healthcare sector treating patients as revenue generators. Doctors get Rs 30,000 to 40,000 to refer patients for angioplasty. Unnecessary tests are being carried out and fabricated reports were generated. Large sums were paid for the same only to fill the pockets of referring doctors and pathologists. There is serious need for stringent, transparent and mandatory regulation.

IRDA said that insurance companies can appoint individual agents on their own from 1st April 2015. As per current practice, IRDA grants license to a person to become an agent of insurance company. After the new norms, whole licensing systems will go.

To bring more transparency, IRDA is planning to treat health insurance as a stand alone segment. As per current rule health insurance come under non life insurance category. Now, separate regulation will be made by IRDA for medical insurance.

If you have doubt about investment product and want more information regarding investment or you need investment services, feel free to ask us. We also conduct the seminar on investment and financial planning. If you are interested for conducting seminar in your city, just drop the mail.

Warm regards,

Arvind Trivedi

Certified Financial Planner

arvind.trivedi79@gmail.com