John Mario, 29 opened his corporate innings with an IT company four years ago.
As a fresher, he earned a handsome package being an alumnus of the most prestigious engineering schools of India.
Since his career began, his sole aim was to work hard and party harder.
The last four years have been fantabulous for him.
His company twice deputed him to Europe as a project manager. At his age, it was a big achievement for him.
He leased out an apartment and spent most of his savings on touring, staying at hotels, and buying costly clothing and accessories.
These days though, John is frustrated.
(Image source: unsplash.com)
His girlfriend, Adriana, wants him to get serious about getting married (No! that’s not the reason for his frustration) and start investing money wisely for their future (this indeed is). They plan to tie the knot in the next 6-8 months.
Adriana, his batch-mate, works with another IT company and is a serious saver. But she is wary about putting her money in any market-related investment instrument.
She’s happy with modest interest her bank FDs and Public Provident Fund (PPF) savings pay.
She knows John can cope with the stress that market volatility exposes investors to and so wants him to take investing seriously. John understands her concerns and he has finally decided to party less and invest more.
He’s curious to know about equity markets and mutual funds because he heard that both these options can help investors make huge returns.
About a week ago, Adriana insisted that John speaks with the investment advisor of a private sector bank where he has the salary account.
John met a bank relationship manager at a bank branch.
For the relationship manager, John was an easy prey—a person earning a fat salary package with no knowledge on investing.
To sound genuine, the bank relationship manager recommended that John invest Rs 10,000 each per month in three mutual fund schemes through a Systematic Investment Plan (SIPs).
But what he didn’t reveal was those schemes earned him the highest commissions. One of them was a New Fund Offer (NFO).
[Read: Why You Should Be Careful About Investing In NFOs]
The bank relationship manager asked John about his marital status and number of people depending on his income. When he learned there weren’t any dependents, and that John was soon getting married, he was quick to suggest a Unit Linked Insurance Plan as well (ULIP).
[Read: 5 Factors To Look Into While Buying ULIPs]
You are an esteemed customer for us. As you know, bank, its subsidiaries, and other group of companies together can be your one-stop-financial shop, the relationship manager said.
John knew little about the nitty-gritties of financial markets and investing, but he had heard about mis-selling of banks. Hence, he dealt cautiously.
[Read: Investing In Mutual Funds Through Banks Is A Bad Choice. Here’s Why…]
Both John and Adriana researched online to assess how genuine the advice was. Not so surprisingly, John found strong counter views that on PersonalFN’s website to what relationship manager of a bank had told him. They were convinced by PersonaLFN’s unbiased and independent views, backed by research, and ultimately opted for PersonalFN’s financial planning and mutual fund research services.
PersonalFN writes incessantly for the benefit of naïve investors like John and Adriana. PersonalFN gets numerous phone calls every day, seeking advice on personal finance and investing.
And at PersonalFN we’ve always:
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Discouraged investors to invest in ULIPs and NFOs
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Backed our advice with thorough research, devoid of commissions
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Encourage need-based approach to investment and financial planning
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Put investor’s interest at fore by offering unbiased advice; and
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Are big proponents of Direct Plans of mutual funds
[Read: How To Invest In Direct Plans of Mutual Funds Online & Offline]
If you are a couple like John and Adriana, follow this six-step strategy to achieve financial wellness.
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Identify your financial goals
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Know your risk appetite
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Draw a personalised asset allocation taking into account the first two points
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Build a portfolio made up of various asset classes—equity, debt, and gold
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Review your investment portfolio periodically, at least once a year
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And don’t forget to buy an adequate health insurance and life insurance cover
To live peacefully, you need to plan your finances and invest wisely.
And you need not worry if you do not have the time and expertise to create a financial plan for yourself and do a comparative assessment of the available investment options.
PersonalFN can handhold you to plan for a successful financial future. PersonalFN's investment advisers, who effectively serve as Financial Guardians, will always put your interest at the fore.
Unlike private sector banks and their relationship managers, PersonalFN makes no compromise on research before recommending mutual fund schemes to investors. It follows a comprehensive rating methodology.
PersonalFN has a long track record of offering unbiased mutual fund research services. It analyses thousands of data points to shortlist schemes and also applies a whole host of qualitative parameters to select only a handful of schemes for your portfolio.
If you’re someone who is in the prime phase of the economic life cycle, looking for “high investment gains at relatively moderate risk” to satisfy your financial goals, PersonalFN offers you a great opportunity: The 2018 Edition of PersonalFN’s Premium Report, "The Strategic Funds Portfolio For 2025"
The Strategic Funds Portfolio For 2025 is built on the “Core and Satellite strategy” for mutual funds investing
“Core” applies to the more stable, long-term holdings of the portfolio; while the term “satellite” applies to the strategic portion that would help push up the overall returns of the portfolio, across market conditions.
The ‘core portfolio’ should consist of large-cap, multi-cap, and value-style funds, while the ‘satellite portfolio’ should include funds from the mid-and-small cap category and opportunities funds.
PersonalFN’s research states that 60% of the portfolio should be reserved for Core mutual funds and the balance 40%, for the Satellite mutual funds.
Also, when there is a change in market outlook, PersonalFN will revisit the strategically structured portfolio by reviewing assigned weights to funds and the portfolio.
How will this help?
✔ Your portfolio will be optimally diversified;
✔ The risk to your portfolio would reduce;
✔ Possibly reduce the need for constant churning;
✔ You benefit from a variety of investment strategies;
✔ Create wealth cushioning the downside; and
✔ Potentially outperform the market;
PersonalFN’s “The Strategic Funds Portfolio for 2025” is geared to potentially multiply your wealth in the years to come. It is based on a rare investment strategy used by successful investors. Subscribe now!
Happy Investing!
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