An explanation on my investing methods

 An explanation on my investing methods

I have been asked in the past and also constantly every few weeks that why am I so conservative and my suggestions for fund Selection .

I am asked why I do not suggest ETF or direct stocks or other avenues like REIT or INVITS.

The simple reason is that when I have to offer a common advice to over 1000 people it has to start on a plane and a simple platform.

The question here is not just of investing, but developing a habit and a subconscious activity that you’re saving and investment is a very important part of your working life.

And since our working, life is very unpredictable and uncertain, it is important that we accumulate that Wealth as soon as possible.

At various stages of wealth generation that is after reaching levels of 30-50 lakhs or even one CR people contact me to ask what changes can they make in the portfolios?

Since this communication is mostly direct with me, I suggest that they can diversify into various other channels because then the discipline becomes intact and it is possible for them to take calculated risks.

But all this has to be built up upon a base of a minimum corpus, which can be different for different people.

In the process of accumulating and building wealth up to a certain amount that is 50 or 60 or 75 lakhs you develop a kind of patience and also become familiar with different aspects of investing NR ready to take any risks further on.

By then your salary also increases, and then apart from the standard mutual fund portfolio, which you have been investing in, you can start taking your own chances with sector, funds, index funds, thematic, funds, and other formats of various hybrid funds.

By this stage, you will also realize that all the current themes which keep coming up every few years are actually seasonal and if you get into them, you must also learn how to get out of them.

This group serves as a kindergarten for lifelong financial planning. It is not your college or university for that either you will have to contact me directly or you will have to take your own route with the help of a professional financial planner or MFD.

I have absolutely nothing against direct stocks you can always invest in them, but a small warning from my side would be to keep it parallel with your mutual fund investments.

One mantra that I will give you for your direct stock investing is that whatever amount you set aside for investment you should never let it disappear .

that is after selling a particular stock Make sure it comes back to your stock portfolio back account. 

I have seen that even multi bagger stocks been sold the proceeds are spent on frivolous things.. and that is why the Wealth is never built via stocks.

Mutual funds create wealth because one rarely touches them even if they are not performing adequately.

The moment the moment fluctuation of prices in stocks and the high profile treatment on the television and social media gives a very short life to each stock and does not allow you to hold it for long for it to give you benefit .

I have myself been investing in direct stocks and later in ETFs for as long as my working life, but two things that I have been able to understand this …

Firstly, the returns overall are not worth the time that you spend in it 

Secondly, only about 10% of your stocks may actually turn out to be multi bagger or worth investing and their history becomes much longer than the human memory .

So if you are new to investing join the group to get into the habit and start building your wealth and later with the help of a professional financial advisor, you can decide on other formats