Financial

Run numbers, you may have enough to quit

Many professionals already have the required F*** Y** fund if only they would do the calculations. Like huge elephants who are conditioned to believe they cannot break free from the short ropes that hold them they continue on the treadmill. One of the biggest pleasures of our advisory profession is to see the light go up in our clients eyes as they realise they can pursue the lifestyle that they had been dreaming of. Harsh Roongta’s article in Business Standard today . Your comments are welcome as usual.

Maximising returns can harm financial health

Trying to maximise returns can be injurious to your financial health. Harsh’s article in Business Standard today uses cricket analogy on why the decision-making process (even if the outcome is not the highest) is more important than just a successful outcome. When our ancestors lived in the jungles the outcome of one mistake meant instant death. Hence the need to always be right is baked into our evolutionary consciousness. But in investing you don’t need to be always right. Being mostly right is sufficient. “I would want this batsman to be in the team” said one of the selectors cited in the article. “Only if I was the captain of the opposite side” he went on to add. 😊 . He enjoys receiving your comments and suggestions and will respond to queries as quickly as he can.

Landmark reforms: Costs for some, benefits for all

The 100% made in India Account Aggregator framework once active will transform India by giving the citizen power over her own data and allowing digitisation and speedy reforms. But like the credit bureau reforms it may take a long time in having an impact because existing players will see costs and benefits will be for everyone. India cannot wait for a decade and in Harsh’s article in business standard he write about how the financial sector regulators need to set a firm date for IPs to comply. India needs to hasten the slow pace of furious change. Your comments are welcome.

Limit Section 54 benefit to curb money laundering

Why the price of your flat is so high? The demand from ” Investors” with black money keeps the flat prices high for genuine users. The exemption for long term capital gains under section 54 encourages such money laundering activities. Harsh’s article in Business standard today suggesting how the government can limit the exemption so as to prevent money laundering and at the same time not impact the genuine buyers who may be upgrading their flats. This tax loophole should be closed to bring down the cost of flats for genuine buyers. Your comments are most welcome

More is less in client communication

Regulations and custom dictate a deluge of communications to an investor from advisors, platforms, mutual fund houses/PMS companies. With pre-and post communication coming in for each transaction it is a barrage of communication that overwhelms most investors. They respond by ignoring even the important communications that may be buried deep inside this barrage of communication. To top it most such communication is worded in non understandable legal language. One of the progressive regulators can take a lead to at least attempt much needed simplification and rationalisation exercise in the matter. A good first step would be to allow consumers to actively choose what kind of communication they wish to receive (or not receive) from their service providers. The second step would be to penalise service providers who disregard the active choice made by the consumer. Language and process simplification can follow later. Harsh’s article in Business Standard. Comments welcome.

Win or endure? Choose advisor based on goal

A good coach who is coaching you to complete the marathon (not win it) may appear counter intuitive by asking you not be happy about the quick completion of a 10 km practise run quickly or be dejected because you got breatheless when you navigated a uphill stretch during another practise stretch. The coach may instead ask you to concentrate on the speed at which the heart rate returns to normal after the practise run. Similarly an Investment advisory coach helps you ignore the short term gains or losses while working out the right metric to monitor while completing your exercise. Harsh’s article in todays Business Standard on “Why to have a coach who does not help you win”.

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