In the last one months 2 incidents (suicide) took place and both happened in south and it reiterates one thing, when it comes to manage money you can’t do it on your own, irrespective of your position, talent and experience so on and so forth. Below mentioned names are real life examples.
1)V. G. Siddhartha 2) V. B. Chandrasekar
Both the individuals are successful in their career and they have build something on their own, yet when it comes to take important decisions, especially, when it involves huge money, and top of it when you are borrowing huge money you need to introspect more you need guidance for sure.
In the wealth creation journey, ease of operation (buying or selling) is the least significant work, compared to many other things given below…
1) How to map your investments with long term goals.
2) How to select a fund? After selecting the fund when to increase or when to get out if there is a good or bad performance happens.
3) When the market falls heavily or highly volatile for longer period, how to get motivated and stay invested, when the entire world is painting a gloomy picture about our economy.
4) How to differentiate news from the noise.
5) Is there anyone to lean on or anybody act as a sounding board when the situation is very bad.
What you save is maximum of 1%, in terms of expense ratio which is nothing, when compared to the wonderful exciting journey of wealth creation. In fact, that is the insurance premium you are paying for the safety and well guided journey by your professional financial advisor.
In case, if you are very particular about the cost, why are you paying the DIRECT expense ratio also. Instead, you can open dmat account with zerodha and select a stock which is mentioned in the mutual funds, you are planning to invest and you save another 1% as well. Unfortunately, it didn’t work. In fact, many big investors like Warren Buffet, Rakesh Jhunjhunwala’s portfolio is available in public. Why nobody matches their return. It is very simple, when you buy the stock or funds you are only buying the tips what they are buying and not their conviction.
Conviction is more important, that only helps you to increase or decrease your bet. You can’t match professional guidance against your internet knowledge. People who wants to stay fit, might not require fitness centre, but those who wants to develop their body and participating in any competition, you need fitness centre and personal fitness trainer for sure.
Long term investments are not different from the above. Out of 130 Crore population not even 4% participated in the equity market. It is clear cut evidence, that it is not about ease of buying & selling, it is much more. That can be addressed only by your professional advisor. Here, advisor have to act on client interest, because it is not a transaction based and it is relationship based which is long term in nature.
To nurture any relationship, it takes time to understand each other. You can trust your financial advisor because he can’t grow in their profession if your goals are not met.
Let us not be penny wise and pound foolish. We have all the more responsibility to give better tomorrow for our loved ones.
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