Within a year, assets under management of mutual funds in India increased from about Rs 3,800 crore to Rs 4,600 crore, an increase of nearly 17%. This is much higher than the growth rate of bank deposits of only 10-11% during the same period. The country’s investing class, especially its young working-class people, has begun stashing some of its surpluses in mutual funds. Financial planners/advisers have played no small role in this apparent shift in financial investing.
two books, Financial Independence Marathon Author: Vinod V Bhat & If God is your financial planner A recent book by Suresh Sadagopan explores the whys and wherefores of financial planning in a language that simplifies the subject for readers of all levels.
If there is one thing these two books have in common, it is the simplicity of language and the directness of communication. They both use conversational techniques to illuminate their essence and essence. Both avoid jargon and sophistry and seek to present problems and solutions for working young people, including those with children.
Bhat is an engineering graduate from IIT Bombay and has a degree in finance from various universities including Wharton, while Sadagopan is known in the industry as the voice of financial planners — he is a registered investor Founding member of the Association of Consultants (ARIA)). As such, both represent the growing community of financial planners in India.
The entry of such professionals into the world of financial advisory is itself a testament to the need for experts who can advise highly paid individuals such as doctors, engineers, lawyers and even media professionals who earn relatively well but lack the security of government jobs .
How to plan and invest your money wisely and achieve your goals – like educating your children in expensive private schools, pursuing higher education abroad which has now become a fashion, apartments in posh places and early retirement life ,if possible.
What the audience needs is an analysis of residual income allocation options and a relatively good return. Bhatt and Sadagopan address these needs in their book.
Bhat framed the topic as a matter of achieving financial independence. This is a thoughtful term. Key points are summarized after each chapter. Therefore, in terms of the organization of the content, it is easier for any reader to understand the gist of his points. At the end of the first chapter, he builds the case by stating that money “creates” time, revisiting the old theme of time being money or money being time.
His book is inspiring and starts from the basics. He laid out the principles and then wrote down the options and gave the lowdown on them. For example, Chapter 11 is about mutual funds. He has also written on related topics such as the Peter Lynch Principle, which even investors who only trade through mutual funds should be aware of as it will improve their ability to critically compare and contrast the performance of various funds. . Ultimately, only concentration and concentration can bring you great rewards. Butt quotes Usain Bolt, one of the great track and field athletes of our time: “I trained for four years to run nine seconds, but people give up when they don’t see results in two months.” This also sums up Bhat’s advice to investors.
Sardargopan, on the other hand, was more candid. For example, in his first chapter, he busts some myths about crazy house/apartment buying. “Renting is a good decision because the rental yields from landlords are only around 2/3%. The landlord is subsidizing your stay and allowing you to live in a property you wouldn’t otherwise be able to afford.” At least for those with affordable This is relatively relevant advice for people moving jobs. The government is also trying to get IT assessors to take the non-exempt route, at least in the last federal budget.
Sadagopan discusses ethics in the financial advisory world and the need for these professionals to be vigilant about conflicts of interest. Recipients of advice should also remember that these advisors are not responsible if their advice is useless or devalues your hard-earned savings.
It is recommended that you read such books before approaching a consultant as this will give you an idea of what you can expect and what you do not need. Ultimately it’s your money.
So, bottom line, both books greatly improve your understanding of your chances of making money work for you. If you have the time and inclination, you can do it yourself. Or you can choose to seek professional advice and then make a call. But always remember that when you go to sleep at night, you will be alone.
The reviewer is a banking and financial commentator
Title: Financial Independence Marathon
Author: Vinod V. Bhatt
Publisher: Penguin Business
Price: Rs 299
Title: If God Was Your Financial Planner
Author: Suresh Sadagopan
Publisher: Westland Business
Price: Rs 499