Investment Advisory

Portfolio management is the art of making decisions about investment policy, asset allocation for individuals, and balancing risk against performance. Portfolio management is all about determining strengths, weaknesses, opportunities, and threats in the choice of debt vs. equity, encountered in the attempt to maximize return at a given appetite for risk.

The review is a method used to return a portfolio to its original target allocation at annual intervals. Otherwise, the movements of the markets could expose the portfolio to greater risk or reduced return opportunities. For example, the portfolio manager decides how to bifurcate your fund 70% equity & 30% fixed income allocation then he continues to look at market ups and downs then he further changes the method of investment to 60/40 as per market needs. Such a portfolio manager plays a major role to set our financial investment goal in our today’s life.

We begin by understanding your family wealth management objectives and priorities alongside your overall family and corporate circumstances and the nature of your estate. We, then determine your goals and help you set out a sound approach for effective solutions. Finally, we facilitate the implementation of solutions and structures through our firm, which employs our in-house team of experts as well as a carefully identified set of technology partners to ensure a comprehensive solution.

Financial Planning is the process of meeting your life goals through the proper management of your finances. Life goals can include buying a house, saving for your child’s higher education, or planning for retirement. This Process helps you take a ‘big picture’ look at where you are currently. Using this process, you can work out where you are now, what you may need in the future and what you must do to reach your goals. The process involves setting life goals, examining your current financial status, and coming up with a strategy or plan for how you can meet your goals given your current situation and plans.

• BENEFITS OF FINANCIAL PLANNING
  A financial plan provides direction to your financial decisions. It allows you to understand how each financial decision you make affects other areas of your finances. By viewing each financial decision as part of the whole, you can consider its short and long-term effects on your life goals. You can also adapt more easily to life changes and feel more secure that your goals are on track.

Fortunately, CERTIFIED FINANCIAL PLANNER™ practitioners are available to assist you in the process of developing a sound financial plan. Selecting appropriate investments is simply one ingredient in the recipe for an effective financial plan that should also include retirement and estate planning.

An experienced financial planning team will help you to :

• IDENTIFY YOUR GOALS.
• UNDERSTAND YOUR CURRENT SITUATION.
• DEVELOP A PLAN THAT ADDRESSES YOUR GOALS.
• IMPLEMENT AND MONITOR THE FINANCIAL PLAN.

Mutual Funds are financial instruments. These funds are collective investments that gather money from different investors to invest in stocks, short-term money market financial instruments, bonds, and other securities and distribute the proceeds as dividends. The Mutual Funds in India are handled by Fund Managers, also referred to as portfolio managers. The Securities Exchange Board of India regulates Mutual Funds in India. The unit value of the Mutual Funds in India is known as net asset value per share (NAV). The NAV is calculated on the total amount of the Mutual Funds in India, by dividing it by the number of units issued and outstanding units on daily basis.

• BENEFITS OF INVESTING IN MUTUAL FUNDS
  Anyone aware of the stock market is not new to mutual funds. Mutual funds have gained in popularity with the investing public especially in the last two decades following are some of the primary benefits.

1. Professional Financial Experts
Every Mutual Fund scheme has a well-defined objective and behind every scheme, there is a dedicated team of financial experts working with the specialized investment research team. These experts diligently study companies, their products, and performance, and after thorough analysis, they decide on the best investment option most suited to achieve the scheme’s objective as well as the investor’s financial goals.

2. Diversifying Risk
It plays a very big part in the success of any portfolio. Mutual funds invest in a broad range of securities. This limits investment risk by reducing the effect of a possible decline in the value of any one security. Mutual fund unit-holders can benefit from diversification techniques usually available only to investors wealthy enough to buy significant positions in a wide variety of securities.

3. Low Cost
Mutual Funds generally provide an opportunity to invest with fewer funds as compared to other avenues in the capital market. You can invest in a mutual fund with as little as Rs. 5,000 and also have the option of investing a little of Rs.500 every month in a SIP or Systematic Investment Plan.

4. Liquidity
You can encash your money from a mutual fund on an immediate basis when compared with other forms of savings like the public provident fund or the National Savings Scheme. You can withdraw or redeem money at the Net Asset Value-related prices in the open-end schemes. In closed-end schemes, the lock-in period is mentioned, an investor cannot redeem his investment until that period.

5. Variety of Investment
There is no shortage of variety when investing in mutual funds. Some funds focus on blue-chip stocks, technology stocks, bonds, or a mix of stocks and bonds and with due assistance from a financial expert, the investor can choose a scheme that fits his requirements and helps him achieve maximum profitability.

TYPES OF MUTUAL FUNDS

1. Equity Funds
Equity funds aim to provide capital growth by investing in the shares of individual companies. Any dividends received by the fund can be reinvested by the fund manager to provide further growth or paid to investors. Both risk and returns are high but equity funds could be a good investment if you have a long-term perspective and can stay invested for at least five years.

2. Debt or Income Funds
The aim of debt or income funds is to provide you with a steady income. These funds generally invest in securities such as bonds, corporate debentures, government securities (gilts), and money market instruments. Opportunities for capital appreciation are limited.

3. Hybrid Funds
Hybrid funds aim to provide both growth and regular income as such schemes invest both in equities and fixed income securities in the proportion indicated in their offer documents. The investor may wish to balance his risk between various sectors such as asset size, income, or growth. Therefore the fund is a balance between various attributes desired, however, NAVs of such funds are likely to be less volatile compared to pure equity funds.

4. Liquid Funds
Liquid funds are a safe place to park your money; it is an appealing alternative to bank deposits or current account or saving account because they aim to provide liquidity, capital preservation, and slightly higher interest rates than bank accounts. Returns on these funds fluctuate much less compared to other funds as the fund manager invests in ‘cash’ assets such as treasury bills, certificates of deposit, and commercial paper.

5. Index Funds
Index funds are passively managed funds i.e. the fund manager attempts to mirror the performance of a benchmark index like the BSE Sensex or the S&P CNX Nifty, by being invested in the same stocks. NAVs of such schemes would rise or fall by the rise or fall in the index.