Are you investing for Long term? Think again.

Hello Investor,

Alert – Simple Algebra required for understanding

It has been said that “Change is constant in life.” It is evident in our lifecycle. Life starts as an infant, to a school going kid, than to a college going teenager, to a family person and lastly to phase of retirement.

All phases comes with a change which we accept as human being.

When it comes to hard earned money, we question the rule of change. One must understand the importance of outperformance and underperformance. Let me explain the simple criteria considering current market situation.

  

Why Portfolio Reshuffling is important?

•      Imagine a situation of index value at 100 before Covid situation.

•      Due to Covid, Index falls from 100 to 80 (-20%)

•      At the same time, a performing scheme is outperforming index and falls only -15%

•      While an underperforming scheme is underperforming index and falls -25%

•      In an hypothetical situation, Index recovers from 80 to 100 which is 25% growth.

•      As the performing scheme fell less to 85 will become 106.

•      And the underperforming scheme fell more to 75 will become 94.

Case here to prove is loss can be recovered by patience but underperformance cannot be recovered.

Mutual fund investors must review and reshuffle portfolios at different time horizons.

Nishit Siddharth Shah

Two Months and Two stories.

Dear Patrons

Two Months and Two stories.

September 2018 – India’s GDP has grown by 8.2%. Highest in entire world. We are living in a country which is fastest growing economy in the world. Reasons,

• Increase in I.T. filling (More Direct Tax Revenue) and Consistent GST collection (More Indirect tax Revenue)
• Highest young generation among world population. Urbanization and Growth across sectors in tier II and tire III cities.

October 2018 – Stock Market in India has nosedived more than 4500 points (Apprx 12% down) in almost 1 month and investors have started to panic. Reasons,

• Crude price going up and reports that it will reach to 100$
• Depreciating rupee which is reaching almost Rs.75 now

What to do now?

• Currently Marketcap of Indian Stockmarket is 23% in discount with the corresponding GDP. As the GDP is higher, it means that economy is strong and sentiments are bad.
• Indexes have beaten down heavily. Largecap, Midcap, Smallcap are down 11%, 23% and 31% respectively. For Long term investor, Investing now is like buying Platinum at price of Silver.

Remember: There is “Regret of commissions” and also “Regret of Omissions”.

Should one not look at times of 2008 and 2013 where market bounced back at Rocket speed?

At Shalibhadra, we believe that ‘Regret of Omissions” is much greater. We don’t want any investor to be left behind in the growth story. We are actively calling investor to allocate some part of their surplus funds to allocate for Equities.

Nishit Siddharth Shah

‘Modern slaves are not in chain but in debt'

Dear patrons,

‘Modern slaves are not in chain but in debt'

The instant EMI culture is hurting the consumption oriented population of India.

The phrase ‘Aamdani Athanni Kharcha Rupaiya’ is coming true. People are spending before even earning, thanks to Easy Loan, EMI Trap.

• Loan (Debt) is available for...
• Higher Education for child – Education loan
• Business Expansion – Business loan
• Buying Appliances – Consumer loan
• Vacation Tour – Personal Loan
• Buying Home (Beyond Capacity) – Home Loan
• Buying Car (High End Choice)  – Car Loan

For various expenses you will get a loan but ever you heard about a loan for “Bette Retirement”?

Entire life is Spent as “Zindagi na milegi dobara” by spending through EMIs & it is too late when importance of retirement is realized.

At Shalibhadra, We believe that a dignified Retired life must be planned on top most priority.

Each & every reader of this newsletter must get their retirement planning done. This one page report/Financial Planning is very simple & easy to understand. Even if you have done get it rechecked.

Nishit Siddharth Shah