Investoshashtra

Welcome to life's Golden day

2025-06-10T18:50:00.005+05:30

Investoshashtra!!!📜📜📜

ईन्वेस्टोशाष्त्र!!!📜📜📜

Today is one of the most happiest day of my life - yesssss it's RETIREMENT hip hip hurray...

Today is the day I waited for life...with lot of dreams and aspirations of doing a whole lot of things.

Today I don't have a fixed schedule or daily commute or any stress related to job or profession.

Today I can spend time with friends and loved ones, time for hobbies, travel and exploration, giving back to society, personal growth and a lot more.

But only worrying thought I have amidst all this celebration is, will my kitty be sufficient to live and pursue my and my spouse's dreams happily and comfortably, Will it last for my lifetime?

So,I can't plan it haphazardly which I might regret later with no time left for course correction..

I need to understand today all the variables which can affect my life.

Like a Rs.2 crore retirement kitty gets wiped out or will be zero by the time I will reach 82 assuming total monthly expense of Rs.70k (including medical, travel, festivals, kids and grand kids etc.) and my own inflation rate of 8% (Including lifestyle inflation) with 7% rate of return (post tax).

Why did it happen??

The only reason is while planning I forgot the biggest devil for my retirement life i.e. inflation and taxes...

I invested assuming that interest earned today on my corpus of 2 crore is much more than the present expense of 70k/month. So my corpus will keep growing and I can comfortably live on interest component.

The fact is even though in initial years interest earned on kitty is going to be much higher than monthly expenses. But slowly with passing years expenses will keep scaling higher, whereas interest income will remain stagnant or might reduce due to reduction in interest rate.

It will eventually result in eating up capital or need compromise on life style or/and living standard.

I need to ensure that my retirement for which I was waiting for life, shouldn't convert into a curse due to rising medical cost, inflation,taxes and higher life expectancy.

It is very important while planning the retirement that I earn a return higher than my inflation (not what the government declares) and that too net of taxes so that capital can remain intact rather keep growing.

Retirement planning is not a one-time task but a lifelong process.

So, let's discuss clear cut layout, plan it and ensure that my retirement remains a happy vacation and not only today every day becomes a golden day of my life......

Regards,

Raj Talati

Good times don't last

2024-09-28T12:51:00.000+05:30

Dear Investors,

At ABM Investment we always believe in educating and updating clients by managing risk together with returns. Plese find below a note on what can we expect from markets :

*Good times don’t last*

To give hope, it is commonly said that bad times don’t last. But what is often unsaid is good times *too don’t last.*

Markets have had a phenomenal run. Our wealth is at all time high. Normally when past returns look too good, it is time for muted future returns.

Markets, like life itself, is cyclical. *Neither bull nor bear market lasts forever.*

Prediction is a difficult business and I’m not capable enough or have any divine power to predict. Having said that, I might not know when, I know for sure a deep correction would definitely follow.

But when?

May be next month, next year or next to it.

The longer the bull run goes more deeper would be the correction.

Their could be one of 2 scenario : 1) Time correction : it means muted returns for longer periods and 2) Value correction : A sudden fall from current level and then normal returns going forward.

Always remember markets cannot grow more than their earnings and those earnings cannot be unreasonably valued. There are some segments where earnings seems to be too much stretched.

I can get market direction wrong. But I would always like to err on the side of caution.

I'm optimistic when it comes to growing wealth through Indian stock markets. There is no change in that. India will create immense wealth in the next 25 years, which we can't even imagine....But journey won't be in a straight line up but more of a upward sine wave..

I’m not recommending to sell or moving sideways as no one is talented enough to keep hopping in and out and making profits.

But yes if you have any short term goals it's time to shift that money in debt.

Views published in ET "A portfolio turnover ratio of 2,300: should mutual fund investors be concerned?"

2023-04-15T12:48:00.003+05:30

A portfolio turnover ratio of 2,300: should mutual fund investors be concerned?

https://economictimes.indiatimes.com/mf/analysis/a-portfolio-turnover-ratio-of-2300-should-mutual-fund-investors-be-concerned/articleshow/98265052.cms

*Raj Talati, Certified Financial Planner and partner, ABM Investment*, says “The portfolio turnover ratio is going to be high whenever the market is volatile. Arbitrage takes advantage of that volatile market. Whenever the market is volatile, they get a higher cost of carry, and that is what they try to encash.”........

*Views published in E.T.".*

Views Published in Divya Bhaskar

2023-04-15T12:46:00.001+05:30

Views Published in ET "Mutual-fund-advisors-ask-investors-to-invest-in-small-cap-funds"

2023-04-15T12:41:00.005+05:30

Mutual fund managers and advisors can’t stop talking about the attractive valuation available in the market. They would also talk about how this is the right time to invest in equity mutual funds, especially in small cap funds. ETMutualFunds spoke to around six mutual fund advisors and they were unanimous that it is a great time to invest in stocks and equity mutual funds. They say even their interactions with fund managers give them the impression that everyone is upbeat about the prospects of ..

https://economictimes.indiatimes.com/mf/analysis/mutual-fund-advisors-ask-investors-to-invest-in-small-cap-funds/articleshow/99370897.cms?utm_source=newsletter&utm_medium=email&utm_campaign=Mutualfundnewsletter&type=mutualfund&ncode=f694d14c15808bbd61d6269d81c71150eebd96b423bd48a07b1d400d5f363fe61cb5fc97e9f7ce4a192b53c090908d27172fd2f53a0920880bb3dd886ce625b2586e0c6b653171069382eb7e5f7e3002

My Article published in Economic Times on 30/12/2022 "Year-End Special: Mutual fund categories investors should look out for in 2023"

2023-01-18T18:46:00.000+05:30

https://economictimes.indiatimes.com/mf/analysis/year-end-special-mutual-fund-categories-investors-should-look-out-for-in-2023/articleshow/96613128.cms

Views Published in ET "Passive mutual fund AUM grows by 22% in 6 months on new themes, strategies"

2022-12-07T17:33:00.002+05:30

Passive mutual fund AUM grows by 22% in 6 months on new themes, strategies

Passive investing has been gaining popularity in the last couple of years. However, passive funds have officially made inroads into retail portfolios in 2022 as big mutual fund houses have started to prioritise passive investing and are coming up with varied themes and new investing strategies in the passive space. As a result, the assets managed by the passive funds has sky-rocketed in 2022 so far.

Views published in ET "ELSS funds offer lower returns, underperform benchmarks in one year. What should investors do?"

2022-11-04T10:29:00.003+05:30

Please find full article in below link :

ELSS funds offer lower returns, underperform benchmarks in one year. What should investors do?

My views in ET "Why are mutual fund investors in love with new fund offers (NFOs)?"

2022-04-11T10:48:00.004+05:30

https://economictimes.indiatimes.com/mf/analysis/why-are-mutual-fund-investors-in-love-with-new-fund-offers-nfos/articleshow/87325909.cms

My views published in ET "46 Passive, 26 active fund NFO's collected Rs.52734 crore in 2021"

2022-04-11T10:47:00.001+05:30

46 passive, 26 active fund NFOs collected Rs 52,734 crore in 2021

My views published in ET "Should you invest in the new age sector fund"

2022-04-11T10:45:00.000+05:30

Should you invest in the ‘new age’ sector funds?

Answered Q & A in Economic Times dtd.08/04/2022

2022-04-11T10:41:00.001+05:30

1) https://economictimes.indiatimes.com/mf/analysis/where-should-i-invest-equity-debt-or-hybrid-schemes/articleshow/90719509.cms

2) https://economictimes.indiatimes.com/mf/analysis/can-i-invest-in-kotak-balanced-advantage-fund/articleshow/90677858.cms

3) https://economictimes.indiatimes.com/mf/analysis/why-is-pgim-india-global-equity-opportunity-fund-underperforming/articleshow/90582051.cms

My Article on Franklin Templeton winding up of funds in ET

2021-12-20T18:34:00.001+05:30

How Franklin fiasco happened and what we learnt from it

By Raj Talati, ET CONTRIBUTORSLast Updated: Apr 24, 2021, 11:38 PM IST

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How Franklin fiasco happened and what we learnt fr ..

https://economictimes.indiatimes.com/mf/analysis/how-franklin-fiasco-happened-and-what-we-learnt-from-it/articleshow/82210625.cms

My article on focused funds featured in April outlook money...

2021-04-15T08:28:00.002+05:30

My views published on "Investing in gold" in Economic Times article "Is it a must to have gold in your portfolio"

2020-08-03T14:38:00.001+05:30

My views published on "Investing in gold" in Economic Times article "Is it a must to have gold in your portfolio"

https://m.economictimes.com/mf/analysis/is-it-a-must-to-have-gold-in-your-portfolio/articleshow/77277391.cms

My article in ET on "Corona crisis is teaching millennial investors importance of financial security".

2020-04-15T16:04:00.001+05:30

Click here to read complete article :

https://economictimes.indiatimes.com/mf/analysis/corona-crisis-is-teaching-millennial-investors-the-importance-of-financial-security/articleshow/75152295.cms

FIFA (Foundation of Indian Financial Advisors) Annual event, Mumbai

2020-02-07T18:22:00.001+05:30

Coverage of my presentation in Economic Times...

2019-12-19T12:30:00.001+05:30

https://economictimes.indiatimes.com/mf/analysis/plan-for-your-life-with-whatever-you-have-try-to-increase-investments-with-time/articleshow/72835452.cms

2019-12-11T18:49:00.001+05:30

Invest directly in MF and save commission.

2019-06-15T11:19:00.001+05:30

As always, Mutual fund Sahi hai has come up with another beautiful advertisement promoting direct investment in mutual fund, obviously with a caution "If you have knowledge of MF" and a disclaimer at the end.

It is a kind of ad which promotes to buy a toothpaste which you don't need to get a toothbrush free.

Have you ever thought why Virat Kohli or any of the best players inspite of being best, needs a coach. Does coach teaches them how to play, absolutely not.

Biggest role a coach plays is to guide them through their ups and downs, specially when they are performing well, that is the time they are prone to commit big mistake and hand holding them during lows.

Coach can help to see possibilities which you can't and they will make you stay focused on preparing and executing to meet the goal. They act as the lighthouse which is stationary and secure and provides a beacon to direct when you lose focus.

Investing or selecting a fund to invest in MF is not a big deal, but to stay focused and being rationale is.

That is where advisor comes handy.

A media house promoted platform is also publishing full page advertisement comparing extra money generated in 25 years, if invested directly or through MF distributor.

But the question of comparison arises if you invested for 25 years. Who will ensure, handhold and help you to make that journey of 25 years smooth.

Just seatback for a while and think whatever worth you are at today, was it possible to reach, if you wouldn't had an advisor.

*So don't be "Penny wise pound foolish".*

Just one right advise of advisor is worth much then saving few bucks by experimenting yourself.

Have a great weekend.

Regards,
Raj Talati
www.rajtalati-abminvestment.blogspot.com

No IPL or Politics for us

2019-03-30T13:35:00.001+05:30

The most hot topic of discussion or time-pass these days is IPL and politics.

Normally, a player have limited career. Inspite of being in form they get retired in late 30's or many a times even in mid 20's. Think of a person getting retired in 30's and kind of retirement planning he would require to live atleast 50-60 years.

Atleast for cricketers IPL came as the biggest saviour to boost their career and delay retirement.

Similar, is the case with politicians, they hardly retire. If retirement is enforced even at age of 91 years they make a headline.😜

Most of us are not a cricketer or politician or an actor, but luckily our career graph is much longer.

In the era of fast changing technology and being one of the youngest country, we might not have option to delay our retirement. As our job might become obsolete or will be taken away by an youngster.

*Skip one match of IPL or hot debate of prime time and plan for your retirement corpus judiciously during this working years, we won't have any IPL or political career to support us.*

Regards,
Raj Talati
www.rajtalati-abminvestment.blogspot.com

Storms are inevitable

2019-03-16T10:40:00.001+05:30

Investoshashtra !!!📜📜📜
इनवेस्टोशास्त्र !!!📜📜📜

Summer is next door, when it comes brings sand/dust storm with it. Sandstorms usually arrives suddenly in the form of advancing wall of dust and debris may be kms long and several feet high.

They strike with little warning, but best thing is they don't last long. If not handled properly It may damage our eyes, lungs or even result in big accidents.

Similar is the case with investing. Here are also Storms of uncertainty and volatility keeps striking irrespective of summer or monsoon in India, It will strike even if temperature rises in U.S.,North Korea, Europe,China or middle east.

Whenever, such storm of news flows, instead of being reactive we should look at our needs, goals and ask big question "does it have any implication on my financial future."

If planned properly, you can sail through storm easily and reach financial destination without being hurt avoiding accidents.

So, don't make news to be *basis* of your investment decision.

Have a great weekend.

Regards,
Raj Talati

Lesson I learnt from a Mango farmer

2018-12-08T10:40:00.001+05:30

Investoshashtra !!!📜📜📜
इनवेस्टोशास्त्र !!!📜📜📜

Just after 12-14 months of planting mango plant, if it's well grafted plant flower will start coming during the season, but first thing they do is pluck off the flowers.Next season again flower comes and are again taken off. They keep doing like this for few years. They don't let that flower to bear the fruit.

They will wait for plant to grow because they know if fruit starts coming out of that plant it would never grow to a full-fledged tree. It will not bear as much fruit as it could, if it bears too early.

This is what an investor must learn from farmer's wisdom, don't try to leave too early. This is the time to think about future as well and for bigger goals, liabilities and expenses in life.

So together with living in today, also *"plan for future as _that is the place you are going to spend most of your life._*"

If you start living too early, you might not be able to live a full-fledged life.

We have built habit of spending without planning, *since 2011 India's household savings has fallen from 26.1% to 16.3% of GDP.*

*Most surprising part is, in past consecutive 6 years personal consumption expenditure has outgrown household income. That means we are spending much more than our earnings.*

So this weekend let's learn and implement some of farmer's wisdom for creating a secured and safe future.

Have a rocking weekend.

Regards,
Raj Talati
www.rajtalati-abminvestment.blogspot.com

Was part of Panel discussion for knowledge series on debt conducted by Reliance MF in association with Cafemutual

2018-12-04T19:50:00.001+05:30

Easiest way to evaluate Equities.

2018-11-03T11:04:00.001+05:30

Investoshashtra !!!📜📜📜
इनवेस्टोशास्त्र !!!📜📜📜

Most of the investors during fall in equity markets become sceptical about it and about future of their investments.

I, suggest an easy 3 step decision making process which will be handy to decide whether you should hold on to equities or come out of it.

*1) Just ask yourself how you see our countries _economic_ future as far as income, spending, infrastructure, development, savings, education, power etc etc...*

If you have a conviction it is going to be *better or much better* compared to today. Then, here comes result of first test that you may continue with your equity investments or make fresh allocations as well.

*2) How Much time according to you it will take to see few or all of above changes to happen. If answer is 3,5,10 or 15 years, then here comes answer for your time horizon to invest in equities.*

Let's say you feel there are challenges in short term due political uncertainty, geopolitical issues, crude, Inflation, current account deficit, fiscal deficit, imports, depreciating currency etc... but you are sure that we will be well off or _atleast better_ in 5 years then here comes your horizon to look for equity investing i.e 5 years. If your assumption is 10 years then for you it would be 10 years.

But for few of you who feels nothing will change or economy will go in doldrums, then *please please* stay away from equities.

*3) Now, match your goals which you have tagged to equities with above horizon and stop worrying about day to day market movement.*

Have worry free weekends.

*_Wish you all happy and prosperous Diwali and New year._*

Regards,
Raj Talati
www.rajtalati-abminvestment.blogspot.com

Investoshashtra

Welcome to life's Golden day

Good times don't last

Views published in ET "A portfolio turnover ratio of 2,300: should mutual fund investors be concerned?"

Views Published in Divya Bhaskar

Views Published in ET "Mutual-fund-advisors-ask-investors-to-invest-in-small-cap-funds"

My Article published in Economic Times on 30/12/2022 "Year-End Special: Mutual fund categories investors should look out for in 2023"

Views Published in ET "Passive mutual fund AUM grows by 22% in 6 months on new themes, strategies"

Views published in ET "ELSS funds offer lower returns, underperform benchmarks in one year. What should investors do?"

My views in ET "Why are mutual fund investors in love with new fund offers (NFOs)?"

My views published in ET "46 Passive, 26 active fund NFO's collected Rs.52734 crore in 2021"

My views published in ET "Should you invest in the new age sector fund"

Answered Q & A in Economic Times dtd.08/04/2022

My Article on Franklin Templeton winding up of funds in ET

How Franklin fiasco happened and what we learnt from it

My article on focused funds featured in April outlook money...

My views published on "Investing in gold" in Economic Times article "Is it a must to have gold in your portfolio"

My article in ET on *"Corona crisis is teaching millennial investors importance of financial security".*

FIFA (Foundation of Indian Financial Advisors) Annual event, Mumbai

Coverage of my presentation in Economic Times...

Invest directly in MF and save commission.

No IPL or Politics for us

Storms are inevitable

Lesson I learnt from a Mango farmer

Was part of Panel discussion for knowledge series on debt conducted by Reliance MF in association with Cafemutual

Easiest way to evaluate Equities.

My article in ET on "Corona crisis is teaching millennial investors importance of financial security".