Investment Management
Typically individuals are led to buying high risk products with a hope of high return, especially after markets have peaked out. This approach leads to low returns or losses to investors. As a result, they stay out of capital markets due to the mis-trust created by their sour experiences. A win-win solution to this problem is to move from product-based investing to goal-based investing.
Based on client’s investment preferences, Planner builds a customized portfolio with a mix of instruments such as Mutual Funds, Bonds, Equities, ETFs, Gold, Silver, Small savings / Post office instruments, bank term deposits and overseas assets.
While traditional instruments like bank FDs and post office savings need no expert monitoring, certain other products such as mutual funds need to be continually monitored by an expert due to changing market dynamics. Even within mutual funds, debt funds exhibit a completely different behavior when compared to equity mutual funds.
Given that most investors have about 50-70% of their portfolio in debt instruments, managing them periodically in light of the above debt market dynamics becomes a defacto mandate. The recent overnight closing down of 6 debt funds by Franklin (in Apr’2020) are the exact scenarios where your investment advisor could help you tide over poor fund choices. This is why investment management is an on-going process and requires investors’ portfolio to be managed by an expert continually.
Manikandan Sambath
I am an NRI. Would like to inverts. Could you please provide me some advice