The Futility of Market Timing
The Futility of Market Timing
"The stock market is filled with individuals who know the price of everything, but the value of nothing." - Philip Fisher
This quote by legendary investor Philip Fisher perfectly captures the core dilemma of market timing. Investors often fall into the trap of trying to predict short-term price movements, focusing on knowing when to buy or sell. Yet, in doing so, they often lose sight of the true value of their investments and the long-term principles that lead to success in the markets.
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NJ E-wealth
2025 Investment Resolutions: Building a Stronger Financial Future
2025 Investment Resolutions: Building a Stronger Financial Future
As the New Year is just around the corner, it's the perfect time to leave behind the setbacks of the past year and start fresh with a clean slate. While most people set resolutions to lose weight or kick bad habits, the New Year can also be a great time to refresh and re-energize your financial strategy. Whether you're aiming to build more wealth, diversify your portfolio, or simply make smarter decisions, 2025 can be the year you take your investments to the next level. So, why not add "financial discipline" to your list of New Year's resolutions? Here's how to make 2025 your most successful year yet as an investor.
These days, impulsive spending is more common than ever. With technology putting vast online stores at our fingertips, buying that trendy outfit you spotted on your phone is just a few clicks away. When we buy these small things, we do not think much but each small purchase can quickly add up, leaving us wondering where our money went. So, one of your key resolutions this year should be to regain control over your spending. Prioritize your needs over wants and find areas where you can trim the fat. That said, this doesn't mean you need to completely cut out spending on things you enjoy. The key is balance. If you make too many sacrifices, it could affect your overall happiness, so be mindful of your spending without compromising the joys of life.
Adopting a consistent and systematic approach to investing is key to building a solid foundation for your financial needs. One effective way to do this is by setting up a Systematic Investment Plan (SIP), automatically investing a fixed amount at regular intervals. This strategy not only helps you stay disciplined but also smooths out the impact of market fluctuations by averaging the cost of your investments over time.
Benjamin Franklin famously said, "An investment in knowledge pays the best interest." Investing time in enhancing your financial knowledge can bring immense long-term rewards. With the ever-changing financial landscape, staying updated on market trends, investment opportunities, and regulatory shifts allows you to make more informed decisions. Commit to improving your financial literacy by setting aside time to read finance articles, listen to podcasts, or watch educational videos. Start with a weekly habit and gradually make it a daily practice. The more you understand financial principles and stay informed, the more confident and empowered you'll become in managing your money and making smarter financial choices.
It might seem like a small step, but budgeting can have a major impact on your financial stability. Start by tracking both your income and expenses. To gain a clearer picture of where your money is going, break your expenses into two categories: Essential and Non-essential. Essential expenses include the "needs"-things you can't live without, such as rent or mortgage payments, utilities, and groceries. Non-essential expenses are your "wants"-spending on luxuries, hobbies, and entertainment. By categorizing your spending, you'll be able to pinpoint areas where you can cut back and reallocate that money to savings or investments.
Don't let unexpected expenses derail your financial goals. Building an emergency fund can provide a crucial safety net. It can help you weather unexpected financial storms, such as job loss, medical emergencies, or home repairs. Aim to save 3-6 months' worth of living expenses. Setting aside a portion of your income regularly not only gives you peace of mind but also prevents you from relying on credit cards or loans during tough times.
Insurance is a crucial component of financial planning, safeguarding your wealth and ensuring the security of your loved ones. As the new year begins, it's the perfect time to review your insurance policies and make sure your coverage is adequate and aligned with any recent life changes. For instance, if you've switched jobs, gotten married, or had children, it may be necessary to increase your coverage to reflect these changes. A common financial mistake many people make is being underinsured. For your term insurance, aim for a sum assured that is at least 8-10 times your annual income, factoring in the needs of your dependents and any outstanding loan obligations. Additionally, it's vital to have health insurance coverage for both yourself and your family to cope with rising healthcare costs.
Need mapping is a powerful technique for visualizing and organizing your needs or objectives. It provides clarity, structure, and direction, helping you break down your aspirations into actionable steps. Start by clearly defining your needs. Once you have your needs outlined, break them down into smaller, manageable steps. Assign realistic deadlines to each step or milestone. This helps create a sense of urgency and motivates you to stay on track.
One of the most important resolutions any investor can make is to review their investment portfolio. This includes assessing the asset allocation to ensure it is aligned with your current risk tolerance, financial needs, and market conditions. If you haven't reviewed your portfolio in a while, you may be overexposed to certain sectors or underexposed to others. One important strategy to consider is SIP (Systematic Investment Plan) Top-Up, which allows you to gradually increase your monthly investment in mutual funds. As your income increases or you reach new milestones in your career or personal life, it's important to increase your SIP contributions accordingly. This ensures your portfolio grows in line with your financial aspirations and inflation.
Emotional decision-making is one of the biggest obstacles to successful investing. The start of a new year is a great time to reset your mindset and make a resolution to avoid knee-jerk reactions to market volatility. Never invest in something you don't fully understand, and avoid basing your investment decisions on celebrity endorsements or flashy online promotions. Always ensure that any investment aligns with your financial objectives. Keep in mind that not every opportunity suits everyone. Stay committed to your strategy, trust the research you've done, and remain disciplined, even in the face of market fluctuations. In case of any doubts, seek the guidance of a financial expert.
Investing is a journey, not a destination. By making thoughtful resolutions and taking proactive steps toward smarter investing, you can position yourself for financial growth and success in 2025. Remember, the key to success is consistency, discipline, and the patience to ride out market fluctuations. Let's toast to a prosperous year ahead for your investments!
NJ E-wealth
Protect Your Vehicle with the Right Insurance
Protect Your Vehicle with the Right Insurance
Driving a vehicle comes with inherent risks, from minor fender benders to catastrophic collisions.

Accidents can result in significant financial burdens, including vehicle repairs, and legal liabilities. Motor insurance acts as a safety net, providing financial protection against these unforeseen events.
Motor insurance gives protection to the owner of the vehicle against the risk of financial loss caused by the vehicle. The owner can suffer financial loss if:
  • There is damage to his/her vehicle due to natural calamities and man-made calamities or
  • He/she is liable to pay for any third-party liability.
The owner of the vehicle is legally liable to pay for any injury or damages caused to the third party by him/her while using his/her vehicle. In India, it is mandatory to have third party insurance.

Driving a motor vehicle without valid insurance is a punishable offence as per the Indian Motor Vehicles Act, 1988.
This includes sedans, hatchbacks, SUVs, and other vehicles used for personal purposes.
This encompasses motorcycles, scooters, and mopeds.
This category is broad and includes trucks, buses, taxis, etc.
Third-party bodily injury and/or accidental death: This covers any injuries or fatalities caused to another person due to an accident involving your vehicle.

Third-party property damage: This covers any damage caused to another person's property, such as their vehicle, building, or other assets, as a result of an accident involving your vehicle.
  • Loss or damage to the vehicle caused due to accident, riots, strikes, malicious acts, earthquake, flood, storm, fire, terrorism, lightning, explosion, burglary, theft, land/rock slide, etc.
  • Personal accident cover for owner or driver and other add-on coverages (like zero dep/roadside assistance, etc.)
  • Theft of vehicle, etc.
  • Damage caused due to general ageing, wear & tear;
  • Damage caused due to Mechanical or Electrical Breakdown;
  • Damage caused by a person under influence of alcohol, drugs and any other intoxicating substance;
  • Damage caused by a person driving without a valid driving license;
  • Loss or damage outside India;
  • Damage caused by the vehicle used for unlawful purposes.
It is the maximum sum assured given by the insurer in case of theft or total loss. We can also say that IDV is the current market value of the vehicle. If the vehicle suffers a total loss, IDV is the compensation that the insurer will provide to the policyholder. As the vehicle ages, the IDV also reduces.
Cubic capacity or cc is the measurement of the size of the vehicle’s engine. Usually, higher the cubic capacity, higher will be the premium (i.e. vehicles with higher engine capacity require a higher premium to be paid). Third-Party Liability premium is fixed as per the vehicle's cubic capacity.
A vehicle registered in zone A will have a higher premium than the vehicle registered in zone B. Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Mumbai, New Delhi, and Pune fall in zone A, and vehicles in these cities are considered more vulnerable to theft and accident. The rest of India falls into zone B.
In order to extend the cover of car insurance, it is advisable to opt for the add-on. An additional premium is charged for every add-on opted. Examples of add-on are Zero Depreciation, Roadside Assistance, Engine Protect, etc.
When a claim is made, depreciation is calculated on the vehicle parts and the claim is paid accordingly. By opting for zero depreciation, the entire amount of the part is paid without depreciating its value. For example, let us assume that the bumper of your car is damaged. The cost to replace it with the new bumper is Rs. 10000. The age of the car is 2 years old. If we add a 30% depreciation, then the insurance company will pay you only Rs. 7000 as the insurance claim. But if a Zero depreciation add-on has opted, then the entire amount of the bumper will be paid.
Selecting the right motor insurance policy requires careful consideration. By understanding the importance of motor insurance and choosing the right policy, you can safeguard yourself and your vehicle from potential financial risks and drive with peace of mind.
loans
Customer process mandate at the time of loan application for EMI Collection. A mandate facilitates the seamless deduction of the EMI from the customer's bank account during the tenure of the loan. Approval of the mandate is necessary. Post disbursement, a few of our customers do not provide valid mandates even after their mandates get rejected by their bank.

We have therefore made the following changes with effect from 1st August 2023:

Delayed Mandate Registration Charges: Customers whose loans have been disbursed post 1st August 2023 and where we do not have a registered Mandate at the time of the presentation of their 2nd EMI, would be liable to pay a Delayed Mandate Registration Charge amounting to Rs 200 + GST on every such EMI due date.
This charge is payable even if the customer pays his EMI in advance of the EMI date. 
Clause pertaining to Delayed Mandate Registration Charges has been included in the Master Terms and Conditions e-signed by the customer at the time of availing the loan.

We are not intending to earn any large fee by levying the above charges associated with customers with unregistered mandates. We are better off if all mandates are registered. We advise customers to submit registered mandates with us at the earliest.
Fund Manager INTERVIEW
patner Interview
Mr. Harsha Upadhyaya
Chief Investment Officer - Equity, Kotak Mahindra Asset Management Company Limited
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Prabhat Tripathi (ARN-160073)
AMFI REGISTERED MUTUAL FUND DISTRIBUTOR

Prabhat Tripathi
  • Financial Assessment
  • Retirement Assessment
  • Child Future Assessment
  • Portfolio Review
  • NRI INVESTMENTS
  • mutual fund : debt/equity/elss
  • insurance : general/health/life
  • realty : plots/villas/flats
  • portfolio management services (pms)
  • fixed deposit : company fixed deposit
  • bonds : tax saving bonds

"We have taken due care and caution in compilation of this E Newsletter. The information has been obtained from various reliable sources. However it does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions of the results obtained from the use of such information. Investors should seek proper financial advise regarding the appropriateness of investing in any of the schemes stated, discussed or recommended in this newsletter and should realise that the statements regarding future prospects December or December not realise. Mutual fund investments are subject to market risks. Please read the offer document carefully before investing. Past performance is for indicative purpose only and is not necessarily a guide to the future performance."

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