How to benefit the most from a Mutual Fund Distributor?
How to benefit the most from a Mutual Fund Distributor?
We all make efforts to plan our investments, yet we often get dismayed if our expectations aren't met. We may encounter nervousness and loss aversion bias in weaker markets, and overconfidence bias in stronger markets. Driven by emotions, we may make mistakes in volatile markets. In fact, emotions and personal biases are very commonly found in our investment behaviour. Many times, we aren't even very knowledgeable and skilled enough to make the right decisions. All these factors may severely impact our financial well-being and overall journey to an extent. What is a way out for such investors?
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Here are a few of ways how investors might benefit the most from a MF distributor:
It's beneficial to have an awareness of the services your mutual fund distributor offers. Also make an effort to be explicit about what you are expecting from the MF distributor. This can be in terms of investments, portfolio management, level of involvement, etc. The conversion will also be helpful for the MF distributor to showcase what all he can do and the services he is offering and his style of functioning. Having clarity of what you can expect, the deliverables and what problems can the MF distributor help you solve, can lay a strong foundation on your relationship and can reduce the chances of getting dissatisfied in future.
A MF distributor relies on the information that you share - be it of your mutual fund portfolio or your needs / financial objectives. Sharing this information will enable him / her to customize his recommendations and guidance based on your risk profile and financial background. Sharing your portfolio information would also help the MF distributor to assess your real asset allocation and product level, AMC, scheme-level exposure and accordingly recommend a suitable mutual fund portfolio.
A list of clearly laying out financial objectives or needs is at the heart of any investment planning. Defining your needs, making the required investment and mapping to these and then regularly tracking the progress of the same and filling gaps, if any, is basically what investments is all about. As an investor, we can seek active help from our MF distributor in this process and can rely on him to get recommended on mutual fund portfolios to stay on track of our needs. A MF distributor can help ease the entire process for you.
Make sure that you stay connected and have periodic meetings with your MF distributor, say at least once a year. The conversation points can be drawn to understand the progress of your financial objectives / needs and the performance of your portfolio. These meetings offer a chance to also discuss any changes in investing plans, or financial objectives. You may also ask questions to better comprehend the investment decisions being made.
If you make any big financial decisions or experience any changes in your financial condition that could affect your risk profile and your investments, do let your distributor know about the same. This covers any changes in current income or expenses as well as life events like marriage, having a child, changing jobs, etc. By consulting with your MFD, you can make sure that your financial objectives / needs and investing strategy gets updated as well in line with your evolving requirements.
Investors can also have the opportunity to learn and gain further insights on asset classes, investments, products and personal finance in general with the help of the MF distributor. With an open minded approach, one can ask relevant questions, have more meaningful conversations with your MF distributor, and make sound decisions. Your understanding of the suggestions offered by your distributor will improve if you educate yourself on the financial concepts and investment possibilities.
There is substantial value a MF distributor brings to the table over years in your financial journey that you can have. There can be no value for putting into things like emotional handholding, avoiding mistakes, influencing and building your investment approach, shaping your financial habits, improving your investment pattern, achieving your financial needs, and the continued guidance in decision making which a MF distributor can actively contribute towards. It is actually upon us to explore and make sure that we realise the possibilities and benefit the most of our MF distributors. Mutual trust, respect, confidence and constant communication are the key elements that bind our relationship with our mutual fund distributor.
NJ E-wealth
SIP Stoppage - Reasons and the Response
SIP Stoppage - Reasons and the Response
Systematic investment plans (SIPs), today, are one of the most popular ways to invest in mutual funds. It is often used for making recurring investments in mutual fund schemes for a predetermined amount. By making disciplined SIP investments over the long-term, and taking advantage of rupee-cost averaging, an investor can accumulate significant wealth and achieve his financial objectives. However, it is also observed that people often have faith in their SIP investments. We also see a good number of investors stopping their SIPs well before time, due to multiple reasons.
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We all have a fear of the market going negative. But, the real test comes when the market actually falls. Investors hit the panic button when their portfolio starts to turn red or remains red for a longer period of time. Further, if the market keeps on falling or pops out as a headline to fall more in the near future, this fear of losing more, influences some investors to stop their SIPs. The reason given is that markets are not good currently and investments /SIP can be postponed till the time the markets start looking good.
Response - Make volatility is your companion, not your enemy. "Rupee Cost Averaging" is the method to use in response to that. This is a benefit of SIP, with a long investment horizon, works in the favour of investors, especially during market volatility and downturns. Thus, the unfavourable market conditions could be the ideal period of making fresh investments and SIPs can make this happen automatically, with discipline and without your active involvement in market timing. By discontinuing your SIPs, thinking that the market conditions are not good, the investor is in fact losing out on many things. Thus, a proper understanding of how SIP and rupee-cost-averaging works, can give clarity and conviction to investors.
Generally, some investors who have only seen markets moving upwards tend to think that you should get good returns after starting SIPs in a short span of time. They are impatient and do not give adequate time to schemes to perform. Often, the basis on which investors select the scheme is the past performance of the scheme. People get influenced by ratings available publicly and make investments chasing the highest rated schemes. Whereas, when the scheme starts to perform unfavourably in the short-term, they usually stop their SIPs, saying that the scheme is not performing well and then again look out for the top performing and ranker scheme.
Response - Unfortunately, with this approach of chasing top performing or ranking schemes, investors lose their valuable time and money in this investment approach. We should keep in mind that past performance of the schemes may or may not repeat in future. We have very often seen that the top performing schemes are likely underperform after some time.
As investors, we should have patience and understand that some schemes may take time to perform. We should be satisfied if our scheme is a consistent performer over the long-term and this is possible with proper investment process, fund house credibility, the team managing the scheme and so on. We also have to accept that short-term performance is not indicative of long-term performance. If the scheme is good on the parameters said, instead of discontinuing our SIPs due to poor scheme performance in the short term, we can think about giving it more time.
Mutual fund investments have liquidity and most investors tend to dip into their savings whenever a need arises. Further, whenever there is a squeeze on the monthly budget and finances or a crisis, the SIP investment is the first to take the hit since it is not deemed to be as crucial as the rest of the things, even including discretionary spendings. Shortage or inadequate funds is one of the common reasons for people stopping their SIPs. It is easy and there seems to be no immediate or visible downside for doing so.
Response - Often people do not keep savings on the same pedestal as the rest of the things. Even when you can easily accommodate all expenses, SIPs are stopped at the first pretext of funds being not available. Rarely do we find that people try to cut down on avoidable expenses to make space for SIP savings. As we all know, mutual fund investments are often treated as the first source of funds, whenever we want to make purchases or spend money. All this comes at the cost of compromising our long-term financial objectives. However, in genuine emergency crises or cases, dipping savings can be an exception but not a rule to follow in each of such cases. Therefore, stopping and/or delaying your SIPs only means that at a certain date in future, you will have lost much more than what you are using today due to the power of compounding over the long-term. The alternative to this is to build and maintain an emergency fund or seek loan against your mutual fund investments, if required, while continuing with your ongoing SIPs.
We all are in a myth that stopping SIP won't make a difference in our investments. Where people typically put a lot of effort into starting a SIP, they might give up on the same very easily. Investors only recognise the value of SIP perseverance when their future financial needs are either postponed or become unreasonable given their required time and budget. We would urge investors to think about the reasons and the responses to explore possibilities before taking any of such decisions. Also feel free to talk and consult your mutual fund distributor for better guidance before stopping your SIPs.
NJ E-wealth
Port Your Health Policy - Choose Wisely
Port Your Health Policy - Choose Wisely
Are you unhappy with your current health insurance company or plan? Do you find other health insurance plans to offer a comprehensive scope of coverage or is cost-effective or have lower or minimal coverage restrictions and even have a simpler claim settlement process? Then portability can be a good option for you.
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The term "portability" describes the ease with which something may be carried, moved, or relocated from one place to another. In the context of health insurance, the ability of policyholders to switch from one health insurance provider to another without losing the benefits accumulated under their present policy is referred to as portability. It enables people to change insurance companies while keeping their policy's waiting periods, pre-existing disease coverage, and other benefits in place. The Insurance Regulatory and Development Authority of India (IRDAI) launched health insurance portability in India in 2011. By allowing people the freedom to select a different insurer that better meets their needs, it is aimed to empower policyholders and encourage competition among health insurance providers.
After shortly outlining portability, let's move on to the most frequently asked question, "Why portability is important?"
With portability, when a policyholder changes to a new health insurance provider, they do not forfeit any accrued renewal benefits. However, there are numerous concerns with the decision to switch health insurance providers. The answer is simple; with increased competition among service providers, insurers may be hesitant to keep their current insurance due to reasons including existing insurer's services are insufficient, they charge excessive premiums, and their products have sub-limits. On top of that, an insured person's needs may vary during the course of his policy schedule, and portability can be the ideal way to accommodate these new needs. While porting would enable people to change to a health insurance plan with improved coverage, such as higher sum insured at lower premiums, additional perks, or coverage for certain treatments.
In order to better meet their healthcare needs and address gaps in their current coverage, policyholders may enhance their coverage. Before making the transfer from their existing health insurance to a new one, it is crucial that you give your insurance advisor all pertinent information, such as any pre-existing / present illnesses / major accidents, recent insurance proposal / claim denials, or illnesses that have been cured. Make sure that the new plan will cover any pre-existing medical conditions which you have, without any waiting periods or restrictions if you have any. Although keep in mind that portability is only feasible at the time of policy renewal.
  1. To begin the procedure, you may need to fill out the IRDA portability form. It should be noted that a policyholder might seek portability when the insurance is up for renewal. You must contact the insurance company where you want to move your current health insurance coverage. The new insurer will give you two documents: a portability form and a proposal form. They may also send information on the company's numerous health insurance policies.
  2. Once you have submitted the relevant documents to your new insurance provider, they will contact your old insurer and obtain your medical records and other pertinent information. They may also request your claim history. When your old insurer receives such a request, it is obligated to share this information.
  3. When the new insurer receives all of the necessary information, they will decide whether or not to provide you with a health insurance policy. This is known as policy underwriting. An underwriter will examine your data and consider your risk profile before deciding whether or not to provide you with health insurance. If your new insurance provider decides to insure you, they must underwrite your policy within 15 days. If you miss this deadline, you are assumed to be insured by the new insurance company.
While IRDAI gave all policyholders the ability to request portability, it also granted health insurance providers a right to refuse these requests. As a result, the underwriter examines each request for portability just like a new request.
When a health insurance provider receives a request for portability, the underwriter evaluates the risk exposure to determine the premium required to be charged. If the insurer determines that the plan is not favourable, it may be rejected. In that situation, the policyholder won't have any choice but to keep his or her existing insurance policy.
By carefully considering all the factors, the policyholder can make informed decisions on switching the health policy, and ensuring that the new policy meets his present requirements.
Dwight D. Eisenhower rightly said that "A people that values its privileges above their principles soon loses both." Thus, if individuals prioritize their privileges (e.g., seeking the lowest premium or most extensive coverage) above their principles (e.g., equitable access, affordability for all, continuity of care), they may compromise the very principles that underpin the purpose of their health insurance cover. Therefore, the quote serves as a reminder that it is crucial to prioritize and uphold the common need of your health insurance policy, rather than simply pursuing short-term/ certain influencing privileges, to ensure a robust and equitable healthcare system for yourself.
loans

Ans.

  1. E-mandate (Net banking / Debit card)
  2. Aadhar based Mandate
  3. Physical Scan Mandate

Ans. Mandate registration in LAS Term Loan is used to pay the principal and interest amount which can be debited from the client's bank account directly. Please find below mandate registration TAT:

Mode Approval/Rejection TAT
E-Mandate T+2 working days
Physical Mandate T+10 working days

*Note: T = Mandate sent to bank date.
Fund Manager INTERVIEW
patner Interview
Mr. Janakiraman Rengaraju Senior Vice President & Portfolio Manager. Franklin Templeton India
Mr. Janakiraman Rengaraju is Vice President & Portfolio Manager - Equities for Franklin Templeton India AMC Ltd. Mr. Rengaraju manages Franklin India Prima Fund, Franklin India Opportunities Fund and Franklin India Smaller Companies Fund. He is co-portfolio manager for Franklin India Equity Advantage Fund, Franklin India Equity Fund and Franklin India Taxshield.
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Yash Shantaram Khanolkar (ARN-250374)
AMFI REGISTERED MUTUAL FUND DISTRIBUTOR

Yash Khanolkar
  • 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 July or July 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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