How Can You Be A Successful Investor?
How Can You Be A Successful Investor?
Investing is a risk-versus-reward game. Where some have made millions, many more have lost. What are the characteristics that differentiate a successful investor? Successful and exceptional investors, such as Warren Buffet, Benjamin Graham, and Rakesh Jhunjhunwala, exhibit critical character traits that set them apart from the crowd. Have you ever thought about what all great and successful investors share in common? What distinguishing characteristics do these investors possess that you do not?
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Patience is an essential trait of successful investors. When they decide to invest, they do so by keeping the long-term picture in mind rather than making quick gains. Some of the investments may not perform at all for quite some time but if one is confident in the fundamentals, sooner or later, results will follow. In the long term, the prices will eventually follow and catch up with the profits. Even the corollary is true. We get tempted for a very high-performing stock where the fundamentals may not be that strong. There is a test here too. However, many of us fail the test of patience. All we need is some patience and the ability to remain calm in the face of turbulence.
The road to success in investments is paved and simple, yet difficult to follow. One of the key differentiating trait is consistency in what you are doing. All successful investors have their own science which they have practised over and over again and perfected over the years so that it now looks more like an art. One has to be committed and stay focused to practice your approach towards investments. Keep learning and improving your investment approach. If you are investing in say mutual funds, you may have saved a lot of time and effort in analysing stocks. However, still there is a need for you to be passionate about and focused on wealth creation and to follow your investment objectives /asset allocation regularly, with discipline.
Sentiments are always present in the stock market. The stronger they are, the sharper is the market movement moves. Sentiments can cause a financial storm in the investment world. . That is why the risk of getting sucked into the market 'mood' is as dangerous as it is real. Beware of the two most powerful emotions in the market - Fear and Greed. Successful investors though can identify and differentiate the real from the hype and see beyond these emotions. They tend to get very active at such times since the market throws up many opportunities during this time and they act decisively during such irrational times and make the most of their investments. To be a successful investor, you must be emotionally neutral when it comes to winning and losing what. Winning and losing are just part of the game.
There are two way of dealing with volatility. One, the trader's mindset which drives people to react to the volatility. Second, is the investor's mindset where you avoid the volatility altogether. Many investors become concerned during volatile times and begin to question their long-term investment strategies. This is especially true for new investors. Experienced investors know that market volatility is unavoidable and designed to move up and down in the short term. More importantly, it is extremely difficult to time the market. Riding the volatility waves while staying afloat without getting wet is what would differentiate the successful investors from the novice ones.
A speculation is a guess or a hope of something happening which is not well researched. Such speculations can be in form of tips from friends and from so called social media experts which we find floating around almost everyday. This should be taken with extra bit of caution as it can possibly be to lure unknowing investors. The opposite of speculation would be well-researched, future projections based on sound fundamentals and good assumptions. One can't really replace speculation with such a well-researched projections. Successful investors do not engage in speculation and see it more like a gamble with a known outcome with time. Some novice investors may get excitement and fun in speculating but, it is a sure way of losing both peace of mind and money.
Good investors understand that it's better to ask a few additional questions than to regret or be locked into a bad investment. They are inquisitive and ensure that they understand all of the "fine print" of any investment product or asset. Any financial /investment product has its' own positive and negative factors. Should it meet your expectations, needs, risk appetite, liquidity needs and costs, is something you must question. Before making any decision, successful investors ask questions and consult with unbiased sources. To put it another way, they educate themselves and invest only in products which they are very familiar with.
Good investors keep themselves updated just enough on the major economic, geopolitical undercurrents that may impact the markets on the long run. There is no need to track daily movements of markets and listen to every little noise happening on a daily basis in the market. With experience, successful investors learn to pick up only the meaning information and avoid the rest as just noise. With information so easily available and in such a huge quantum, this is an essential skill we should master.
Becoming a successful investor takes time, patience, efforts and learning. There is no shortcut to success but knowing the mindset and the characteristics of successful investors can surely help us in our journey. Surely, even we can and be as successful as our investment gurus, at least by our own standards.
NJ E-wealth
Teaching Growing Children All About Money
Teaching Growing Children All About Money
Are you the one who used piggy banks in your childhood to store all the money gifted to you by your relatives? Do you also remember getting happy at unexpected big amount of money you managed to save?
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In many ways, the pocket money to children is not different than the salary you earn. This simple understanding opens up to a lot of things which can be done with the pocket money. Pocket money is often the first taste of financial responsibility for many people. Giving your child a set amount of money on a regular basis, as well as the responsibility of paying for something they want, allows them to good money management habit. With pocket money, we can imbibe the principles of budgeting, savings, planning for big expenses, being disciplined & responsible, and so on. So the next time you think of giving pocket money, also think of so much more you can give along with just the money.
Understanding the value of money is crucial during the growing years. With most parents affluent today, they tend to pamper their child and fulfil most of their demands. Doing so, the child may not value money and the effort you have done to earn the same. We can always seek participation of children while planning for household expenses /monthly budgets for the family. You can also encourage them to do some household activities or tasks to earn some extra money besides the pocket money. How about asking them to properly wash your car say once a week and show how much the regular car washer is earning? With digital skills, you can also reward them for completing courses or doing some digital activities on your behalf. Making them understand the value of money will surely impact a lot of other money related behaviour.
There is no limit to how much children can spend today. From entertainment to dining out, to travel, to electronics, and so on. Monitoring their spending and asking them to limit their expenditure to a set budget is crucial here. As parents, we should also learn to say 'No' to a lot of unreasonable demands which children place on us. We can also help our children to learn from our own habits and money behaviour while planning our own /household expenses. So the next time you decide to a buy an phone, why not just have a random talk with your child and ask for inputs? If we show discipline in spending ourselves, the children will surely learn a lot more than preaching them something.
Handling and dealing with money is another great skill to have. You can ask your children to go and open bank account for themselves. Transfer a bit of money to the bank account and let them manage /handle their money digitally. You may also give them pre-loaded money cards instead of hard cash. Ask them to track their expenses online with budget apps. Having a bank account and letting your children manage it on their own is a real time skill required to be learnt soon.
Seeing money grow gives a very different level of learning to children. Experience is the best teacher and we should expose our growing children to some real investment /wealth management experience. Share with them how and where you are investing and let them listen to your discussions with financial advisor /MF distributor. It would be the best if we can actually open an online mutual fund investment account for your children along with a bank account and ask them to invest regularly with SIPs. Let them make some saving and investment decisions themselves and let them learn. Ask them to present and discuss with you on their investment choices and performance from time to time. Real-time experience on savings can really make a huge difference to their attitude towards money.
Last but not the least, with the benefits of digital world, there is a dark side where all types of online frauds and scams are prevalent. A lot of children get addicted to games and there have been cases of spending absurd amounts on such online games. Further, with constant online exposure, children also need to be learn on how to be safe online not just with money but also with privacy and a lot of other things which are very risky. Teach them of all different types and ways of fraud, cheating, scams happening online. Digital security is something that needs to be put on the top of your list as parents of growing children.
As parents, we wish the best for our children and wish them to build skills, knowledge and behaviour that are essential to be successful in life. We do not wish our children to be attracted to money or materialistic life but a the same time, we should teach them how to smartly use money as a limited resource so that it does not become a problem in life. Learning the virtues of contentment, happiness, sharing, caring, self-reliance, discipline and delayed gratification are the true lessons we should teach our children beyond just money management skills. We are sure, with little efforts and planning, your children will surely be thankful to you for life for what you teach them during these growing years.
NJ E-wealth
Why be careful while filling out Insurance Proposal Form?
Why be careful while filling out Insurance Proposal Form?
Insurance is an agreement between the insurer and the insured (policyholder). This agreement is based on the information the insured provides in the proposal form, making it the most important part of the entire insurance policy. An insurance company offers a policy on the basis of a proposal form and other information related to the insured. It seeks all the relevant information from the policyholder in order to underwrite the risk.
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Many people become casual while filling up the form and do not provide the correct details related to age, contact details, income, qualification, etc. Mentioning the correct details is extremely important.
The insured must provide the correct address, contact number and e-mail id because the insurer will contact you using these details when a claim needs to be settled - the address is required for underwriting as well as any communication. Crores of claims and maturity amounts remain unpaid as insurers are unable to reach policyholders at the numbers and addresses provided by them. Further, the age, height, weight, health status, family medical background, income, occupation, qualification, etc; of the proposer/insured members have a significant impact on the decision of the insurance underwriter. It could result in the rejection of the proposal or a hike in the rate of premium.
Many times, people do not disclose their current health condition in the proposal form so as to obtain better coverage for a lower premium or to avoid the waiting period or rejection. However, the entire medical history should be mentioned in the medical history/questionnaire section. While making the claim, if it is found that the medical history does not match, the claim might get rejected and/or the policy may be cancelled ab-initio. For example, Mr. Raj had diabetes for a long time but did not mention it in the form. However, when he was admitted to the hospital for treatment of heart disease, the fact that he had diabetes was revealed and as a result of which the entire medical claim got rejected. He had to bear all of the medical expenses himself because he did not mention diabetes in the proposal form while buying the policy.
Insured member must disclose his/her habits regarding the consumption of alcohol, tobacco and other drugs. We are all aware that addictive substances such as tobacco and alcohol have a negative impact on health. So, if you are a tobacco user or alcohol consumer, insurers will charge more. The premium amount charged to such individuals is determined by their frequency, quantity consumed and type of addiction.
It is essential to mention all the policies taken from the same insurer as well as other insurers.. If you already have an insurance policy, the insurer will offer only the balance of the cover, that is, max cover allowed as per eligibility & underwriting guidelines - sum assured of the existing cover. Non-disclosure or improper disclosure of existing policies may result in proposal cancellation. In fact, if the insurer comes to know about a pre-held policy that was not declared at proposal stage, it can reject the claim and/or cancel policy on the basis of non-disclosure of material facts.
People often do not mention the nature of the job or service they are involved in. Occupation is a parameter used to assess accident risk and wellness. For example, if you work in aviation, the risk to your life will be higher and the declaration needs to be done to the insurer. So, the nature of work is critical for risk assessment and the premium will depend on that information. Individuals with hazardous occupations or dangerous hobbies like paragliding, parasailing, rock climbing, etc. are charged more. The insurer can even refuse them coverage.
It is important to fill the nominee details in the proposal form in order to make sure that the benefit reaches the right hands.
From the above points, it is clear just how important the proposal form is. Hence, it is paramount that those buying an insurance policy should pay close attention while filling their details in this important document, failure of which may lead to adverse consequences such as rejection of claim.
In case you have any questions regarding the understanding of the proposal form, it is important to get it clarified from your insurer/insurance advisor. To let the underwriter assess your risk appropriately, it is imperative that you furnish the right appropriate details. It is better to be safe than sorry at the time of filing a claim.
loans

Ans. The Borrower shall be required to maintain double the margin of utilized funds at all times.

As per RBI & SEBI guidelines, Client has to regularize the account by paying a shortfall amount or by pledging double securities of shortfall within 7 days.

Mail communication is done to the client by Bajaj team from the 1st day of the margin shortfall. NJ Capital also sends mails to partners, clients and sales team.

Client has to regularize his account on or before the date given by Bajaj.

If Client does not regularize the account & communicate to Bajaj then they will sell double securities to recover the margin shortfall and regularize the Account.

Clients can check the updated margin shortfall amount from the IVR report.

If the market goes down during the repayment date then the client has to pay a higher shortfall amount reflecting in IVR on the due date.

Fund Manager INTERVIEW
patner Interview
Mr. Mahesh Patil Chief Investment Officer, Aditya Birla Sun Life AMC Limited
Mr. Mahesh Patil is the Chief Investment Officer (CIO) of Aditya Birla Sun Life AMC Limited. As the CIO Mahesh oversees over INR 3 lakh crore of assets under management. With over thirty years of rich experience in fund and investment management, Mahesh leads the entire investment team, comprising fund managers and analysts. He personally manages funds such as Aditya Birla Sun Life Frontline Equity, Aditya Birla Sun Life Multi-Cap Fund, and Aditya Birla Sun Life Focused Equity.
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"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 may or may 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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