How I Talk to My Kids About Money....

Kids can understand more than we think they can about money. A lot more. I know it, because I have one sons, ages 14, who aren’t content to just have savings accounts at the bank. He also have his own Postal Recurring Account. And, yes – he is contributing to those accounts. Aggressively.

Here’s how it happened. I grew up in a home where we discuss finances very often. We have money to invest, and it's a topic my parents understood particularly well as we all are in to financial business. When my wife and I had children, we agreed we would take a different route. We would treat our son like adults when it came to finances, to whatever degree he could understand the concepts involved.

Involving children in financial discussions from an early age helps teach them to true value of money.

A Weekly Allowance

We started, naturally, with an allowance, which we based upon his age. So when he were six years old, he could get Rs.60.00 a week, when he were eight years old, he could get Rs.80.00 a week, etc. Notice that I said “could get.” It wasn’t guaranteed. he had responsibilities to perform for that allowance, and failure would result in deductions. Plus, he had to ask for his allowance on Sundays – getting it wasn’t automatic. From this, we wanted to teach him that money had to be earned, and that nothing is a “given” in life: you have to ask for what you want and need.

A Family Discussion

About the time he were six , we began to involve him in Basic accounting with my father. on Every Sunday, and at that time my father discuss our finances in depth. We included him in that dialogue so that he understood in very general terms what my family had invested, where we invested it, and what our decisions were based on.

At first, of course, we kept things very high level for him. But as the years progressed, he started to stay longer during those meetings, asked more questions, and understood more.

A Circle of Trust

When we tell people that our son – as young as they are – have a full and complete understanding of the financial status of the family, they are often shocked. But here’s the key: we have established what we call a “circle of trust” in our family. We made an agreement with him that anything relating to our financial status can never be discussed with anybody outside the family. Otherwise, the trust will be broken and he will never be involved in these conversations again. he understand that, and he respect it.

A Personal Decision

It did not come as a surprise when our sons started to get more involved with own money. He already had savings accounts which we had set up, but upon his request, we set up Postal Recurring account for him as well. Being boy, they are highly competitive … so they are in a never-ending sibling race to see who can save and invest the most money!

An Understanding of Value

Building on the foundation of understanding they had formed by being exposed to financial matters both as a family and as individuals, my sons started asking questions about the real value of money. Not “What does the latest tech toy cost?” but the much larger question: “Why is money valuable?”

Here is our answer: money is valuable because it gives you freedom and flexibility.

That’s it. It doesn’t buy happiness, and it’s not about baubles and gadgets. The real issue isn’t whether you make a salary of four digits, six digits, or eight digits: that doesn’t bring happiness, either. The real value of money is that it gives you the freedom to make your own choices and not to have to do things you don’t want to do, and it gives you the flexibility to do the fun things that you do want to do. So the value of earning and saving is to gain freedom and flexibility.

At 12 and 14, we are now having family dialogues about how to understand risk-return trade-offs, how to balance a portfolio, how to set objectives, how to approach financing their college education, and more. Our end goal is to make sure that once our sons is on his own, he will know the right way to invest so that he is not haphazard, lazy, or foolish in their decisions. With a firm financial foundation, we know our sons will be able to experience freedom and flexibility in life – that is, he can enjoy the real value of money.





-- 

Regards,

Ritesh.Sheth CWM^®

CHARTERED WEALTH MANAGER

              Helping you invest better...  

Allaudin Bldg Shop No 1,Manchubhai Road,Malad East,Mumbai - 400097.
Shop No.9,Param Ratan Bldg,Jakaria Road,Malad West,Mumbai - 400064.
Tel:28891775/28816101/28828756/28823279. CELL:9930444099  www.tejasconsultancy.co.in | E-mail Us: ritesh@tejasconsultancy.co.in

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This emailer is addressed to and intended for the investors of Ritesh Sheth & Tejas Consultancy only and is not spam. You are advised to contact Ritesh Sheth & Tejas Consultancy to clarify any issue that you may have with regards to any information contained in this emailer.The views are personal. Ritesh Sheth & Family or Tejas Consultancy does not guarantee the accuracy, adequacy or completeness of any information in this emailer and is not responsible for any errors or omissions or for results obtained from the use of such information. Ritesh Sheth & Family or Tejas Consultancy does not have any liability to any person on account of the use of information provided herein and the said information is provided on a best effort basis. In case of investments in any of our schemes, please read the offer documents carefully before investing.
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Being smart with your fund picks

Being smart with your fund picks

When making a buy or sell decision on a fund, it is essential to look beyond returns.

When it comes to fund managers and market strategists, this year's hero usually turns into next year's zero.

William Bernstien makes that statement in his book titled The Investor’s Manifesto. Bernstein is an American financial author, theorist and neurologist. His words are worth noting.

Irrespective of whether the decision is to invest or to liquidate, performance often becomes the sole deciding factor – an error that many investors commit unknowingly. While we vociferously advocate that returns remain an important indicator of how a fund has been able to deliver historically across varied market cycles, it is not the only factor. A more holistic approach is needed when evaluating a mutual fund from an investment perspective.

Top performing fund? Don’t live in the past!

Historical returns do provide an insight into what the fund has done in the past, but its predictive powers are definitely limited. A fund’s impressive performance is not guaranteed to be repeated in the future.

It is not without reason that the regulator, the Securities and Exchange Board of India, insists on the disclosure along the lines of: Past performance of the Sponsor/ Mutual Fund/ Investment Manager is not indicative of the future performance of the Scheme(s).

Why?

For one, performance could change if there is a change in the fund manager. It could change for better or for worse. Having said that, in most cases, it is not the issue of a fund manager change. It could simply be plain market dynamics; the stock bets that worked in the past may not work going forward. For instance, if the fund manager was stocking up on value stocks and the market favoured them, it would have worked to his benefit. If growth stocks were on a roll and value stocks were being punished, he would suffer. The stock bets that worked in the past need not work going forward.

Companies that were part of the portfolio and propelled the fund’s overall returns in the past may have either changed significantly in terms of their structure and/or their and ability to generate similar levels of return. In contrast, the constituents of the fund itself could have changed affecting the return profile of the fund.

Hence, while returns can be used as a starting or reference point, taking investment decision solely based on them could lead to financial disaster.

Top performing manager? But for whom?

Fund managers tend to have different styles, investment horizons and philosophies. Investors on the other hand tend to have varying investment goals and risk appetites. Since there is no concept of ‘assured returns’ or a ‘one size fits all’ solution in the mutual funds industry, evaluating a manager’s style and comparing the best ‘fit’ with individual investing preferences becomes essential.

A so-called top performing fund manager may be a disastrous fit for your portfolio. Let’s say he manages his fund in a volatile fashion, and while he delivers admirably, the highs and lows could churn your stomach. In that case, you should be avoiding his fund.

Understanding the styles and the differences across the investing patterns of different fund managers helps gauge the suitability of funds managed by them and prevents investors taking on additional unwarranted risks as part of their portfolio. It also encourages a higher level of investment discipline. Not all strategies are suitable for all investors. For example, large cap funds are typically considered as being lower risk as compared to a mid or small cap fund. You need to check whether the fund falls in the large-cap category, flexi-cap category, or mid-and-small cap category. You would also need to look at other parameters such as concentrated portfolios against highly diversified ones.

Investors need to first assess their requirement and then the fund’s suitability to meet their individual goals.

Don’t ignore costs.

Additional costs and increased fund expenses can eat into the income that an investor really makes. In John Bogle’s words, “The miracle of compounding returns is overwhelmed by the tyranny of compounding costs.” A higher expense ratio will tend to lower investment gains thus nullifying and/or lowering actual earnings. Bogle is an author and founder of the Vanguard Group.

Furthermore, the tax structure in India can have an impact on fixed income funds that are redeemed before the 3-year period, thus making the income from such funds taxable.

An exit load as defined by the fund documents is another factor to consider while redeeming investments. With all these different facets of costs come into play, it becomes important to take into account the actual income vs. the percentage returns that a fund is able to deliver.

In conclusion….

Investors often exit a fund due to its under performance just in time to see its returns take a 360 degree turn. While maintaining a long-term view is important, it is important to understand the reasons for short term aberrations and their possible impact over the long term.

Investment decisions should be based on a combination of fundamental strength backed by quantitative support. Look for consistency of returns and whether or not the fund manager’s style is in sync with the fund’s mandate. And don’t expect a blockbuster performance every year. William Bernstien’s words yet again: Mutual fund manager performance does not persist.

Source: Morningstar india  By Kavitha Krishnan |  02-09-15

let's make money using common sense: Should I use a financial adviser to manage my port...

let's make money using common sense: Should I use a financial adviser to manage my port...: Should I use a financial adviser to manage my portfolio or should I save money by going it alone? - Sunil Mankotia, Banker,Thane A: That...

Should I use a financial adviser to manage my portfolio

Should I use a financial adviser to manage my portfolio or should I save money by going it alone? - Sunil Mankotia, Banker,Thane

A: That depends on how comfortable you are doing it yourself. If you are familiar with the basic concept of asset allocation and you’re comfortable choosing investments, you shouldn’t have any trouble building a low-cost diversified portfolio on your own.

Potential access to important investment news when it is most valuable Professional advice that may help improve your investment results Expert help in determining the best way to allocate your assets A trained and objective professional who can help you avoid panic selling.

Understand your needs and help you formulate long-term investment goals and objectives.

Before making specific recommendations, your advisor should try to gain a whole picture of your past experience, lifestyle and goals, as well as your other investments and current financial situation. When are you planning to retire, for example? Do you have life insurance? Do you own real estate? How secure is your job?

Help you develop realistic expectations by discussing the risks and rewards of each investment.

Every investment choice has its strengths and weaknesses, and you should never feel less than fully informed. When you ask questions, or have doubts, you should expect your financial advisor to answer honestly, and help you develop a strategy that is both realistic and comfortable for you.

Match your goals and objectives with appropriate financial product.

You should expect your advisor to make clear and specific recommendations, and explain the reasons behind them in terms you can understand. Of course, the advisor should be confident and well informed about the management and portfolio strategies of any financial product or mutual funds recommended. Continually monitor your portfolio and help you interpret performance.

Your advisor cannot influence or predict a healthiness of financial product or fund's results. However, he or she should discuss results with you and help you judge your progress. You should feel that you can always ask your advisor, "How am I doing?"

Conduct regular reviews to ensure that your strategy continues to provide optimal results for you.

One of the most valuable services your advisor can provide is to help you "stay on course" with your investment program. But "staying on course" long term does not necessarily mean staying put. Expect your financial advisor to work with you to adjust your portfolio in response to any significant change in your lifestyle, priorities, assets or responsibilities.

But you don’t necessarily have to pay an adviser to get help. 

Most people have the bulk of their savings in bank fixed deposits. offer low-cost and target returns and date; the latter is a diversified funds and bond funds portfolio that becomes more conservative as you age. Many web site or online advisor also offer free tools to help you assess your investing options and assemble a portfolio appropriate for your age and risk tolerance. According to me it offer some kind of investment advice. Taking advantage of that advice can pay off. 

In a recent Financial survey done by me at reputed company of full-time workers, people who saved the most for retirement or any long term goal used online financial advice tools and educational materials provided on web site at more than double the rate of the lowest-scoring savers.

But the do-it-yourself approach requires time to monitor your portfolio and the discipline to adjust to different market conditions. You also have to keep your emotions in check when markets are volatile, which investors admit they have a hard time doing. In a survey 65% of investors say they struggle to avoid making emotional decisions about their money during market shocks.

Even more worrisome: 81% of investors say expectations for double digit gains going forward are realistic and 54% believe their portfolios will perform better this year than last year, when Index rose by 13%. according to the survey.

Coming off three consecutive years of market returns that exceed 10%, that kind of enthusiasm is not surprising. But historically, the stock market has averaged 7% annual gains. Having an objective investment adviser can help ground your expectations in reality. And there’s evidence that some investors do better getting some professional advice.

Median annual returns for fixed deposits and holders who got professional help through advisors managed portfolio were 3.32 percentage points higher than returns for people who invested on their own, even after taking fees into account.

If you decide to go the professional route, you have choices. An adviser at a large investment firm typically charges a fee of about 1% directly or indirectly of the assets he or she manages for you. A new type of investment service known as a “robo-adviser” uses computer algorithms to build low-cost portfolios and charges as little as 0.5% a year. but again it is robo.

You should consider enlisting a financial adviser who can do more than manage your investments. A certified financial advisor takes a more holistic approach to your portfolio. They can help you figure out whether you are on track with your savings and how other investment options fit into your planed goals. 

If you decide to go it alone, you’ll need to be vigilant about monitoring your plan, and should take advantage of any free advice available to you through financial website. But as you get nearer to retirement,consulting at least once with a professional and reputable financial adviser is a wise move.

Importance of An Advisor

With the variety of investment options available today, I suggest that you seek guidance from a financial advisor. Nearly every investment entails special risks that should be discussed with an experienced professional. Your investment goals are unique, and an advisor can help you find the right financial product or fund to match your needs.

When taking a full-service approach to investing, you put a professional's training, knowledge, expertise and resources to work for you. Consider these benefits:

You may be thinking that the Internet and financial planning software can cater to all these needs, but although they are convenient tools, they cannot equal the personal attention and experience of a professional. He or she can make that difference in helping you manage your financial future.

What to Expect From a Financial Advisor

The key for investors is to define and recognise the value of professional financial services, and then insist on getting that value. When you pay a sales charge or a fee, what can you expect a professional to do for you? Your advisor should at least:

These are the basic services that investors should expect from their financial advisors. Beyond the basics, many investors could use even more specialised assistance, like advice on retirement plan distribution options, setting up and servicing retirement plans for small businesses and self-employed individuals, developing tax-advantaged strategies for children's college education, insurance, estate, and trust planning; and year-end mutual fund tax advice. If you need specialised services, there are many financial advisors who can help you obtain the help you need.

Ritesh.Sheth CWM^®

CHARTERED WEALTH MANAGER

              Helping you invest better...  

Allaudin Bldg Shop No 1,Manchubhai Road,Malad East,Mumbai - 400097.
Shop No.9,Param Ratan Bldg,Jakaria Road,Malad West,Mumbai - 400064.
Tel:28891775/28816101/28828756/28823279. CELL:9930444099  www.tejasconsultancy.co.in | E-mail Us: ritesh@tejasconsultancy.co.in

Go Green...Save a tree. Don't print this e-mail unless it's really necessary

Disclaimer:
This emailer or blog is addressed to and intended for the investors of Ritesh Sheth & Tejas Consultancy only and is not spam. You are advised to contact Ritesh Sheth & Tejas Consultancy to clarify any issue that you may have with regards to any information contained in this emailer or blog.The views are personal. Ritesh Sheth & Family or Tejas Consultancy does not guarantee the accuracy, adequacy or completeness of any information in this emailer or blog and is not responsible for any errors or omissions or for results obtained from the use of such information. Ritesh Sheth & Family or Tejas Consultancy does not have any liability to any person on account of the use of information provided herein and the said information is provided on a best effort basis. In case of investments in any of schemes, please read the offer documents carefully before investing.

To unsubscribe from future mailer Please e-mail: info@tejasconsultancy..co.in

Money Secrets the Rich Don't Want You to Know......

What's the secret to wealth? 

Ask most personal finance experts and they'll tell you the secret to becoming rich is no secret at all: Work hard, live below your means and save every dime. The nation's One Percents, however, might disagree.

There's no shame in a modest lifestyle -- even Warren Buffett lives frugally. But if your goal is to get rich, it's helpful to know these secrets the ultra-wealthy aren't likely to share.

Salary isn't the whole story
Climbing the corporate ladder will only get you so far; at some point, you reach your earning potential and plateau. The rich know that in order to grow wealth, it's important to make your money work hard for you -- not the other way around. In fact, Robert Kiyosaki, author of the No. 1 best-selling personal finance book "Rich Dad, Poor Dad," built his entire money philosophy around this concept.

Generating income from passive, rather than active, income sources is the best way to do this. Investments that yield passive income include dividend-paying securities, rental properties, profits from a business you do not directly manage on a daily basis -- even royalties on creative work or inventions.

2. Take advantage of time, not timing If the recent market crash proves anything, it's that no one can predict what the market will do tomorrow. The wealthy know this and make no attempt to moonlight as day traders.

"Time is more important to investment success than timing," 

 "Most of the population believes that timing the market's moves is the key to growing rich through the stock market. The wealthy, however, understand that time and compound returns are the most important factor in growing wealth."

Though it might seem counter-intuitive, getting rich requires investors to adopt an unsexy buy-and-hold strategy, ride out market fluctuations and ignore speculation.

3. Put it in writing The difference between having an idea and putting it on paper is often what separates the uber-successful from average folks. And if you equate success with wealth, it might be time to start writing down your goals, both large and small, in order to become rich.

Thomas Corley, author of "Rich Habits: The Daily Success Habits Of Wealthy Individuals," noted that 67 percent of the wealthy people he surveyed wrote down their goals, while 81 percent kept a to-do list. If your goal is to become a multimillionaire, write it down along with an action plan for making it happen.

4. Understand value over cost
"The wealthy person has three best friends: her attorney, her accountant and her advisor. The wealthy tend to use the law and tax code to their advantage when figuring out how to maximize their wealth, especially over multiple generations, and they are not afraid to spend money up front for counsel to get these answers."

it's common for middle-income indians to cut corners in order to save money, yet ultimately find the results lacking. "The wealthy look at value over cost, but they are still prudent in their decisions," .

5. Eat out less
People who are concerned with saving money often skip the daily latte. The rich enjoy small splurges such as Starbucks whenever they want and instead look at saving from a bigger picture.

Author Paul Sullivan and colleague Brad Klontz, a clinical psychologist with an academic appointment at Kansas State University, conducted research on the difference in spending habits of the 1 percent and the 5 percent. The 1 percent spent 30 percent less on eating out and saved it for retirement instead. "And that, more than the cost of a Starbuck's latte, is what, over time, separates the wealthy from everyone else on the wrong side of the thin green line," Sullivan wrote in Fortune.

6. Be your own boss
Employees work to make their bosses rich. If you're aiming for true wealth, consider starting your own business. According to Forbes, nearly all of the 1,426 people on its list of billionaires made their fortunes through a business they or a family member had a hand in creating.

"Many middle class workers think that starting a business is too risky," 

 "The wealthy understand that what's risky is allowing your time and earnings to be dictated by a boss who couldn't care less about whether you get what you want for your life."

7. Use other people's money
To the average person, "it takes money to make money" might sound like a tired cliche used to justify irrational spending. For the rich, it's a golden rule of wealth.

The key is leveraging other people's money to increase your own wealth.

"Trading time for rupees is a losers' game, especially as technology destroys many jobs that don't require a highly skilled human being." 

 "Using money from banks/investors and hiring people to work for you is a time-tested formula for building wealth, not to mention the tax laws, which heavily favor businesses."

Whether you're fundraising to start a business or flipping real estate for a profit, relying on other people's money to do the heavy lifting greatly increases the return. Of course, it's also riskier than relying on your own funds. But if you follow the sage words of the great Warren Buffett, consider that "risk comes from not knowing what you're doing."

The most common reasons are a lack of financial education and the Conspiracy of the Rich. The rich benefit from the poor and middle classes’ lack of financial education. Think about it – if the rich didn’t have the poor and middle classes, who else would they get to do the jobs that make them wealthier? And why do you think schools don’t offer a financial education?

Join the Ritesh Sheth Coaches and learn ideas that separate Ritesh Sheth from what other financial advisors are teaching.

Please email me on ritesh@tejasconsultancy.in for attending program

Ritesh.Sheth CWM^®

CHARTERED WEALTH MANAGER

              Helping you invest better...  

Allaudin Bldg Shop No 1,Manchubhai Road,Malad East,Mumbai - 400097.
Shop No.9,Param Ratan Bldg,Jakaria Road,Malad West,Mumbai - 400064.
Tel:28891775/28816101/28828756/28823279. CELL:9930444099  www.tejasconsultancy.co.in | E-mail Us: ritesh@tejasconsultancy.co.in

Disclaimer:
This emailer is addressed to and intended for the investors of Ritesh Sheth & Tejas Consultancy only and is not spam. You are advised to contact Ritesh Sheth & Tejas Consultancy to clarify any issue that you may have with regards to any information contained in this emailer.The views are personal. Ritesh Sheth & Family or Tejas Consultancy does not guarantee the accuracy, adequacy or completeness of any information in this emailer and is not responsible for any errors or omissions or for results obtained from the use of such information. Ritesh Sheth & Family or Tejas Consultancy does not have any liability to any person on account of the use of information provided herein and the said information is provided on a best effort basis. In case of investments in any of our schemes, please read the offer documents carefully before investing.
To unsubscribe from future mailer Please e-mail: info@tejasconsultancy..co.in

Top10 Reasons You’re Not Rich Yet

Top10 Reasons You’re Not Rich Yet

As wealth advisor, I have spent many years helping other people overcome financial stumbling blocks so they can become rich. Ironically, the one person I have had the most trouble helping is myself.

Being “rich” can mean different things to different people, but I believe it means having the financial freedom to achieve your goals and live the life you want. I am great at giving advice; I am not always so great at taking my own advice (know anyone like that?). So, when it came to helping my clients understand why they weren’t rich yet, the easy part was explaining the culprits, because I was all too familiar with most of them.

Regardless of our upbringing, education, profession or lifestyle, most of us are not where we want to be financially and our reasons are probably more similar than different. The good news is that it is never too late to become rich if you, like me, are ready to own up to the reasons you’re not and do something about it.

Want to know why you aren’t rich yet? Keep reading.

#1: You spend money like you’re already rich.

Sure, it feels good to buy expensive things, whether it’s a luxury car, designer clothes, a big house in the burbs, or a tropical vacation. Even if you don’t necessarily buy pricey items, if you consistently buy stuff you really don’t need, it still adds up fast (Rs.30000 trip to Target for toothpaste?). But the shopping high only lasts until the guilt and regret set in or the credit card bill arrives. Most of us are guilty of living beyond our means and using credit cards more than we should. The problem is that as long as we continue to spend more than we have, we can’t start building wealth. Chronic overspending and high-interest, revolving credit card debt are your worst enemies when it comes to financial success. Spend like you’re poor and you are much more likely to become rich.

#2: You don’t have a plan.

Without clearly defined short, mid and long-term goals, becoming rich will just seem like an unattainable fantasy. And that turns into your go-to excuse for why you shouldn’t bother saving or stop overspending. As we say in the financial industry: those who fail to plan, plan to fail. Creating a financial plan may seem overwhelming or intimidating, but it doesn’t have to be. Whether you do-it-yourself or decide to work with a financial professional, the process simply starts with prioritizing your goals and writing them down. Put that list where you can see it on a regular basis. Visual reminders go a long way in helping us stay on track.

#3: You don’t have an emergency fund.

I know, you’ve heard it a hundred times: you need to have at least six months of income saved in an emergency fund. And yes, it’s much easier said than done. However, I’ve seen too many people (including myself) get hit with a major unplanned expense, whether it’s a car or home repair or a medical bill, or an unexpected job loss, accident or illness that’s led to a drastic reduction in income. When these things happen–and they do, more often than you might think–not having a financial safety cushion can make the situation much, much worse. If you’re forced to rely on credit cards, you’ll end up sinking deeper into debt instead of, yes, saving to become rich.

#4: You started late.

With every year or month that goes by without saving, your chances of becoming rich decrease. Time and compounding interest are your two best friends when it comes to growing money, so wasting them really hurts. Just like exercising, the hardest part of saving is starting. Even if you’re in debt, making little money or have a lot of expenses, you can still always save something — even if it is a small amount. The sooner you get yourself into the habit of saving — regardless of how much — the easier it will be for you to continue and eventually increase those savings. I like to think of saving as a muscle you have to work out and build with practice. Even if you start saving late, you can still become rich if you’re committed enough. But you need to start. Now.

#5: You’d rather complain than commit.

“Life is too expensive.” “I’ll never get out of debt.” “I don’t make enough money.” “Investing is too risky.” I’ve probably heard every excuse for why someone isn’t saving, investing or planning in general, and I’ll admit I’ve used a few of them myself from time to time. It’s easier to be lazy and let bad habits fester than to commit to –and follow through on — changing them. It’s no wonder obesity and debt are epidemics in our country, and that millions of Americans have had to push off retirement. As long as the complaining, excuses and finger-pointing persist, so too will not becoming rich. Instead, take responsibility for your bad habits and focus on what you can do to change them. Then do it.

#6: You live for today in spite of tomorrow.

I get it. It is really hard to think about retirement and other distant fantasies when we have needs and plenty of wants now. The bills have to get paid, the family must be fed, momma needs a vacation — and a new wardrobe to go along with it. The problem is that impulsive and overly-indulgent behavior commonly lead to credit card debt, spending money you might have otherwise saved and, yes, not becoming rich. Do yourself a favor: Ditch the “buy now, worry later” mindset and instead, adopt a “save now, get rich later” mindset.

#7: You’re a one-trick investor.

You might be lucky enough to become rich by betting all your money on one type of investment. Just like you might be lucky enough to win the lottery. But that’s not a strategy for getting rich (at least, not one I’d ever recommend).

One of the worst financial mistakes you can make is putting all your money eggs in one basket. Doing so puts you at too much risk, whether it is being too conservative or too aggressive. Sure, the stock market is on a run and real estate is on an upswing again, but are you prepared for when the tides turn? Because they will. And if you are invested in all fixed-income securities like CDs, bonds and annuities and think you’re safe, inflation should make you think again. Your investment portfolio needs to include a good mix of investments with varied levels of risk and return potential and liquidity (so you can get your money when you need it).

#8: You don’t automate.

Here’s the secret to saving: Automation SIP (Systematic Investment plans). Saving is seamless when it’s automatic. Unfortunately, we are not born to be savers. We are impulsive and greedy by nature. Being responsible requires much more discipline. However, automation forces us to be responsible without too much effort. And all it requires is setting up regular transfers from a salary or bank account to a savings or Mutual investment account. Without it, we are much more likely to spend money we could be saving. Even if it is a seemingly small amount that you automate, those steady investments can make a big difference over time. Automate whatever you can whenever you can; just be careful to avoid overdrafting your account and try to increase your savings amount periodically.

#9: You have no sense of urgency.

You might think you don’t need to worry about getting out of debt or saving because someone, or something else will save you. Maybe it’s a pay raise, a new job, an inheritance, a rich spouse, or the lottery you’re counting on. Whatever “it” is, you use it as an excuse to put off taking steps on your own to become rich. The problem is that very little in life is certain. Who knows what will actually happen, or not happen, so why not focus on what you can control now? Save now and save yourself — just in case something, or someone, else won’t.

#10: You’re easily influenced.

Maybe you live with a chronic overspender or a typical day out with your girlfriends involves shopping. Or maybe it’s your inner “Real Housewife” that you sometimes can’t control. We all have negative influences in our lives that threaten our chances of becoming rich. The superficial, materialistic, sensational culture in which we live is probably the biggest one. The suffocating swirl of media that goes along with it makes it ten times worse. The trick is not giving in to temptation. How? Some of it is making conscious choices to avoid putting yourself in vulnerable positions. But most of it is having the willpower to keep the goal of becoming rich in the front of your mind, especially when you are tempted to sabotage yourself.

Trying to make money in equity.....when is the time is right to buy

Today, I'll share with you when the time is right. 

I always love to own Diversified Equity Mutual Funds instead of investing directly in Stocks for My long term investment and i insist all my friends and Customers to own Diversified Equity Mutual Funds for Long term Wealth Creation.  

Let me brief you what is Diversified Equity Mutual Funds

An investment fund that contains a wide array of securities to reduce the amount of risk in the fund. Actively maintaining diversification prevents events that affect one sector from affecting an entire portfolio, make large losses less likely.

As all Diversified Equity Funds invest in stocks and it is related to each other i feel it make logic to see stocks or funds picking style.

Let’s See,

Trying to make money as the market goes down is difficult… but under the right circumstances, it is possible…

For most people, it's not worth even attempting. 

In short, making a bet that stocks will fall goes against the grain… Thanks to earnings and inflation, stocks have an inherent upward bias. 

The market does crash by 40%-plus from time to time. Stocks fell 57% from 2007 to 2009. And the stock market dropped 49% from 2000 to 2002. But these kinds of spectacular falls are the exception, not the rule. They're hard to time just right. 

Today, I'll share with you when the time is right. 

Let me explain… 

If you've read my work for any amount of time, you know my investment prism – I want an investment that is 1) cheap, 2) hated, and 3) in the start of an uptrend. I always want to make investments that are good values… that most investors aren't interested in… and that are trending up in price. 

That's the ideal setup for an investment to go up. 
If you see the opposite setup, then you have a recipe for lower stock prices. 

We need to look at both the trend AND value to find the best time to short stocks (to bet on lower prices). 

The simplest way to think of opportunity in the stock market is to think of it in four different states… based on trend and value. 

The easiest way to visualize this is the graphic below. Take a look… 

This is simple. The market has four distinct states based on trend and value. 

Through testing dozens of different systems to determine what REALLY works, we found that each state of the market leads to significantly different returns. Here are the basic states and how we want to be invested in each: 

1.	Cheap and in an uptrend – We REALLY want to own stocks.
2.	Expensive and in an uptrend – We keep owning stocks despite valuations.
3.	Cheap and in a downtrend – We're not long OR short.
4.	Expensive and in a downtrend – The only time we want to bet against the stock market.

There's only one state of the market in which you'd want to bet against stocks… And that's when they're expensive and falling in price.

Today, stocks are somewhat expensive. But they've rebounded from their lows and are NOT in a downtrend. That means we're not in the "red" mode right now… which means shorting stocks today is a bad idea.

Personally, I'm still bullish on stocks. And I believe we could see significant gains over the next 18 months in what I've been calling The Melt Up.

Stocks will certainly fall at some point. And when we finally fall into the red in the box above, we'll bet against some stocks for the first time in a very long time.

We're not there yet… But now you know the principle for success…

Don't bet against stocks until we're in "the red." 

Domestically, we are getting incrementally positive from a medium term perspective after many quarters of being cautious, as you know. What do we see that others don’t? 

A confluence of events like better IIP, lower inflation, lowering interest rates etc.,all a harbinger of better times than worse, if the past were to rhyme with the future. We once again are taking a contrarian position from a medium term perspective, just as we were alone and skeptical in Jan – Mar of this year. 

Yes! We are on tenterhooks like most others but for different set of reasons. We wish to see if the narrowing window of opportunity – that the ground up situation is getting better, coincides with investors good humor till date. If it does, it shall be a buying opportunity that investors, who have been cautious so far, will look back and enjoy buying into. 

Again, I always love to own Diversified Equity Mutual Funds instead of investing directly in Stocks.

So, Funds which can generate good Returns over Long term

1)     HDFC TOP 200 FUND & HDFC CAPITAL BUILDER FUND

2)     RELIANCE VISION FUND & RELIANCE RSF - EQUITY FUND

3)     ICICI PRU TOP 200 FUND & ICICI PRU FOCUSED BLUCHIP FUND

4)     KOTAK 50 EQUITY

5)     L&T EQUITY FUND & L&T INDIA VALUE FUND

6)     CANARA ROBECO EQUITY DIVERSIFIED

7)     MIREA ASSET INDIA OPPRTUNITIES FUND

8)     DSP BR EQUITY FUND & DSP BR FOCUS 25 FUND

9)     UTI MASTER SHARE & UTI LEADERSHIP FUND

10)IDBI EQUITY FUND & SBI EQUITY FUND

Few More to watch Franklin prima plus, Birla advantage fund

Please get in touch with Us to know Scheme information   

Happy staying invested for now! 

Thanks a lot for your time and allowing us to stay in touch with you. All of at Tejas Consultancy are grateful for the opportunity to serve you. 

-- 

Regards,

Ritesh.Sheth CWM^®

CHARTERED WEALTH MANAGER

              Helping you invest better...  

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