Investment Philosophy


  1. Invest In Assets (Equity and Real Estate) - Historically a well-managed equity portfolio has given above 20 % per annum return, beating any other form of investment.
  2. Inflation Is The Enemy No.1 – It is the inflation which silently erodes the value of our savings. As an investor our investments should not only protect our capital but must give us enough return to protect the purchasing power of our capital.
  3. Invest For Long Term – A solid portfolio, if invested for long period gives phenomenal returns. Frequent shifting only adds to expenses and taxes thereby hurting the returns.
  4. Keep Cash & Cash Equivalents- Cash is automatic hedge against risky investments. Loss of returns for keeping cash is offset by the opportunity to buy when shares are available at 70 % of their intrinsic value.
  5. Focus On Individual Asset- It is not the movement of broad market and trends which benefits us; it is the individual asset and their valuations which determine the performance of our portfolio.
  6. Have A Small And Focused Portfolio- One cannot understand the entire range of stocks. We define our circle of understanding as well as the parameters for buying any stocks.
  7. Research- One should put maximum emphasis on the research. To select a few stocks out of the thousands of stocks, one requires a lot of intense research. A firm should follow the process which can detect the future leaders or laggards.
  8. Slow but Sure- It’s not speed of returns which should define the performance of portfolio but rather depends on consistency and surety which should define the performance.
  9. Beware of Experts, Expenses and Excitement- Experts at TV Channels, magazines churn out so many tips every day without any responsibility. One must keep the expenses as low as possible. High expenses which incurred for long term harm the returns of portfolio. High churning, high management fees (insurance companies); high commissions to brokers are harmful to long term growth of portfolio. Most of the time we invest in stocks because of excitement of gaining in short span of time. This ultimately leaves us with losses. Investment process is in fact very boring.
  10. Portfolio Should Be Constructed Around Different Asset Classes like equity, real estate, mutual funds, bonds, overseas investment and cash in such a way that it can not only withstand the adversity but can take advantage of the adversity.
  11. Protection Of Capital- It is the top most priority even at the cost of reducing the return to the investors.
  12. Investment Portfolio should be viewed as an unfolding movie rather than still photograph depending upon outside opportunities and individual’s profile. Portfolio is to be monitored constantly and adjusted accordingly depending on the changed situations.
  13. Every Individual Is Different depending upon the life-stage, net-worth, goals, risk profile and attitude towards money. Our aim is to offer him suitable mix of products to suit his individuality.


 

We are available for comprehensive Financial Planning Session. Please contact us at lalit_kumaar@yahoo.com