IFAs chalk out investment plans for their clients to help them grow their wealth. But who manages their wealth and what is their personal investment style? To find out, we spoke to a few leading advisors. Most of them believe, mutual funds are the best choice (‘Mutual funds hi sahi hai).
Suresh Sadagopan, CEO & Founder, Ladder7 Financial Advisories, believes in putting his own skin in the game. He invests in funds, which he recommends to his clients. Sharing his investment style, he said, “My personal style of investment is not very different from my recommendations. I do not put money in real estate and commodity, as these instruments are not good for wealth creation. I put my money only in mutual funds. In fact, I have liquidated my investments from banks to invest all of it in mutual funds.”
Suresh follows moderate asset allocation, i.e., 55% equity and 45% debt. “I am a moderate risk taker. In addition, I have invested some portion of overall corpus in sectoral funds also. These funds can help me multiply wealth over a long term,” Suresh says.
Some advisors have a different view, though. Jayant Vidwans, of Vidwans Financial Planners, invests his money in a mix of mutual funds and bank products. He believes, “Mutual fund is the safest bet these days. Although I prefer investing in different asset classes, more than half of my investments are in mutual funds. My average portfolio mix consists of more than 50% invested in equity asset class and the other half in debt oriented instruments. To receive some direct equity exposure, I have also invested in a few large cap equity funds. For the sake of liquidity, I have also invested some amount in bank fixed deposits.” Jayant manages his money on his own.
Unlike Suresh and Jayant, who manage their own wealth, Nikhil Naik, of Naikwealth Planners, hired an advisor for his portfolio. “I believe advisors tend to be biased about their own investment recommendations. For the sake of an unbiased opinion, I consult another advisor,” he says.
Nikhil believes strongly in mutual funds; he invests all his money in them. “I have a conviction about mutual funds. I believe people should invest their money in what they understand. Mutual funds are my area of core competence, which is why I only invest in them and advise my clients to do the same,” he emphasises.
Sharing his asset allocation, Nikhil added, “Around 90% of my investments are in equity instruments. The rest lies in debt and other money market instruments.”
