Guest Column

Always remember that clients don’t issue addendum before making changes to their behavioral patterns.

In the western world, asset allocation advice driven by computer algorithms (Robo-Advisors) are posing serious threats to human advisory practice. If we believe in trends, then the time is not too far for us to do a catch up game.

The genius of the Berkshire Hathaway approach, particularly the approach to acquisitions, is to focus on likely significant future changes.

Investors can’t distinguish between right and wrong advice.

REITs and Investment Trusts have been accorded a pass through status in this Budget making them much more attractive for investors.

A recent article published in a leading newspaper stated that PPF has beated Sensex returns over a 20-year period caught everyone’s attention. Amit Trivedi shows how statistics can fool us.

Even if some people are able to outperform the markets, most are not. In financial jargon, most people do not have an edge over the financial markets, which is to say that they can’t perform better than the financial market through active selection of some investments over others.

IFAs can draw lessons on how to alert and caution investors from airline safety instructions. Read on to find how…

Imagine that your personal life is a business. Are you profitable? If you’re neglecting your loan balances and buying expensive things on credit, consider how you would react if one of the companies in your portfolio was doing the same thing.

-

Most professional investors pride themselves on their timing of purchases and thus focus on current conditions.

There are many other measures to take into account, some more important than others, like assets including intangibles, liabilities including contingencies, and mental and physical health.

The real measure of successful investing is how the investor feels about the result. Feeling good about the result is an unwritten, but very important, psychological goal.

My question for all of us is: How are we going to hedge our inflation risk ahead of inflation manipulation replacing interest rate manipulation?

The single main reason is the psychological barrier that an IFA has towards changing the business model.