Day 1 of CCIM 21 closed on a high note as more than 3218 attendees participated in this mega event and thousands of other investors joined our event through other streaming apps. In fact, the response was so good that the platform has to increase its bandwidth to facilitate more attendees.
As many as 7 speakers addressed the changing dynamism and also shared the much needed clarity on managing finance. Every speaker touched upon some of the most pertinent topics and also answered questions from the audience.
To view the Day 1 session recordings, click here to login and go to 'Video on Demand' section in the Navigation bar on the left.
To attend Day 2 and Day 3 of Cafemutual Confluence Investment Marathon 2021, click here.
Here are the key highlights of day 1.
Yogesh Patil, Head-Equity, LIC MF
Topic: Emerging trends in India
- We see five emerging trends in India — industry consolidation, technology adoption, structural changes, returns and domestic manufacturing & growth
- Digital transformation has become the norm today, pace of technology adoption has never been so quick across sectors
- Pandemic impact on economy is expected to wane off by December as most people would have been vaccinated by now
- Reforms have led to increased competition resulting in more customer choices, increased efficiency and higher investments
- India's structural story is on. It's once in a life time opportunity to invest.
Saugata Chatterjee, Co-Chief Business Officer, Nippon India MF
Topic: Wealth Creation in Good & Bad times
- Wealth creation in long term is a journey, not destination
- Under the influence of emotional bias, when the markets are high, investors typically presume a further rise and buy in greed. Likewise, they sell when the market is low fearing a further dip. However, greed and fear must be kept aside and investors must remain invested across market cycles to achieve wealth creation
- Equity has the potential of generating wealth over the long term. Returns of investment in gold, silver and FD from 1980 to 2019 more or less depict a modest growth as against equity which has delivered exponential growth
- Wealth creation can be illustrated through the formula of compounding: A=P(1+r/100)^t. Compounding is said to be the eighth wonder of the world which works best over a longer period of time. Instead of r (return) that investors obsess about, they should focus on t (time)
Dhirendra Kumar, Founder & CEO, Value Research
Topic: How to select a mutual fund
- Investors should take time frame and goals into consideration when selecting mutual fund scheme for investment
- First time investors who are investing for the long term should look at aggressive hybrid and balanced advantage funds
- First time investors investing for a short duration should consider short-term debt funds
- They should avoid thematic and sectoral funds as they are not diversified
- Portfolio of good and bad funds look similar. Timing, discipline and consistency matter more than stock selection in fund management
- Funds, which have overall good record shouldn’t be sold in a hurry
Amit Trivedi, Noted Author
Topic: Generating regular income from mutual funds
- Answer to these four questions helps in making an informed investment decision - (1) Why do I need regular income? (2) How much regular income will I need? (3) From when do I need regular income? And for which period? (4) What other things do I seek? (for example, rising income for meeting inflation cost, etc)
- Traditional investment avenues typically offer a fixed return for a pre-determined period and may thus not align with investors time horizon and rising inflation. Mutual fund investing can overcome these challenges and investors may opt for (SWP) Systematic Withdrawal Plan to enjoy a steady inflow. However, it must be noted that SWP is not suitable for investors in their accumulation/pre-retirement phase as they may lose out on the benefits of compounding
- Funds needed in the short term must be parked in liquid funds, whereas in the case of medium-term and long-term needs, debt and hybrid/equity funds may be considered respectively
K. S. Rao, SVP & Head - Investor Education & Distribution Development, Aditya Birla Sun Life MF
Topic: Saving for a happy second innings - retirement
- There is no loan in the second innings (retirement) to fund your requirement, you have to fund every goal by yourself
- When one reaches the age of 50, it’s time to stop taking loans and move savings to less risky assets
- Have patience, understand your risk profile and learn to adapt to changes when saving for retirement
- Investors should step up SIP by 50% every 5 years to enhance retirement corpus
- One should consider the fact that people are living longer these days. Plan accordingly as the cost of living will also be higher
Sunil Subramaniam, MD, Sundaram MF
Topic: What opportunities & challenges does the Indian economy behold?
- India’s GDP to shift up by $1.4 trillion by 2025 and expected to reach $4.1 trillion
- Growth recovery post the pandemic would be slow. However, with the cumulative impact of policy measures, investment sentiment is expected to greatly improve
- India has witnessed a sharp pickup in gross FDI inflows and has also seen the maximum rise in FDI amongst its peers
- Lower corporate tax rates and improved EoDB (Ease of Doing Business) ranking are expected to work in the favour of Indian economy
Harold Pollack, Author, The Index Card
Topic: The simple rules of investing
- Concepts of investment are very simple, they can fit in an index card
- Five simple rules of investing are:
- Buy diversified cheap index fund
- Don't dabble in stock picking or over-complicated stuff
- Save 20% of your money
- Pay credit card balance on time as they charge high interest
- Avoid MF schemes that try to pick winner and losers
- One problem in finance industry is that best advice is boring. People don't find it lucrative
- Young people investing in risky assets like bitcoins is worrying. Index funds should be the preferred option as every research shows they do very well
- There is no point reviewing investments every day and making changes
- Trying to be too active doesn't makes sense. A lot of active funds underperform their benchmark
- Advisors offer great value. They should focus more on planning clients’ goals then picking up funds for them
- Advisors should not get into picking winners and losers
Day 2 of CCIM 21 has a line-up of 8 other impressive speakers who will also help attendees make the most of existing opportunities while safeguarding against challenges.
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