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Investor Success Stories How Satish Pandey helped a client afford the best education for his children

How Satish Pandey helped a client afford the best education for his children

The advisor made his client see the importance of financial assets and prioritise long-term goals
Kanika Bhargav Mar 29, 2018

Until Manish (name changed) met Satish Pandey, an independent financial advisor, his idea of saving for future goals was to buy gold every quarter. A friend, who clearly understood the risks of investing only in physical assets, advised Manish to consult an expert and recommended Satish. The year was 2006. At the time Manish had a steady income of Rs.32,000 per month and his wife earned around Rs.6,000 a month by giving tuitions.

Meeting with Satish changed Manish’s perspective altogether. After the very first session with the financial advisor, he came to realise the importance of financial assets; Manish also now understood that he had an overexposure to gold. “I showed him the historical performances and highlighted the difference in the returns on gold and other financial products,” Satish said, talking about his early discussions with Manish. “Back in 2006, the stock market was like this mythical creature everyone talked about, but had no clue how it worked. Even Manish had his doubts. I explained to him how investing in mutual funds has an edge over investing in gold,” Satish added.

But before investing, the financial advisor helped Manish focus on the long-term goals, ignoring the short-term problems. He made him identify his future goals. Both Manish and his wife said that children’s education was their topmost priority. “I reviewed their situation and advised Manish to start investing in multicap equity funds through SIP. Initially, I recommended him to start investing Rs.2,000—Rs.1,000 for their daughter and Rs.1,000 for their son,” Satish said.

Explaining the rationale of his recommendation, Satish said that after analysing the risk appetite and time horizon, he thought that SIP in a multicap was suitable for Manish. “Back in 2006, he had set a target of Rs.5 lakh for his children’s education fund. Since the children had 10 years to get into college, I chose a multicap equity fund for him as it provides better risk adjustment making it more suitable for new investors,” Satish added.

Following Satish’s advice, Manish started a SIP and kept on increasing the SIP contribution every year with the increase in his and his wife’s income. The investment towards the children’s education grew to a robust sum which was adequate to pay off his son’s college fees.

Now, Manish invests Rs.5,000 per month in order to provide the best education and hopes to save enough to be able to bear the expenses of overseas studies of his children.



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