Monday, 31 May 2021

SMOKING KILLS TAN(BODY) SIP FILLS DHAN (WEALTH)



Today is 31st May...  No Tobacco Day


I know all you smokers do not want any gyan on how smoking affects your health

I am not here to do that

But I will not leave this opportunity to give you Gyan on how smoking affects your WEALTH !

 

I understand that your job is tension filled and you do need a break and smoking helps you get back to job with clear mind

But there are 100 other ways of getting out of this stress/tension.

How about a 5 min breathing exercise?
Why not a cup of Hot coffee?

 

A research paper published in the Indian Journal of Public Health in 2017 revealed that Indian smokers spent a whopping Rs.13,000 crore on treatment towards medicines due to tobacco use.

 

Cigarettes are also getting more and more expensive year after due to heavy taxes by Govt.

So, this smoking addition not only burns a hole in your lungs but in your pocket too.

 

HUGE HEALTH BENEFITS OF QUIT SMOKING

 

The health benefits of not smoking for 3 to 6 months include:

  • the small hair-like structures that clean your lungs, called cilia, are working better 
  • you’re likely to cough and wheeze less, and cough up less phlegm
  • blood flow to your fingers and toes improves
  • your body is better at protecting cuts and wounds from infection
  • you may feel less stressed or in a better mood than when you were smoking.

 


I would say that your entire Retirement Corpus can be created by just your 1 single habit of Quitting Smoking !



Spending ₹3500 per month on cigarettes? 

Invest instead and get a return of ₹2.42 crore in 30 years. (See image)

Quit Smoking and Start Investing!


Yes..
your eyes is not deceiving you.
its indeed 2.42 CRORES !

 

They say SMOKING IS INJURIOUS TO HEALTH. 

I would SMOKING IS INJURIOUS TO YOUR WEALTH even more !!

 

Like wise We all know by staying invested and investing  regularly you create wealth but how many people have ran the race so far. 

 

What all you can do when you quit smoking and route that money

a)    Spend quality time with family

b)    Have a Vacation with family

c)    Start that hobby that you always longed for

d)    Pay off your loan and become debt free

 

SMOKING AFFECTS YOUR INSURANCE PREMIUM :

REMEMBER WHEN YOU QUIT SMOKING, NOT ONLY ARE YOU SAVING ON CIGARETTE MONEY BUT ALSO ON YOUR MEDICAL EXPENSES THAT SMOKERS INCUR DUE TO POOR HEALTH.

And may you also be aware that Life Insurance companies CHARGE MORE PREMIUM for smokers.

 

I calculated for EXIDE Life Insurance for a 30 year old for Rs.1 crore for 30 years term a

and these are the results


 

The premium for a 30 year old NON-Smoker comes to Rs.9676 (incl GST)

 

See the premium for a Smoker






 

Did you observe it’s a huge 40% plus jump from Rs.9676 to Rs.13,775/-

 

 

Insurance put Smokers into HIGH-RISK category and hence the premium shoots up.

 

And this difference of Rs.4099 for a period of 30 years even a very conservative growth of 12% per annum grows to a huge huge 12 lakhs

 

 


 

 

 

So, quitting easily results in profit in all directions.  (Except if you a ITC shareholder) !

 

 

 

Smoking will kill you definitely earlier than you are supposed to.

But routing your smoking money to Investments will help you live peacefully but also help you live with pride with RICHNESS. 

   


 

Think Smart

 

Quit smoking

& Start investing!!!

 

All the best

Srikanth Matrubai

Author : Don’t Retire Rich

 

 





All the best,
Regards,
Srikanth Matrubai
MUTUAL FUND DISTRIBUTOR
REBALANCE VOLATILITY CERTIFIED COACH
Srikanth Matrubai, Author of the Amazon Best Seller DON'T RETIRE RICH


You are strongly encouraged to consult your financial planner before making any decision regarding this investment. The views expressed here are the author's personal views and should not be interpreted as a recommendation to invest/avoid.

 
Srikanth Matrubai Author of the Amazon Best Seller DON'T RETIRE RICH

Do read the book and give your valuable feedback and request you to post positive comments on Amazon. https://amzn.to/3cHUM6M/ 

You can purchase the book on Amazon and Flipkart 

For the best of ideas on where to invest to create Mountains of Wealth 
join my TELEGRAM channel
WEALTH ARCHITECT
    https://t.me/joinchat/AAAAAELl4KUnaJzi-JJlDg/

Saturday, 29 May 2021

What to do if your fund is underperforming



Is Your fund is underperforming?
Is Your friend’s portfolio is doing better than you?
Do you feel like Wanting to switch some funds?


Do you feel like Wanting to go for an entirely another asset class altogether? Maybe Gold? Maybe Bitcoin?


Its indeed no surprise to me (being in Investment field for 30+ years) that people change their Investment strategy itself along with the Market movemetns. 

Yes....I agree that you should move with the markets but changing your investment strategy itself with change in Market Sentiments is a sure shot recipe for disaster. 


 

You have good amount of cash to invest?  You Do not want to miss the rally?


It takes character to sit there and do nothing.  I didn’t get to where I am by going after mediocre opportunities.

 ─ Charlie Munger

 

Remember, often…. the itch to take some action affects most investors  whenever there is volatility in the markets and when a risk event happens (like the present COVID). 

And every delay in taking action increases the bouts of excitement / frustration.  

And then there is this factor of FOMO (The Fear Of Missing Out).

Never let Greed / Fear takeover your behavior.  Its always good to take a decision rationally after weighing all the pros and cons. 

Before going ahead, you are advised to go through this article so that you make a BETTER Decision.

 

THE SHEEP’s ITCH

There was this Sheep which had the bad habit of always rubbing its neck against wall, tree, or pole to which it was tied to clear its ITCH. 
One day its Owner tied the sheep to a wooden Pole which was placed horizontally.
The sheep with its bad habit of rubbing, could not find any object to rub its neck and started getting restless
To its luck (?), it found a sword hanging before it.


The Sheep, gleefully, stretched out its neck to relieve its itching.

And yes, as you guessed, the Sheep’s neck slowly started getting cut and blood started oozing out.

The Sheep was enjoying the rub as it gave great pleasure.

After few moments, it started feeling pain in the neck and was horrified to find blood oozing out.

It started bleeding and kicking around to escape itself but there was no one around to help it out.

And by the time, the Sheep’s owner came back, the Sheep had collapsed and died.

 

What’s the connection between a Investment World and the Sheep Analogy?..........The ITCH to be ACTIVE!       Its in being inactive that TRUE WEALTH is created.

 

Where is the need to sell/buy/switch if the job is getting done?



Portfolio Reviews are absolutely necessary, but changes are not !!


Unless the fund performance has deviated too much or there is another top class alternative….no need to do the tinkering. 


Yes. Sometimes the fund may be under-performing but it makes sense to analyze the reasons behind the under-performance. 


Are the peers doing better than this fund?


Has there been a continuous under-performance?


Has the fund changed its mandate itself?


Remember, each fund has a role to play in the overall portfolio and each fund has a different level of risk-reward ratio. 


A fund thats down 20% today could easily be UP 20% in 6 months time. 

Classic example is IDFC STERLING VALUE FUND. 

Those who invested in IDFC Sterling Value fund in July 2019 were seeing underperformance till March 2021 (21 months) but it took just 2 months of good performance to see the fund BEAT Nifty handsomely for the entire period from July 2019 to May 2021

The fund is a VALUE FUND and is designed to perform during these kinds of markets. 












There could be a huge list of reliable and valid reasons why this particular fund is not performing as per expectations.

You are better off looking at the entire portfolio with a holistic approach than just focusing on 1 or 2 under-performing fund.

 

Your Wealth Journey would see lots of variation and go through troublesome periods.  Invariably, there are going to be couple of years of huge gains, and there could be more than 4-5 years of flattish / negative growth.
What matters is whether your portfolio is on track to achieve the goals intended

Being ACTIVE and taking ACTION for the sake of taking action is definitely not the answer.

Sometimes, the best thing would be to JUST DO NOTHING.

Yes…its very difficult to convince yourself NOT TO DO ANYTHING when everyone around you is hyper active. You will definitely going to see the effects of the FOMO (Fear Of Missing Out).


As written in my book DON’T RETIRE RICH, 

you are better at focusing on 

JOMO (Joy Of Missing Out) rather than FOMO.

 

And please do not think I am asking you to be complacent. Not at all.
You are being encouraged to take RATIONAL decision wherein you analyse the situation in a relaxed way and without being in a hurry.

 



TAKE RATIONAL DECISION.
Never ever take decisions based on either Fear or Greed.
Never ever act in Panic or Excitement.



AVOID AVERAGING:


Do not average Consistently under-performing funds.
There is no point in averaging an under-performer, especially if the future does not look rosy enough and there are good alternatives available.

This is more applicable to the Sector / Thematic funds as these types of funds requires constant monitoring and actually do require regular taking of ACTION!

 

 

As long as the fund is aligned to your goals and progressing as per schedule, it shouldn’t bother you if the markets are running away or if other funds which is not in your portfolio are giving mega returns.

 

 


BORING IS BEST WHEN IT COMES TO WEALTH CREATION.

 

BEING AGILE and looking out for opportunities and to prevent wealth destruction is definitely on but BEING OVERACTIVE for the sake of being active is a STRICT NO-NO. Avoid overthinking and overanalysing.

The Grass is always greener on the other side. You will definitely tempted to move / switch your funds. But before doing so...ask youself why you are doing the switch. 


a) Is it because of recent spike in performance?
b) Is the new advertisement of the fund very tempting?



DO REMEMBER : 


Don’t try to be either overcautious or over adventurous. 


Do not SELL at funds without proper analysis and turn your paper loss into permanent loss

And at the same time, do not jump and start ramping equity by putting your entire 100% at one go.

Stick to Asset Allocation. Don’t go overboard on debt or equity or any asset class for that matter. 

Its apt to take an example given by BRAIN TRACY 


When an airplane leaves Chicago for Los Angeles, it is off course 99 percent of the time. This is normal and natural and to be expected. The pilot makes continual course corrections, a little to the north, a little to the south. The pilot continually adjusts altitude and throttle. And sure enough, several hours later, the plane touches down at exactly the time predicted when it first became airborne upon leaving Chicago. The entire journey has been a process of approximations and course adjustments

 

Apt adjustments wherever required is an absolute necessity. 

Trying to be busy in Wealth Creation is a STRICT NO-NO


 A person taking a photo-copy (xerox) of a 10,000 page book definitely looks busy and for a pretty long time too. 

 


WHAT TO DO THEN ?


1. Stick to Basics......to your Asset Allocation


2. Focus on Your Goals. 



Make your roots strong.
Ensure that you have a Super Strong Portfolio capable of weathering all storms and  having sufficient exposure to all types of asset classes with the right percentages and allocation. If the roots are strong, the need to take ACTION seldom arises.
But, do note, regular Portfolio review and monitoring is a definite YES.

Anytime you sell underperforming fund and buying Outperforming, 


Please understand you could well be 

"BUYING HIGH & SELLING LOW"









 Finally, I leave you with the thought and that is .....


BETTER TO TAKE A  DELAYED WISE DECISION  


THEN TAKING A EARLY WRONG DECISION !



 

All the best, 

Srikanth Matrubai, 

Author, DON'T RETIRE RICH


RVCC






You are strongly encouraged to consult your financial planner before taking any decision regarding this investment. The views expressed here is the authors personal views and should not be intrepresented as a recommendation to invest/avoid.

 
Srikanth Matrubai Author of the Amazon Best Seller DON'T RETIRE RICH

Do read the book and give your valuable feedback and request you to post positive comments on the Amazon. https://amzn.to/3cHUM6M/ 
You can purchase the book on amazon and flipkart 


 Please subscribe to my TELEGRAM channel https://t.me/MutualFundWORLD/

Wednesday, 19 May 2021

BITCOIN BITBIDI.... Bitcoin is NOT an Investment !




The mantra for me has been #BITCOINBITBIDI 
(meaning leave Bitcoin alone)


I have been relentlessly behind my investors to avoid Bitcoin in spite of innumerable articles and posts.


Just stick to your Goals and Asset Allocation.

Your Financial Advisor knows best about what to do and what not to do!!!


CRAZE OF THE MILLENNIUM .....the BITCOIN!!

Then comes one more investor Mr.M and sends me a Newspaper clipping which says BITCOIN gained $1000 in 1 single day and asks me 
"Why did you not recommend me this....??
You are talking about SIPs which give me returns after 10-15 years but look at this...it has given in 1 day what your SIP will not give even in 1 year"!!!

I said :"M"


Is Bitcoin regulated? My God....NO!!!

Is Bitcoin a commodity? ....NO!!
Is Bitcoin backed by any Tangible Asset?....NO!!
Is Bitcoin a Currency?....NO!!

Try paying your Income Tax with it and you will understand..

Is Bitcoin easy to understand?...NO! 

Even JP Morgan's CEO Jamie Dimon acknowledged that he didn't understand Bitcoins and says Bitcoins are worse than Tulip Bulbs!

If Global Banker doesn't under BITCOIN...will you and me understand it?
Do you want to buy something you don't understand?? NO...right...then why to SPECULATE..

Is Bitcoin regulated?? ....NO!!!
No SEBI, 
No RBI, 
No FED to regulate...

If someone frauds you in Bitcoin...you don't have anyone to turn to complain to and get back your investment..... 
You want to invest in something where there is no one to go to in case of fraud?? NO...right!  Then better stay away


I would rather be happy to be called as OLD FASHIONED who is happy with 15% for next 15 years than a roller coaster of 40% plus and 50% negative tweet after tweet !!

If you are in the mood of some adventorous investing., go ahead and invest in Start-ups....at least it could not only give some employment to someone in this pandemic times but could even turn out to be a lottery for you. 


Dear Investor...BITCOIN or for that matter other Cryptocurrency are being used by Hawala dealers, Terrorists as it's very very difficult to track those who trade in them. 
So...if you want to contribute to the TERRORISTS...go ahead and invest in BITCOIN. 

Having said this...Cryptocurrency could become legal going forward and could come under regulation but till then I follow the principle of 
A BIRD IN HAND IS WORTH MORE THAN 2 IN THE BUSH!!



For me, BITCOIN is a game of GREATER FOOLS THEORY. 
Someone buying only in the hope that there will be another person who will PAY MORE for it and this cycle as long as it's running the dance goes on. 
The moment the music stops we may well see LOTS OF BLOOD on the street.

Please understand this...
1.  There is no economy behind Bitcoin.
2.  There are no regulators on Bitcoin.
3.  There is nothing to justify the value of Bitcoin.

BITCOIN NOT YET ACCEPTED 
Someone said Bitcoin is now accepted at many places!
Seriously?
after 10 years of launch, out of 6,20,907 restaurants in USA, only 85 accept Bitcoin, and you call this Acceptance !!



TOO MANY SCAMS : 

https://www.businesstoday.in/latest/trends/turkish-crypto-exchange-founder-flees-with-2-billion-of-investors-assets/story/437404.html

https://www.cnbc.com/2021/05/17/elon-musk-impersonators-stole-more-than-2-million-in-crypto-scams-.html

https://www.cnbc.com/2021/05/18/colonial-pipeline-hackers-darkside-received-90-million-in-bitcoin.html

The above 2 are just small examples...there have too many scams

Yes....scams are there even in stock markets. but at least we have SEBI, RBI, Finance Ministry who get involved and help the investors. 
But where will the Crypto investors go?
Whose door they will knock if there is a scam?




MESSAGE TO MY FRIENDS WHO WANT TO INVEST IN BITCOIN :  

Do not get trapped by FOMO. 
Just because people known to have put money in Bitcoin, doesnt mean...you too should.
Always implement JOMO and never FOMO. 

You seem to be trapped in the FOMO syndrome ....FEAR OF MISSING OUT...This is where the majority of people lose money...
The cream is already gone...who knows what's in store

Remember the Japan Stock Market...
It has still not touched its Life Time High even after 3 decades !!!
You could just get trapped in exactly such a case. 

If you look historically at the price of bitcoin, there have been a number of occasions where it's really spiked and then comes crashing down really quickly
While that can mean big returns, it can also mean big losses.



What matters is our Financial Goals
If we are able to achieve our Financial Goals with Equities, Gold, debt, and the like with a fraction of volatility and a fraction of tension...why should I think of Bitcoin. 
I have always believed in the adage STOP PLAYING WHEN YOU WIN THE GAME. Period. 
Remember, the purpose of INVESTING is 
REACH OUR FINANCIAL GOALS WITH AS LITTLE RISK AS POSSIBLE 

Why put money in something which goes up by 10% and falls by 30% due to a single tweet!!
If this is not speculation...then is this investment!

Yes...some people have made money in Bitcoin. 
People have made money even in Casinos
People have made money even in Races 
That does not make Casinos and Races a place to INVEST. 
They are good for Gambling. The same goes for Bitcoin. 
Bitcoin is good for GAMBLING and definitely not for Investment. 



Relax. 
Play a game of Pokemon Go or Angry Birds and enjoy the weekend. 
Let's talk about some REAL investments next week!

Let the excitement settle...
Let the regulations set in place






As I said...numbers can be presented as one wants.
Attention seeking is the name of the game.
Do not fall into such a trap.
If you think I am old-fashioned....SO BE IT


IGNORE THE HEADLINES.
STICK TO THE BASICS
STICK TO YOUR FINANCIAL PLAN.
STICK TO WHAT YOUR MUTUAL FUND DISTRIBUTOR TELLS YOU.


He knows what funds fit into your risk profile, time horizon.

Good luck,
Regards,
Srikanth Matrubai




Finally what some experts have to say about Bitcoin
Warren Buffett 
"Cryptocurrencies basically have no value and they don’t produce anything…In terms of value: zero. I don’t have any cryptocurrency and I never will,” 

Raghuram Rajan "Bitcoin is a classic bubble. why are people buying Bitcoin, because they think it will go up. And that is bubbles thinking"

American economist Nouriel Roubini on May 19 criticized the institutional investors who invested in volatile pseudo-asset 'Bitcoin' which according to him has no intrinsic value. He also sought that those investors be FIRED ON THE SPOT !!

Rakesh Jhunjhunwala "I won't buy Bitcoin even for $5. In the world, only the sovereign has the right to create currency. The dollar move of 1-2 percent is news but here the fluctuation is 10-15 percent in a day, hence the speculation is the highest,” 
He further added that “I don't want to join every party in the town. You should go to the party which you like. I will never buy Bitcoin in my life. cryptocurrencies should be banned.”








All the best,
Regards,
Srikanth Matrubai
MUTUAL FUND DISTRIBUTOR
REBALANCE VOLATILITY CERTIFIED COACH
Srikanth Matrubai, Author of the Amazon Best Seller DON'T RETIRE RICH


You are strongly encouraged to consult your financial planner before making any decision regarding this investment. The views expressed here are the author's personal views and should not be interpreted as a recommendation to invest/avoid.

 
Srikanth Matrubai Author of the Amazon Best Seller DON'T RETIRE RICH

Do read the book and give your valuable feedback and request you to post positive comments on Amazon. https://amzn.to/3cHUM6M/ 

You can purchase the book on Amazon and Flipkart 

For the best of ideas on where to invest to create Mountains of Wealth 
join my TELEGRAM channel
WEALTH ARCHITECT
    https://t.me/joinchat/AAAAAELl4KUnaJzi-JJlDg/

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