Facebook TwitterLinkedInYoutubewhatsapp Start Planning for your Financial goals
Schedule Your Free Consultation
  • Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
Holistic investment planners, financial planning Chennai, Private wealth management Chennai

Holistic investment planners, financial planning Chennai, Private wealth management Chennai

Financial Planning chennai India, Private wealth management chennai India, Investment Advisory India, Systematic Investment Plan, Mutual Fund SIP, Mutual Fund ELSS, Tax Saving scheme

  • Home
  • About Us
    • Who we are & What we do
    • Services
      • Financial Road Map
      • Retirement Roadmap
      • Asset Allocation Plan
      • Webinar
      • Money Management
      • Wealth Management
    • In the Media
    • Testimonials
    • What Makes Us Different
    • How we can help you
    • Specialties
    • Honors and Awards
    • Vision & Mission
  • Resources
    • Blog
    • Articles
    • Podcast
  • Ideal Client
  • Contact Us
Want to prosper as an investor.Discover where to keep your focus

Want to prosper as an investor? Discover where to keep your focus

by Holistic Leave a Comment | Filed Under: Investments

Listen to this article


This article will help you find what to focus on and where not to focus to become a successful investor.

Table of contents

  • What gets noticed?
  • What goes unnoticed?
  • Don’t focus on things you can’t control
  • Focus on things you can control
  • Focus on reducing the risk
  • Bottomline

Usually, there are a few things that get noticed by investors.

What gets noticed?

A few of them are listed below:

👉 Franklin India Bluechip Fund will be completing 27 years since its inception. 1 lakh investment at its inception is worth Rs.1 crore today.

👉 HDFC Bank completed 25 years since its IPO in 1995. 1 lakh investment in IPO is worth Rs.8 crores today.

These are the things that get reported and are easily noticed by the investors.

But now let’s see what goes unnoticed.

What goes unnoticed?

What do you think goes unnoticed? Let’s check.

The investor has endured

  • Multiple recessions
  • Political instability
  • Market fall
  • Negative news

for about 25 to 27 years. This is what people usually fail to notice. The ups and downs the investors have been through and their patience and persistence throughout these many years.

So what should you do?

Don’t focus on things you can’t control

What are they?

  • GDP
  • Foreign policies
  • Election results
  • Macros
  • Market

These things change over time. So focusing on these things doesn’t help.

So what should you focus on?

Focus on things you can control

What are they?

  • Savings
  • Asset allocation
  • Discipline
  • Behavior

“The essence of risk management lies in maximizing the areas where we have some control over the outcome while minimizing the areas where we have absolutely no control” — Peter Bernstein

Staying a course of 25 to 27 years takes a lot of patience. You have to wait. For this, you need a lot of effort. Consciously you should prepare yourself, you should discuss with your investment advisors and get the comfort of your investments. It takes a lot of maturity from your side.

A lot of people talk about Warren Buffet as a good investor, that he has a lot of logic and a way of doing things. But what gave him wealth? It is not his IQ but his temperament.

“A lot of people with high IQ’s are terrible investors because they’ve got terrible temperaments. You need to keep raw, irrational emotion under control.” – Charlie Munger

What are the other things you should focus on controlling?

Focus on managing the risk not on chasing the return

Don’t focus on chasing returns but rather try to manage risk because this is under your control. Returns are not under your control.

“The essence of investment management is the management of risks,
not the management of returns.” –Benjamin Graham

For example: When an investor invests in a mutual fund scheme, he selects it based on rating by media or rating agency. But the facts and reasoning behind it are not checked.

When a rating agency rates a mutual fund, how do they rate it?

They check only the quantitative parameters and give the rating.

How the particular fund is performing?

How the respective index is performing?

How the average category is performing?

These three are fed to an algorithm: fund performance, index performance, and average category performance. Based on these three, they do a lot of statistical analysis, and based on that they give rankings and select schemes.

What is the problem with these rankings?

Choosing mutual funds schemes to invest based on ratings or only quantitative analysis will reduce the risk to one level. There is more scope to reduce risk and increase the margin of safety.

The problem with these rankings is that they are backwards-looking mechanisms. Based on the past data they give rankings and so there is no clue that they will perform in the future as well.

Mutual fund rating companies can change their rating every quarter, as an investor you cant change your investments every quarter. You will want to have it for a couple of years or decades together, you need those kinds of investments.

So what’s the problem with quantitative analysis?

Quantitative analysis should be done but the qualitative analysis should also be done. You shouldn’t stop with quantitative analysis but go beyond quantitative analysis.

Why apply qualitative analysis?

There can be few funds that came to the rating because of mistake or by luck.

For example, there is an average large-cap fund that has performed and has given average returns. Then the fund house hires a fund manager and he gives good returns within 6 months. It is an intense performance and it becomes a good story for all media houses and investors. It gets into the ranking. He gets an offer from another company and so he leaves the company. The fund house will now not be able to repeat the performance. As an investor, you would have invested before or after he went off.

For rating agencies, statistical numbers and quantitative analysis are important, and not whether the fund manager is moving in or moving out. No weightage is given for that, because of that they don’t downgrade the rating. So based on past performance they rate and you go ahead and invest, after that you see less performance. All media were talking about that fund, the rating was also good, you went ahead and invested. Now it’s not performing, no one is talking about that fund. All are talking about a different fund.

In another case, there is an old fund manager. He was managing a fund for a long time. When revamping a portfolio, he chooses 2 stocks by mistake, instead of choosing 2 other stocks but by luck those 2 stocks became multi-baggers and the portfolio gives returns. The media reports about this fund, all of a sudden delivering returns but the fund manager will not be able to repeat the performance. Again this gets ranked. You go invest and you suffer, no one talks about that particular fund after 6 months.

What is the problem here?

When you stop with quantitative analysis, these kinds of funds can also get ranked. So to make it tougher you have to use another filter called qualitative analysis.

There are many of them. One of them is the ability of the mutual fund company to retain the fund manager. An algorithm won’t be able to check this.

1. A mutual fund with an investment process:

In this, the fund manager has to follow the investment process and deliver returns.

2. A mutual fund without an investment process:

Here the fund manager has no restrictions. He can deliver good returns if he is in good form and is capable. If he loses form in some phases of the market, nothing can put him back to the form.

But a mutual fund with an investment process can put him back to the form. He has to follow the investment process, go through the approval mechanisms. Even if he has to leave the company, the new fund manager will be able to easily check this.

On what basis the earlier fund manager has constructed the portfolio?

What are the parameters?

What approval mechanism he has to go through?

When he has to sell the portfolio?

Everything will be clear to the fund manager. That way it’s easier for the fund manager to take over and manage the funds. This gives a lot of cushion to the investors, whether he goes out of form or out of the firm. It is easier for the fund house to manage challenges.

3. Mutual fund companies who claim to have an investment process:

These Mutual fund companies claim to have an investment process and use it during their sales presentation but do not strictly follow it. An algorithm will not be able to differentiate these things.

Hence you should apply both quantitative and qualitative parameters to reduce the risk. Usually, only quantitative parameters are used, but when qualitative parameters are also used as a second filter, it helps reduce the overall risk.

Bottomline

Do not worry or be bothered about what the rest of them are doing as it is not going to help you. Don’t focus on things you can’t control but the things you can control.

Whatever methods you use to pick stocks, your success will depend on your ability to ignore the worries of the world long enough to allow your stocks to succeed. No matter how intelligent you are, it isn’t the head but the stomach that will determine your fate. – Peter Lynch

Have you started focusing on things that you can control? Have you started focusing on reducing the risk?

If you have any comments or questions, write them in the comment box below.

Or are you interested in creating a Comprehensive Financial Plan for your financial goals?

Skip the queue by registering for your 30 Minute FREE Financial Plan Consultation. Click the ‘‘BOOK YOUR SLOT NOW!’’ button below. 

Reader Interactions

Previous article: What should you look for when investing in an IPO?
Next article: Nilesh Shah Talks on Investing During and After Covid-19

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Client Login

Recent Posts

  • Tata AIA Life Insurance Wealth Pro Plan Review: Good or Bad?
  • Bajaj Allianz Life Smart Wealth Goal – Wealth Variant Plan Review: Good or Bad?
  • Max Life Savings Advantage Plan Review: Is It a Good Investment Choice?
  • Tata AIA Life Insurance Fortune Guarantee Pension Plan Review: Good or Bad?
  • HDFC Life Smart Woman Plan Review (2023): Is It Worth Investing?
Jey S
Jey S
24. September, 2021.
I have been using Holistic Investment Planners for the last three years. Mr. Srinivasavaradhan answered all my questions and doubts very patiently during the first free consultation. I was able to clearly define my short-, medium- and long-term goals once I signed up for the comprehensive plan and got their investment plan suggestion to achieve my goals. They are very polite and highly professional whenever I contact them for any queries or make investments. They never pressurize you to invest on their recommended financial products. I would have been lost money by investing directly without their help since I do not have time and knowledge about different financial products. Risk planning is also done as part of financial planning. Truly, they are holistic planners when it comes to your financial planning. They help you to define your life goals, understand your financial resources and establish a plan to invest towards reaching those goals. They do review your plan as you progress to make sure that you are on correct path to achieve those goals. Kudos to the team and keep up the good work!!! I am happy that I found holistic investment planners for my financial planning and management.
aksaswadkar
aksaswadkar
24. September, 2021.
I was about to retire and really not understanding how to invest money to have financial freedom and fulfilling my goals. Was desperately searching on internet way out and fortunately came across Holistic Investment Planners. I read number of articles on their website and realized that this is the agency which I want and engaged their services for my retirement planning. It is an excellent experience to be associated with Holistic. Right from day one our interaction was fantastic and they gave me such a wonderful plan that I had never imagined. I am fortunate enough to be in the client list of Holistic. I have recommended Holistic to my friends as well.
Lionel Faber
Lionel Faber
16. September, 2021.
I've been availing their services for the past year. They are highly knowledgeable in the field and are very patient with all doubts and queries. Personalized financial planning is provided keeping your short term, medium term and long term goals in mind. They do not pressurize you to purchase schemes of their choice. They provide their input and suggestions and leave the decision up to you which shows their honesty and high principle.
Sridhar
Sridhar
8. September, 2021.
Financial planning brings peace in life. Holistic Investment have supported in arriving financial plan based on future goals. My investments are regular since then. They are professionals in their business, will recommend others.
Nitesh Agrawal
Nitesh Agrawal
6. September, 2021.
I have been using Holistic Investment Planners from last one year. The journey has been fantastic. Being a finance person myself I always thought we can look after and plan own finances also. However, due to lack of time and deciplain the things are not always as desired. After joining with Holistic Investment for the first time Icame to know the Financial goals and quantified them. Some dreams were unrealistic based on the earnings and savings so had a reality check. Also got the information and deciplain of investing on regular and more rewarding securities. I definetly suggest to use Holistic Investment Planners. They are professionals, available and hear youor full story before presenting plans. They are flexile in the sense if there are some urgent deviations required, they help to plan the same. For all professionals/individuals I would suggest using professional help of Holistic Investment Planners for best results in long term investment and financial goals achivements. Last advise will be to start early in your life. It really pays well to start in the beginning itself else the dreams needs to adjust :)
Swetha Vasanth
Swetha Vasanth
6. September, 2021.
This is my first year service with the Holistic Team and I would say that they are very much helpful in creating a financial plan and follow ups during the year. I would definitely suggest them if anyone who is willing to proceed with their savings professionally.
Joseph Mathias
Joseph Mathias
6. September, 2021.
I came to know about Holistic Investment Planners online while searching for different investment ideas. Once I contacted them the journey was very smooth. Mr. Ramalingam explained all the aspects of Financial planning in detail and it opened my mind. I realized how important it is to have a Financial planning. Mr. Rajan suggested all the requirements as per my goals and made a Investment plan keeping in mind of my goals. I started my Investment journey with them. I wish I had done it some years back then it would have been in a different level. Review meetings were held every six month to check the implementation of the plan and check the results as per the requirements and to check if any changes required. Overall it was a good experience with Holistic Investment team and would like to continue in the years to come.
Srinvas Kannan
Srinvas Kannan
30. July, 2021.
I came across Holistic investment planners almost 5-6 years back, but I did not have the trust since I had met a few of them who did not sound promising. Then I started investing through a financial advisor of my friend. After 4 years of investing the returns were very low. I was disappointed and started looking for financial advisors when I came across Holistic investment. I had a detailed discussion about my goals and the way they would approach achieving my goal before deciding to switch my investments to them. After a thorough analysis of my then existing portfolios, they suggested new ones and we zeroed-in on 6 schemes/funds where our investment would be split. I am glad I made the decision of switching over and taking Holistic planner's advise, my returns are handsome and I only wish I could have taken their help/advise 5 years back itself. Neverthless, I would like to recommend their services for investment and financial advise if someone is serious about their investments.
Shivaram Andiappan Selvaraj
Shivaram Andiappan Selvaraj
3. July, 2021.
I got a free first time consultation. I got my doubts resolved. They also gave additional advises for investment planning which was also useful.
Nellai B
Nellai B
26. June, 2021.
I have been associated with them for the past three years. They are very professional and polite in answering all our questions. I have complete trust in their suggestions. I strongly recommend for anyone. I am looking forward to have strong and successful association with them.
Google rating score: 4.4 of 5,
based on 61 reviews

Google Reviews

Jey S
Jey S
24. September, 2021.
I have been using Holistic Investment Planners for the last three years. Mr. Srinivasavaradhan answered all my questions and doubts very patiently during the first free consultation. I was able to clearly define my short-, medium- and long-term goals once I signed up for the comprehensive plan and got their investment plan suggestion to achieve my goals. They are very polite and highly professional whenever I contact them for any queries or make investments. They never pressurize you to invest on their recommended financial products. I would have been lost money by investing directly without their help since I do not have time and knowledge about different financial products. Risk planning is also done as part of financial planning. Truly, they are holistic planners when it comes to your financial planning. They help you to define your life goals, understand your financial resources and establish a plan to invest towards reaching those goals. They do review your plan as you progress to make sure that you are on correct path to achieve those goals. Kudos to the team and keep up the good work!!! I am happy that I found holistic investment planners for my financial planning and management.
aksaswadkar
aksaswadkar
24. September, 2021.
I was about to retire and really not understanding how to invest money to have financial freedom and fulfilling my goals. Was desperately searching on internet way out and fortunately came across Holistic Investment Planners. I read number of articles on their website and realized that this is the agency which I want and engaged their services for my retirement planning. It is an excellent experience to be associated with Holistic. Right from day one our interaction was fantastic and they gave me such a wonderful plan that I had never imagined. I am fortunate enough to be in the client list of Holistic. I have recommended Holistic to my friends as well.
Lionel Faber
Lionel Faber
16. September, 2021.
I've been availing their services for the past year. They are highly knowledgeable in the field and are very patient with all doubts and queries. Personalized financial planning is provided keeping your short term, medium term and long term goals in mind. They do not pressurize you to purchase schemes of their choice. They provide their input and suggestions and leave the decision up to you which shows their honesty and high principle.
Sridhar
Sridhar
8. September, 2021.
Financial planning brings peace in life. Holistic Investment have supported in arriving financial plan based on future goals. My investments are regular since then. They are professionals in their business, will recommend others.
Nitesh Agrawal
Nitesh Agrawal
6. September, 2021.
I have been using Holistic Investment Planners from last one year. The journey has been fantastic. Being a finance person myself I always thought we can look after and plan own finances also. However, due to lack of time and deciplain the things are not always as desired. After joining with Holistic Investment for the first time Icame to know the Financial goals and quantified them. Some dreams were unrealistic based on the earnings and savings so had a reality check. Also got the information and deciplain of investing on regular and more rewarding securities. I definetly suggest to use Holistic Investment Planners. They are professionals, available and hear youor full story before presenting plans. They are flexile in the sense if there are some urgent deviations required, they help to plan the same. For all professionals/individuals I would suggest using professional help of Holistic Investment Planners for best results in long term investment and financial goals achivements. Last advise will be to start early in your life. It really pays well to start in the beginning itself else the dreams needs to adjust :)
Swetha Vasanth
Swetha Vasanth
6. September, 2021.
This is my first year service with the Holistic Team and I would say that they are very much helpful in creating a financial plan and follow ups during the year. I would definitely suggest them if anyone who is willing to proceed with their savings professionally.
Joseph Mathias
Joseph Mathias
6. September, 2021.
I came to know about Holistic Investment Planners online while searching for different investment ideas. Once I contacted them the journey was very smooth. Mr. Ramalingam explained all the aspects of Financial planning in detail and it opened my mind. I realized how important it is to have a Financial planning. Mr. Rajan suggested all the requirements as per my goals and made a Investment plan keeping in mind of my goals. I started my Investment journey with them. I wish I had done it some years back then it would have been in a different level. Review meetings were held every six month to check the implementation of the plan and check the results as per the requirements and to check if any changes required. Overall it was a good experience with Holistic Investment team and would like to continue in the years to come.
Srinvas Kannan
Srinvas Kannan
30. July, 2021.
I came across Holistic investment planners almost 5-6 years back, but I did not have the trust since I had met a few of them who did not sound promising. Then I started investing through a financial advisor of my friend. After 4 years of investing the returns were very low. I was disappointed and started looking for financial advisors when I came across Holistic investment. I had a detailed discussion about my goals and the way they would approach achieving my goal before deciding to switch my investments to them. After a thorough analysis of my then existing portfolios, they suggested new ones and we zeroed-in on 6 schemes/funds where our investment would be split. I am glad I made the decision of switching over and taking Holistic planner's advise, my returns are handsome and I only wish I could have taken their help/advise 5 years back itself. Neverthless, I would like to recommend their services for investment and financial advise if someone is serious about their investments.
Shivaram Andiappan Selvaraj
Shivaram Andiappan Selvaraj
3. July, 2021.
I got a free first time consultation. I got my doubts resolved. They also gave additional advises for investment planning which was also useful.
Nellai B
Nellai B
26. June, 2021.
I have been associated with them for the past three years. They are very professional and polite in answering all our questions. I have complete trust in their suggestions. I strongly recommend for anyone. I am looking forward to have strong and successful association with them.
Google rating score: 4.4 of 5,
based on 61 reviews

Footer

  • Articles
  • Gallery
  • Ideal Client
  • Jobs(Full Time)
  • Podcast
  • Services
  • Testimonials

Connect With Us

Holisticinvestment.in
10/15, Second Cross Street,
Seethammal Extn.,
Teynampet,
Chennai – 600 018,
INDIA.

Copyright © 2022. Holisticinvestment.in | All rights reserved.    Cared with ❤ by T-Square Cloud

×