Page 14 - mutual-fund-insight - Mar 2021_Neat

-P_PUN TPZ[HRLZ

Admitting past mistakes and fixing them is important to making sure your

investments help you meet your goals. Here’s how Value Research can help.

Dhirendra Kumar income and it’s still easy to calcu- justifiable in our country. This
late and only a bit more difficult to hasn’t been helped by having had
n the maths you did in get right. However, real-life prob- some money unexpectedly locked
school, it was easy to solve lems are not like that. into the Franklin Templeton debt
an investing problem with An old acquaintance got in funds that have been the subject of
only one variable. If there are touch recently. He’s been following litigation over the last few months.
Itwo or three variables, then my advice in mutual fund invest- Now he has about two years left
the story is different, and for many ing over the last two decades but before he retires and would like to
of us, the story ended right there. somewhat intermittently. From time reconfigure his investments for the
Investing is just like that. Ask a to time, over the years, he and his final phase of his investing life. Up
simple question like I would like to family manage to get sweet-talked until now, for many decades, money
accumulate `50 lakh in 10 years, so by some salesperson and invest in was flowing into his investments
for what amount should I start a some hot fund that proves to be a but now the flow will reverse. It’s a
monthly SIP? It has a straightfor- problem. He also has a generally fundamental shift that makes the
ward answer, or at least an approxi- suspicious disposition towards right asset allocation and quality
mation. Add another variable in the businesses that he has to deal with, much more important. Moreover, a
form of inflation, or an increasing which, to be honest, is somewhat two-year horizon is about right to
start the reconfiguration.
This is a great lesson in never taking the future for granted. On top of that is the lesson

One’s investments must always be tuned to the exact asset learned from the down and up
cycle of investment values that we
allocation and fund selection that is ideally required. have seen in the last few months

12 Mutual Fund Insight March 2021
Subscription copy of [sabareesan.nair@gmail.com]. Redistribution prohibited.