Page 15 - mutual-fund-insight - Mar 2021_Neat

because of the virus that China
unleashed on the world. Those of
us who have many years of work
and earning left still had reason to
stay calm when the market crashed
at the beginning of the pandemic.
However, for anyone with just a
few years to retirement, it was truly
unnerving to see 20–40 per cent of
the value of investments wiped out
when you know that you will never
be able to earn it again.
As it is, one can be thankful at
the way India has handled the pan-
demic and the way investments
have recovered. However, this is a
great lesson in never taking the
future for granted. One’s invest-
ments must always be tuned to the
exact asset allocation and fund
selection that is ideally required.
We can never put things off by say-
ing, “Yeah sure, I’m a little busy
right now, but I will get around to
fixing my portfolio in a few
months.” Who knows what new
virus is already being prepared in
China? You have to be ready.
Which is fine, but how do you
know what to do? My acquaintance
just called me and mailed me his A screenshot of the Portfolio Analysis feature on VR Premium, depicting how this
username and password on Value feature helps you better analyse your portfolio and get actionable insights
Research. However, I decided to do it
a little differently from the way I case of my friend, the system gener- example, when making new invest-
would have done so in the past. ated a clear-cut list of funds that he ments in funds. However, when the
Instead of going through it and apply- should redeem and the ones he task at hand is to fix problems in a
ing my opinions and knowledge, I should hang on to. Combined with given portfolio, where some invest-
decided to apply the algorithms that the tax analyser which is also built ments are good, some are not and
we have built into our new Value into the system, he was able to see some are partly good, then the job
Research Premium service. exactly what he should do to drasti- is more complicated.
That’s something that everyone cally improve the quality of his To fix things, we must recognise
has access to, not just my friends investments. The liquidity analysis what is wrong. This turns out to be
and acquaintances. It works quite showed him which investments quite hard, not just for operational
simply, as long as you have activat- were locked in for any reason. reasons but also psychological and
ed your Premium membership. You business ones. No commercial
enter your investments into the A LAYER OF KNOWLEDGE sales-oriented process will admit to
Portfolio Analysis feature and in At the end of the day, knowledge its mistakes, and as individuals too,
just a couple of steps, you get an and understanding provide the many of us will not. However, a
analysis of all your investments on inputs and investing consists of system like the Portfolio Analysis
a range of parameters like suitabili- actually doing things. In some system in Value Research Premium
ty, quality and diversification. In the cases, this is straightforward; for is designed to do just that.

Mutual Fund Insight March 2021 13
Subscription copy of [sabareesan.nair@gmail.com]. Redistribution prohibited.