Long Term Strategies and Asset Allocation

OutlookIndia

#OutlookEvents | At IDFC FIRST Bank presents Outlook Money 40 After 40, Nilesh Shah, Managing Director, Kotak Mutual Fund, emphasizes the importance of understanding your risk profile. Surviving short-term market fluctuations is key to long-term wealth creation. Whether aggressive, conservative, or balanced - your investment behavior defines your success. Asset allocation funds can help navigate volatility and deliver better returns over time.  #IDFCFIRSTBank #CelebrateRetirement #OutlookMoney40after40 #OutlookMoney #40After40 #FinancialPlanning

Transcript

00:00You have to survive in the short term to benefit in the long term.

00:06And to survive in the short term, you need to measure your risk appetite.

00:14How many people believe in you that we are aggressive investors?

00:22Now, answer your heart that when you got half-fall in COVID, did you invest or not?

00:30If you invested, then 100% you are aggressive investors.

00:35You know how to manage volatility.

00:37You can go to lunch. You won't learn anything from here.

00:43But if you were in that category of Dr. Sahib, who didn't need money, but got panicked,

00:51and converted a notional loss into real loss, then you are not aggressive investors.

00:57You are conservative investors.

00:58And conservative-aggressive, it's not a bad thing.

01:03I am medium-sized.

01:05Someone will be short, someone will be short.

01:09Someone will have blood pressure, someone will have diabetes.

01:13I have cholesterol.

01:15So, we are not good or bad.

01:18We just need to know who we are.

01:22Use the litmus test.

01:25If you have bought during COVID, in equity market, you are aggressive investors.

01:30If you sold during COVID, you are very, very conservative investors.

01:34And if you maintain your SIP, then you are average risk-taker.

01:40One question is, Nilesh, this is all very confusing.

01:46Everyone knows what they did in March and April, but they say, this is all very confusing.

01:53So, you will get the service of a private banker.

02:03But in India, mutual fund industry has a product called asset allocation fund.

02:09This gives you expertise of a retail investor, expertise of the fund manager.

02:19And fund manager keeps on dividing between debt, equity and gold.

02:22Over the last 5, 10, 15, 20 years, it has probably delivered a return which is better than what 99% of investors get.

02:34If you don't understand it, asset allocation fund fund, and then give the time.

02:44Let the fund manager do the allocation between debt, equity and gold.

02:49There will be undoubtedly ups and downs.

02:52But over a period of time, it will create enough value.

02:59Always remember,

03:02Na dherian vina lakshmi.

03:05Na soryan vina jaya.

03:09Na dhanen vina moksha.

03:12And na dhanen vina yash.

03:16Jab tak parakram nahin dikha hai, tab tak vijayi praap nahin hoti.

03:20Jab tak gyan, wisdom nahin ati, tab tak moks nahin milta.

03:27Jab tak dan nahin karenge, tab tak kirti ya yash nahin milta.

03:32और लक्षमी को प्राप्त करने के लिए सबसे ज़्यादा जरूरी है देरियर,

03:38लॉंग टर्म इन्वेस्टमेंट और डिसिप्लिन इन्वेस्टमेंट.

03:42हजारों साल पहले हमारे पूर्खे ये कहके गए थे,

03:47बस उसी को फॉलो करना है to overcome the volatility.

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