Here’s what’s going wrong with your investments!

“No matter how great the talent or efforts, some things just take time. You can’t produce a baby in one month by getting nine women pregnant.”
Warren Buffett

Your impatience is understandable.
Equity markets are spinning at a dizzying pace, there’s more chaos than order and lastly, you are yet clueless about how should you react in such a situation – worry because bellwether indices are going bonkers by the day or happy because your portfolio isn’t imitating the magnitude?

But just because a behavior is understandable doesn’t really make it rational.
A child may cry and yearn to get an extra helping of his favorite dessert – the behavior is understandable but is neither rational nor in his best interests. Similarly, you may be sweating with anxiety by simply reading the pink newspapers but instead of following the number one rule to make profits – “buy low, sell high”, you would still deliberate on doing the exact opposite; again an understandable but irrational behavior.

Here’s some trivia that will help you draw a parallel with what’s happening with your investments
The Chinese Bamboo is among the world’s tallest and strongest grass. But wait, this isn’t the most noteworthy aspect of the bamboo. Read on and you’ll be amused.

The bamboo requires a lot of nurturing and care with adequate water, fertile soil, high-quality fertilizers, and ample sunshine. But if you were to grow the bamboo, you would realize that despite all precautions and careful nurturing, the bamboo does not even peek out of the ground for four years!

Yes, even after persistent and diligent attention, you wouldn’t even have a bud to show for it for four years! But, in the fifth year, something astonishing happens –

The Chinese bamboo grows up to a height of 80 feet in only six weeks!
Does the seed simply lay dormant for the first four years and suddenly, in the fifth year, decide that it’s time to shoot up? Obviously not. The first four years were, in fact, crucial for the seed to develop its foundation and roots underground and make it strong enough to support the exponential growth in waiting.

Now, what would happen if you dug into the soil every month and took the seed out to inspect or simply dig it out in the second or third year losing all hope? A lot many things could’ve happened but there’s one thing that would definitely NOT happen – you would never be able to see the Chinese bamboo you’ve dreamt about.

Similarly, India has jumped ranks in the Ease of Doing Business rankings, GST refunds are being fast-tracked, the Insolvency and Bankruptcy Code has brought back significant capital back into the banking system, liquidity is being bolstered through several collaborative measures between the Government & RBI and another good set of developmental reforms are underway. Sure, the system and markets may seem dormant but there’s no reason to not believe that it’s simply strengthening the foundation to create a $5 trillion economy in the next five years.

To offer more context, 2016 was a year of major structural reforms and events including the RBI governor’s abrupt exit, demonetization and the GST proposition being tabled – the impact of which continued and reflected in CY 2017 only to be topped up with additional geopolitical uncertainties like the domestic elections and global trade wars. However, for the same period which laid grounds for a synchronized global slowdown, India continued to remain resilient.

To the naïve investor, an 11% CAGR would seem petty but ask any investment veteran and you will understand that it always is about the relative performance gave that an opportunity is only as good as it stands against the next best opportunity.

While the multiple squiggly lines in the above graph may seem overwhelming, all you need to focus your concentration on is the thick blue line (NIFTY) and how it has outperformed other developed and developing economies’ indices.

So, there is merit in sitting tight while the seed of an economic reform strengthens its roots underground and continue having faith until the economic bamboo spurts out of the ground. Meanwhile, it is strongly beneficial to step up systematic investment/transfer plan amounts and make the to sow as many seeds you can at a lower cost to benefit from the imminent growth.

Time in the market beats timing the market, any day!

Group health insurance

What is Group Health Insurance Plan?

The employer purchases a group or corporate insurance on behalf of employees. This is one of the key benefits received by employees from employers. At times, Group insurance health plans cover the family members of the employees.
Besides offering access to affordable health coverage services, it also benefits the employers for retaining the employees and gets tax benefits.

Key features of the plan:

  • Offers a cashless facility and direct settlement of the bills with the hospital.
  • Covers pre and post hospitalization expenses for a specific period.
  • Extends cover to critical ailments.
  • The policy also covers domiciliary expenses (Domiciliary Hospitalization – medical treatment for a period exceeding three days for illness/disease/injury which in the normal course would require care and treatment at a Hospital)
  • It provides cover for pre-existing diseases after payment of extra premium.
  • This plan may offer maternity benefits.
  • Daycare procedures covered.
  • Few insurance companies cover Non-Allopathic Treatments for a specified limit.


senior citizen coverage

What is Senior Citizen Coverage?

Getting old makes you see life from a different perspective. Health is the first companion that starts deserting along with it your hard-earned savings. A Senior Citizen Health Insurance assists such times. There are various health insurance plans, specially designed for senior citizens.
Health insurance for senior citizens is offered by different insurance companies to provide you financial security by covering all your medical expenses. Gifting health insurance to your aged parents is the best way to care for their needs.

Why buy health insurance for senior citizens?

  • They are more prone to illness
  • You buy a plan to ensure that medical emergencies are taken care of in a systematic and hassle-free way.
  • Unexpected health issues and money crisis makes aged people feel guilty, and they think they are like a burden to a family.


When push comes to shove: GoI does not shy away from doing what it takes

“Mood of doom and gloom is not going to help anyone. I am not saying we maintain a Panglossian outlook and smile at everything — I don’t expect people to smile away difficulty — but a mood of doom and gloom will not help anyone,”

-Shaktikanta Das
Governor, RBI

Desperate times call for desperate measures.

This has never been more than in recent times. With India staring at the incoming wave of a global slowdown, the two biggest forces – Ministry of Finance and Reserve Bank of India have decided to keep their long-standing feud aside and attempt to insulate India through growth-inducing measures, reforms, and policies.

Over the past couple of weeks, Nirmala Sitharaman had announced a slew of big-bang measures including rollback of the controversial surcharge on equity capital gains, intent to recapitalise public sector banks, dispose angel tax, fast-track GST refunds while the generally conservative RBI decided to move out of its comfort zone and pay out a surprisingly large sum of INR 1.76 lakh crore.

While these measures are expected to be instrumental in the economy, Finance Minister Nirmala Sitharaman chose to not wait for more data and in fact acted proactively by calling for another press conference late Friday this week with another set of surprises. Following are a few highlights of the announcements made during the press conference.


Key takeaways for investors:

We continue to maintain a stance that now is a good time to start accumulating through systematic plans with a medium-term horizon. The short-term outlook for Indian equities is that markets are expected to be highly volatile in the short term and offer massive wealth creation opportunity for investors willing to ride the tide and participate in the imminent recovery. Investors with a moderate investor profile and time horizon of 5+ years can choose to explore top highlighted funds in the multi-cap category.