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Global Fund Investments: A Chance to Write Your Growth Story

July 12, 2023

If you are planning a trip to Italy, what would be your itinerary? You would look for the perfect time to visit as per your preferences, depending on your unique interests and desired destination.

While investing in global fund investments, your investment horizon and risk profile are equally important, which involve choosing the right combination of asset classes and analysing your goals. It is advisable for any investor to remember two crucial factors: diversification and asset allocation. A balanced risk-reward ratio can be achieved by investing in a variety of asset classes and diversifying your portfolio.

At first glance, global fund investments and foreign trips may appear to be unrelated topics. When you look closer, an intriguing correlation between the two becomes apparent. You tend to search online, watch videos, follow a few social media channels, discover major tourist attractions, etc. to get the idea of that place you are travelling. 

While investing in global funds you need to gain valuable insights into the interconnectedness of the global economy and discover how your financial decisions can impact your financial goals in the long-term. Expanding into international markets can be a challenging endeavour. 

Discover the essential steps to take before investing. Investing in international funds requires crucial steps:

  • Research – Without it, you may be putting your investments at risk. Before entering a new market, it’s crucial to gain a deep understanding of its unique characteristics. Take the time to analyse prevailing trends, market dynamics, and consumer psychology to ensure success. By conducting a thorough analysis, you can determine the equities and funds that are poised for future success and allocate your funds accordingly.
  • Invest – Most people who wander around the world start with their own country. The same scenario applies to global fund investments. Once people have invested in well-performing mutual funds in India, only then they will prefer investing in international funds.

You need a passport along with a visa and tickets to board foreign flight. But, fortunately this is not the case with global funds. Investing in global funds and asset classes is just as easy as investing in domestic funds. You have the option to invest directly through an asset management company (AMC), an investment advisor, or through user-friendly online investment platforms.

Now, when investing in global funds, you need to consider the tax implications

  • Taxation – You can experience the same tax implications on international funds as you would on debt funds and maximise your returns by holding your funds for over three years. And this is not all, you can also enjoy the benefits of long-term categorization and a tax rate of only 20% post-indexation. You can unlock the power of indexation factors that consider the inflation rate during the holding period and seamlessly adjust the acquisition cost to get potentially maximum returns.

Conclusion

When you book tickets, people recommend taking advice from a trip advisor. The same implies in global fund investments: take help or guidance from a fund manager before you board a flight to international funds.

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The Synergies of an Ideal Cricket Coach and an Efficient Wealth Manager

July 7, 2023

The Cricket World Cup is just around the corner, and every team is willing to outperform other teams with end-to-end planning, strategy, and team performance. Cricket is played by only 11 players on the field, but a coach guides and nurtures the talented players behind the scenes. A competent wealth manager or advisor is no different. He provides guidance and expertise to individuals who are willing to achieve financial goals. There are some synergies between cricket coaching and wealth management as both require long-term planning, teamwork, and rational approach.

The Game Plans

A proficient cricket coach develops a plan of action while keeping in mind the strengths and weaknesses of each player. On the other hand, a wealth manager finalises a financial strategy based on your goals, risk tolerance, and investment horizon of the investor. It’s part of his wealth management solutions and expertise. Winning a single match in a big tournament won’t win you the trophy in the end; similarly, a wealth manager crafts a plan that increases the success potential in the near future. He doesn’t have a plan for one or two days or even weeks, he tends to plan for long-term goals of every investor.

An expert cricket coach knows the ins and outs of a player, whether he is a batsman, a bowler, or an all-rounder. He, along with the captain, finalises the team’s batting order, bowling preferences, and fielding positions throughout the game. Similarly, in wealth management services, wealth advisors figure out how to allocate investment classes such as stocks, bonds, real estate, etc. to create a diversified team.

Teamwork  

Cricket, or any other sport such as football, hockey, or even wrestling, is a team sport. Players need to abide by the plan and the coach and player(s) dedicate themselves to a common goal. He encourages effective communication and teamwork and helps players work on their strengths.

Parallelly, wealth managers closely work with their clients to make informed decisions. They take advantage of years of experience and expertise when it comes to guiding clients towards success. This is an effective pillar of a wealth management solution. A wealth manager looks for trends, economic indicators, and the client’s goals.

Long-Term Vision: Building Sustainable Success

A cricket coach’s priorities go beyond immediate success. They develop a pipeline for future success, develop young talent, and instil discipline. Similar to this, wealth managers and advisors take a holistic approach, considering long-term goals like retirement planning, wealth preservation, and to generate wealth, in addition to managing short-term financial needs.

Final Overs: The Verdict

Both wealth management services and cricket coaching place a strong emphasis on the virtues of perseverance, discipline, and patience. Just as a wealth manager or advisor helps clients navigate market fluctuations and financial challenges, a coach assists players in overcoming setbacks and learning from mistakes. By encouraging a long-term vision and imparting important lessons along the way, both professionals work to create sustainable success. 

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How to Enter the Galaxy of Early-Stage Companies through AIFs?

June 15, 2023

Humankind took a giant leap into space in the 1960s when we first landed on the moon, and recently our machines have touched the surface of Mars too. We keep discovering new aspects of our universe. But how? Before we plunge into the universe of stars and galaxies, it’s backed up by intense research and vision.

You need to access aspects such as gravitational force and pressure in the Earth’s atmosphere, and beyond that, scientists need to access these and more factors while taking the big leap. But they still don’t have any idea of the new surface or atmosphere, despite years of intense research.

The orbit of alternate investment funds

The story of alternate investment funds is no different. When you look to invest in early-stage companies through alternative investment funds, you need to analyse a few factors. When an astronaut approaches unknown territory, he or she should be cautioned. There are a few key factors you need to consider before investing in early-stage companies through investment funds.

Before launching a rocket into orbit, astronauts and engineers examine the potential of the rocket, whereas when investing in early-stage companies through AIFs, you need to assess the company’s business model, product, or service offering. Is the new-age company meeting market demand, or does it have the potential to grow in the future?

Every project needs experts, whether you need to explore the unhidden reality of outer space or manage a team when it comes to investing. An expert team will execute the business plan, make important and informed decisions, and come up with innovative solutions that will address a significant market need.

Now, your trip to explore a new planet or star will take time; it’s not a ‘quick return’. You need to have patience to face the challenges. While investing in the early stages of companies through alternate investment funds, you need to assess the barriers to entry, potential competitors, and the company’s ability to differentiate itself in the long run. Apart from this, you need to evaluate the company’s trademark, its position in the market, and its potential for future growth. Assess the company’s financial position and how it will manage its finances effectively.

Entering the orbit and landing on a planet is a different task, but exiting outer space and entering the Earth’s atmosphere you need to have a strategy for this task too. Understand the potential exit choices for your investment, whether the company has a plan for an initial public offering or is planning some other options. A good exit strategy is crucial to getting returns on your investment.

Last but not least, analyse the risk, whether you are launching your ship into an altogether different zone or investing in early-stage companies through alternate investment funds.

Conclusion

Keep in mind that there are no guarantees of success when investing in early-stage businesses due to the inherent risks involved. Investment diversification, due diligence, and being ready for a long-term investment horizon are essential. You can increase your chances of investing wisely in early-stage companies through AIFs by carefully weighing these factors.

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How to put up a great show with your mutual funds?

June 13, 2023

“Destiny is commonly believed to possess an element of human control that fate does not. We may be helpless against the inevitable trajectory of our fates, but our destinies can be moulded by the choices we make.”

Laurie G. Fisher

Have you ever been to a circus where many talented performers, musicians, and acrobats entertain you? But for an artist, it takes years of practice, concentration, determination, and hard work to master their performance. They have to follow certain traits and training exercises to reach the end goal of entertaining you to the fullest. Acrobats need to work on their stamina; dancers need to work on their moves; magicians need to enhance their tricks behind the curtain; and the list goes on.

But success doesn’t come to those who wait; you need to apply certain parameters, methods, or approaches to succeed, and the world of mutual funds is no different.

Investors can apply five key practices to maximise their mutual fund investments

1. Create a goal and invest accordingly

An artist plans their performance according to the target audience. There are different sets of audiences for every act. Successful investors begin their investment endeavours with specific objectives in mind, such as child education, marriage, personal retirement planning, etc. The creation of goals at the outset of an investment helps to determine how much money must be allocated to which types of funds in order to achieve the investment objective with the least amount of risk, tax, and exit burden implications.

2. Periodic review

A comedian was expecting that the audience would burst into laughter after his joke, but to his surprise, no one in the audience even smiled. But he came up with a follow-up line, and the audience burst into laughter. You, as an investor, need to keep track of which investments perform better and which are consistent performers. There may be changes in tax or changes in investment objectives; you might want to track your portfolio. An investor might do well to monitor his debt investments quarterly and his equity investments annually.

3. Patience

It takes time to be a master acrobat; they develop new skills with time and patience. An amateur artist cannot expect to get it perfect in a day or two. He can fail while attempting a new trick, but with patience, he could learn the art. Successful investors maintain their patience and allow the volatility phase to pass. Over time, the law of averages catches up, and the funds deliver the anticipated returns.

4. Comparison

You cannot compare a magician with a ringmaster. Both have certain strengths and different goals for entertaining the audience. Such is the case with mutual funds; they are suitable to serve financial requirements. For recurring expenses, mutual funds can also be redeemed in parts. On the other hand, real estate and gold provide the psychological comfort of owning wealth but are seldom used to fulfil financial needs.

5. Trust your financial advisor

A dancer needs to trust his trainer while learning the new moves, or he can be injured. Which emotion he needs to put on which step, either he needs to take a pause or carry on with the performance. A trustworthy financial advisor plays a key role in managing the client’s investments as per his goals, suggests corrective action if any special situation arises, guides the client when things are not progressing as expected, and inculcates financial prudence in clients on other money matters like loans.

Conclusion

Mutual fund investing is about discipline, patience, and simplicity. Investors would do well to give the above practices some thought and make them part of their personal investment process.

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Global Funds Investment – Need to know things before investing!

May 30, 2023

What would be like to invest in your favourite international brands? Apple? Amazon? Or perhaps Netflix? You can do so by investing in Global Funds. 

But before you dive into global fund investments, let’s have a look at things which you should know about global funds solutions.

Global fund investments are also known as international funds, and they enable you to invest in foreign stocks. You can begin your global fund investments in any international company that is based somewhere other than your country. You can adjust your global fund investment portfolio for better returns and reduced risks with more options for investing in foreign funds, just like domestic mutual funds.

Before you begin, think about the following:

1. Determine the risk – 

It is crucial to evaluate the risks connected to global funds investments. Studying a fund’s track record or historical performance for at least five years is the best way to determine how well it has performed internationally. Hiring a financial advisor is a good idea, despite researching a fund’s track record and you still cannot decide on it.

2. Choose an extended investment horizon – 

Experts noticed a long-investment horizon, meaning investors who held on to their funds for a long duration experienced significant capital appreciation. By long duration, it can be for 7 to 10 years. So, until a fund’s track record shows significant returns in the short term, we recommend investing in this instrument for at least a few years.

3. Check the fund’s expense ratio of Global Funds Investments – 

A fund’s expense ratio is somewhat like that fund’s maintenance charge. It’s a percentage charged from investors for administrative management of the fund. The higher the expense ratio, the bigger the cut you must pay on your return. So, when you are planning to invest in a global fund, view and compare its expense ratio to see whether it justifies the fund’s performance. Otherwise, choose a global fund with a comparatively low expense ratio, as the money saved will only boost your long-term capital appreciation.

4. Check if the fund is diversified – 

Global funds investment solutions may be only one type of equity mutual funds, but this category can invest in diverse asset classes like stock, bonds, real estate, gold, etc. The more diversified a fund, the lower your risk exposure.

Conclusion

In addition to these 4 things, you must also figure out if the global fund investments are owned and managed by a reputed fund house or asset management company. Therefore, before investing, check how diversified the international fund is. You can do so by conducting a search online or by asking a financial expert. It is advisable to contact a financial advisor.

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