In his investment classic ‘The Intelligent Investor’, Benjamin Graham makes distinction between two type of investors; the “enterprising” and the “defensive”. Enterprising investor devotes time and effort required for the selection of stocks, bonds and mutual funds that can generate higher than average market return. Defensive investor on the other hand lacks time or knowledge […]
Most investors are better off following defensive approach of investing
Benjamin Graham makes distinction between two type of investors in his investment classic ‘The Intelligent Investor’; the “enterprising” investor who is willing to devote time and energy to continually research, select and monitor a dynamic mix of stocks, bonds or mutual funds, and the “defensive” investor who places chief emphasis on avoidance of serious mistakes […]
Why average investors don’t stick to basics of investing
After years of reading, studying and exploring personal finance and investing, one arrives at few basics of investing. These basics are simple, easy to understand and can be written on a single piece of paper. Therefore after learning about them, it is quite natural for a person to think that he knows enough of investing and […]
Some of the basics and practicalities of investing I have learned
Majority of errors in investing stem from not understanding basics of investing and straying away from them. While it is still possible to make money in the market without following basics either through special insights or out of sheer luck, retail investors and majority of advisers better not hope to have either. Investment basics are […]
My Story
My story was also showcased on freefincal.com under "Fee-only adviser journey". Here is the link to freefincal article https://freefincal.com/fee-only-advisor-journey-swapnil-kendhes-successful-transition-into-a-sebi-ria/ "Past events always look less random than they were. I would listen to someone's discussion of his own past realising that much of what he was saying was just a backfit explanation concocted ex post by [...]
Flaw in advising aggressive equity allocation to all young investors
It is conventional wisdom among financial advisers that young investors should have aggressive equity allocation of 70-90% since they have longer time horizon. A long-time horizon gives young investors much needed staying power which is essential for equity investing. While time horizon is an important factor in making asset allocation decisions and the rationale behind […]
Bad sequence of return
Much is said and written about the risk of inflation and how equity allocation in the portfolio can help protect and increase purchasing power of money. More and more investors are waking up to the necessity of having equity in their portfolios. Equity Mutual funds are increasingly becoming preferred choice of investment for retail investors. […]
Why Flat Fee Only Model of Advisory (from an Adviser’s perspective)
Commission selling is financially more rewarding for advisers than flat fee only model of advisory. It also brings awards, rewards and appreciation for advisers within ever growing agent and adviser community. Flat fee only model which is in its nascent stage in India, offers none of this. People like me, who are choosing flat fee only […]
When advisers look stupid for doing the right thing
Equity is an unpredictable asset class that doesn’t give the returns you want, when you want. It is also terribly difficult to predict equity returns in the short term. Therefore, when time horizon of the investment is less than 5 years, many advisers recommend investors to keep majority of their money parked in debt and […]
Why future is unpredictable
The world of finance is like an ocean. You can never know everything that is there in it to know. You try to read and learn about it through books, blogs, articles and videos. But more you know, more you realize how little you know about it. There is an immensely complex system out there […]