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Bitcoins and Blockchains are the most talked about topics globally. The newspapers are flooded with updates on the Bitcoin rally, anecdotes of how people made millions in this rally, columns on how you can make money in Bitcoins are visible all around.

Bitcoin, the undisputed king of cryptocurrencies took off in the year 2009, priced at $0, however the real adventure began only lately. Bitcoin started with a little less than a 1,000 dollars in January 2017, and touched a little less than 18K dollars in Dec 2017. It has tripled over the last two months alone, from 5.5K in mid October to 17.5K in mid December. This steep rally and the hype has left people wondering “I wish I had a Bitcoin”, it has left us with a feeling of regret, why didn’t we invest earlier; of envy, because someone else made money while we didn’t; of greed, we wish to make make quick money by investing now; and of hope, we aspire for a repeat telecast of history.

Many of you might be wondering that why didn’t your advisor made you invest in a Bitcoin earlier.

You may argue that equity shares similar characteristics, equity prices can witness quick rise and fall and still you invest in Equity. But the answer to this lies in the basic difference between a stock and a Bitcoin. The price of stocks is not merely a matter of market sentiment, but it’s backed by the company’s fundamentals, it’s profits, it’s assets, liabilities, it’s management, it’s future prospects. While, Bitcoins do not have an inherent value, there is no underlying asset which backs the value of a bitcoin. They are traded in the virtual world. When a good stock falls, it is largely due to market volatility or a negative news, it’s generally a short term phenomenon, if the stock’s fundamentals are strong, you know it’s a matter of time before it restores to it’s normal course. But in the case of a Bitcoin, “you cannot be Sure”. You may buy today at $15,000, it can go upto $100,000, but it can take a U-turn also, it may fall to 10K, or 5K or 2K, it can even be the next tulip bulb bubble, and can be reduced to where it started from “zero”. We don’t know. Nobody knows.

Today, one of the primary reasons for the Bitcoin surge is the investors’ FOMO, Fear of Missing out. Fear of missing out the big opportunity to make quick money, the thrill, the extraordinary gains which their peers are making, of being foreign to the hottest word of finance today. The rush of emotions and inclination towards Bitcoin is obvious. That feeling of FOMO indeed is sickening. It’s normal that you are troubled for not having invested at the “Right time”.

But do you know, when the world of ace investors are at it, the biggest of all, Warren Buffet has taken a back seat. According to Buffet, “You can’t value bitcoin, because it’s a not a value producing asset.” It is impossible to value a Bitcoin. You don’t know whether it was expensive at $5,000 or cheap at $15,000.

Our word of advice for our investors is,

• Invest only when you understand the product. It’s foolish to base your investing decision on mere emotions.
• If you still wish to experience the thrill, set an amount you’d be okay to lose, the amount should be a very small percentage of your assets. Think you are going to a casino. Do not bet your life on it. Do not sell your investments and buy Bitcoins to overcome your FOMO. Great if it was your day, and you anyway had fun even if you lost.
• Distance yourself from short term trading, be it share trading or crypto-trading.

Bitcoin can emerge as the most powerful currencies of all times in the coming years, or it may be a bubble, the biggest of all financial bubbles, and you may not want to be a victim of it’s wreckage.

This article, as the name suggests is for those who start their retirement planning in the pre-retirement phase, in their 50’s. Since forever, financial planners, bloggers, investment forums, distributors, including us, have been propagating the importance of early retirement planning, yet the ideal has not been implemented by a vast majority of Indians. Now when the deadline is just around the corner, the idea of planning for retirement makes a sudden entry into the 50’s investor mind. The investor is late and Retirement Planning at this stage is a challenging task indeed, because firstly there is time crunch and secondly this is the time when you are converging towards the fulfillment of some of your life goals, you have grown up kids who might not be settled yet, kids’ weddings expenses, etc., are yet to be funded and at the same time you have to plan and provide for your retirement. So, no doubt it is back-breaking but every cloud has a silver lining.

The following paragraphs will acquaint you with how an investor in his 50’s should go about his retirement planning. You must note that planning the last 10 years will not land you in a similar position as you would have landed, if started one or two decades earlier, but yes with your efforts and commitment you can still be in a better plight in securing a comfortable retirement.

Assess your requirement, The first step in planning for your retirement is determining the amount you are going to need. This amount should be able help you maintain your present lifestyle post your retirement. It should be as specific as possible, and should be arrived at, after considering a number of factors such as, impact of Inflation, if your monthly expenses are Rs 40,000 presently and you are 55 years old, assuming an inflation rate of 6%, your monthly expenses will be around Rs 53,000 when you turn 60, they’ll go up to Rs 96,000 when you turn 70. So your retirement fund should be able to provide for your ever increasing expenses. Secondly, you must also consider Longevity, the average life expectancy of people has increased over the years, you might live another 30 or even 40 years. So your retirement fund should be adequate to last a very long period of time.

No flukes, no trial and errors, The time is such that you don’t have much time on your hand, to try your luck. The plan should be fool proof as there is no scope for mistakes. A small error can cost you big because you do not have much time to recover from a loss. Hence, as a first step you must approach a good financial advisor, who can rightly assess your needs, the time constraint and helps you devise a safe and goof-proof financial plan.

Save more, You are doing a 30 year job in 10 years, so you need to run really fast in order to cover up. The only way to achieve your goal is through saving extra. 50’s is the peak earning period for most people since they must have reached senior management positions or have established businesses, with some major life goals already achieved like a house, kids educations, kids marriages also in some cases. So you must be having or moving towards a stage with increased disposable income, this income should be saved and invested for your retirement goal. Track what you are spending on, try to cut unnecessary expenses because either you splurge now or survive later.

Create a second source of Income, To save more you have two options, one you can create a second source of income from your existing assets or you have to settle for a lower standard of living. You can explore a number of extra income options from within your existing asset base. For example, you have a two storey house, you can let out a floor on rent or can start a PG, and direct the extra income towards your retirement. Or you have a colossal bungalow, where you and your spouse are living, your kids have moved out, your parents are no more, so you can sell it or rent it out and move into a smaller space, thus saving a lot of maintenance expense every month, and it’ll be a huge contribution towards your retirement goal. A peaceful Retirement should be the priority, any asset which isn’t aligned to a goal, use it to strengthen your retirement kitty.

Low Risk not No Risk, The general principle is you should invest in risky long term investments and move towards safer investment options as you age. Follow the ideology but not stringently. If you invest your entire saving in low risk, low return investments, then your pace towards your target is like a drop in the bucket, you might never be able to reach your destination. Your retirement plan should be a combination of a 50 year old and a 30 year old. You need some exposure to equity since it will generate higher returns. The idea behind including equity is, although you are retiring within this decade but that is just the beginning of your retirement period, you won’t be spending your entire retirement corpus on Day 1 of your retirement. You can invest some amount in equity to sponsor your middle retirement years, like your 70’s.

Be debt free as soon as possible: If you have any Home Loan EMI’s or any other EMI’s running, try to get rid off them as soon as you can. Unassociate yourself from the high interest bearing credit cards. Offload the burden from your shoulders so that you can have more money at your disposal to save for your retirement goal.

Start working on your health, healthy people save more more because of lesser trips to doctors and lesser expense on medicines. You are entering a stage when you’ll be increasingly vulnerable to health problems, having your health by your side simply translates into having more money in your bank account. Also, Review your health cover, if you are a part of the family cover, take a separate and higher cover for yourself and your spouse. Any unexpected medical emergency can wreck your dream of living a comfortable life after retirement.

To conclude, Plan Now and Plan carefully if you want to avoid working till your last breath!

Retirement period is considered to be a new beginning for an individual. It is the time to unwind and pursue hobbies which you were not able to pursue due to lack of time during your working life.
Your post retirement period can be the most relaxing period of life after long working years, but also on the other hand, it will be a period when fresh income will stop and you will have to manage with whatever retirement corpus and/or pension you receive. With higher life expectancy, increasing cost of medical treatment and double digit inflation, life looks more challenging for a retired individual.

With urban Indian, the biggest challenge of retirement life is perhaps increasing life expectancy with advancement of medical treatment but coupled with rising medical costs and with private employment & lesser possibility of employer sponsored pension, we all may need to fund around 25 years of retired life from our own savings if we consider retirement age at 60 and life expectancy of around 85.

Interest earnings from debt / small savings have been the traditional source of income for retired individuals. Looking at the bigger picture, we find that typically, interest rates are high in underdeveloped and developing economies but in developed economies, they are relatively very low. Prudent economics encourage the government to bring interest rates down or aligned with market rates for government sponsored saving schemes like PPF, Postal Schemes etc. We have already seen a declining trend over the past decade in such products. With falling interest rate scenario, only debt retirement portfolio will not generate return sufficient to meet rising expenses during retirement period of 20-25 years. This leaves very little option for a retired individual to look for in terms of investment instruments which can generate inflation beating return.

Inflation: The crux of the problem
During working life, the inflation effect more or less get nullified as your income grows faster or in line with inflation rate but during retirement, inflation eats into your savings as you stop generating additional income. With stagnant and/or slow moving pension, inflation greatly increases the gap between expenses and cash inflow during retirement. This becomes very critical when we consider extended periods of retirement of over 20-25 years. So it becomes imperative that your portfolio fulfills either of the 2 conditions in face of rising expenses and falling interest rates:

• Your retirement corpus or any post retirement portfolio be of such huge size that all future expenses can be managed by earnings and withdrawals.
• Your planning focuses on both current earnings and also future growth of portfolio. Here you would need to generate inflation beating returns.

The Bucket Idea:
We can represent the entire portfolio planning exercise in a simplistic bucket concept. The simple rules of this idea are…

• Each bucket represents a different need/objective and aims to fulfill the same and one should evaluate it according to its objective
• One should not compare returns from each bucket in the same time frame as buckets would be for different time frames
• The buckets must consider your entire portfolio in all asset classes. Remember to plan your buckets with your financial adviser with proper disclosures.

Just to briefly state at the beginning, there are different baskets and you must choose baskets as per your own objectives and needs. To begin with, let us ignore the size of the basket as it would be explained later.

• Bucket 1: For emergency funds / short-term expenses /planned medical expenses
• Bucket 2: For generating earnings/income for meeting expenses – either by pure earnings or with capital withdrawals as option in rare cases
• Bucket 3: For ensuring portfolio growth and ensuring total ‘value’ of portfolio is kept intact even after inflation
• Bucket 4: For generating good wealth in long to very long term

Now we begin choosing the buckets, one at a time. Remember, that estimating the need and size of the bucket will eventually be the outcome of a thorough financial /portfolio planning with your adviser…

Bucket 1:
This is essentially your emergency fund for meeting any medical emergency or for upcoming /planned medical treatments, etc. The emergency fund should also cover your upcoming expenses for few months, say 3 at least, at all times. The emergency fund can be kept in bank or in cash though it is recommended that you keep only limited amount in cash if access to bank / ATM is convenient.

Bucket 2:
This bucket essentially is for generating returns /cash inflow for meeting your expenses. The objective here is to have regular flow of income ensured through interest earnings for the next 3-5 years at the upper end without facing any return/income fluctuations. This bucket is most important and must remain with you always such that projected cash inflow is always assured first.

Over the time, this bucket will lose value due to inflation and withdrawals, if any planned. With rising expenses, this bucket may need replenishment from time to time. Capital withdrawals should be avoided as far as possible especially if you are in the beginning years of retirement. Meeting expenses by withdrawals is recommended only when you are in later years of retirement / very old age as it comes at the cost of sacrificing future earnings.

On the other hand, in cases where there is good retirement kitty available, there can be a surplus cash generated over expenses. It is highly recommended to make proper use of this surplus and put it preferably in bucket 3 or 2, as may be required. Money can be withdrawn manually and with mutual funds, you can opt for Systematic Withdrawal Plans or SWPs with set frequency and amount.

Typically, fixed/regular interest paying debt instruments can be a part of this portfolio. It will predominantly be a debt portfolio and may comprise of PPF, Bank FD, NCD, Post Office Senior Citizen Savings Schemes, etc. In most cases, the size of this bucket would be the largest. Debt mutual funds are a very good match for bucket 2 as they offer great choice, comfort, features, liquidity, convenience and taxation advantages without any additional risks. There are products to match any investment horizon and one can choose from a wide variety of products to build a smart portfolio in debt mutual funds.

Bucket 3:
This bucket is for replenishing and/or generating additional value to your portfolio. The idea is to not let your total portfolio value decrease but grow especially in the beginning to middle years of your retirement period. You must gain more in long term in bucket 3 from what you lose on bucket 1 or 2 in terms of ‘real value’ after accounting for inflation. The size of this bucket would perhaps be the largest at beginning of retirement when you should plan for 20+ years of retirement ahead of you and start decreasing when you approach old age.

Typically balance funds or preferably diversified equity mutual funds can easily be put into this bucket. You can also add some component of gold here. With a horizon of 5+ years horizon at the minimum, this bucket should ideally create inflation beating returns.

Putting regular surplus savings, if any, into bucket 3 is a very good option as wealth can be generated without any big portfolio risk or volatility. Doing a mutual fund equity SIP from any surplus earnings from bucket 2 can be a very smart idea. One can also plan for Systematic Transfer Plan or STP from bucket 2 to bucket 3 using mutual fund products in both. An STP has similar advantages as SIP with difference that it is from an MF fund to an MF fund while in SIP it is cash being invested.

Equity is something that has the potential to deliver superior returns to inflation but only in long run. Exposure should be taken after your needs are safe bucket 1 and 2. Further, one must not lose sleep by seeing volatility in bucket 3 and if you are the one to loose sleep/ grow impatient due to market fluctuations, perhaps it would be wise to instead opt for peace and avoid investing in bucket 3.

As the idea is to also replenish bucket 2 by using bucket 3, one can shift money at regular intervals with adequate surplus value being realized. This can be an outcome of what the financial advisers often term as ‘portfolio rebalancing’. The quantum of withdrawal should be limited to matching the real value of bucket 2 and that which is essential to fulfill the objective of bucket 2.

Bucket 4:
Having the bucket 4 is purely optional. This is a purely aggressive asset class portfolio with clear objective of capital growth in long to very long term, say 8+ years at minimum. This bucket makes sense to be chosen only at the beginning years of the retirement and it is something that the retiree feels free to forget and not use any time soon. We are planning for a long retirement so having this basket does carry some sense.

Diversified equity mutual funds, mid-cap / small-cap equity funds, etc. can be kept in this bucket. One can again have the option of investing small lump-sum at retirement and/or preferably start an SIP or an STP from bucket 2. At regular intervals after say 5-6 years, one can start shifting money /appreciation from this bucket to your bucket 2. The size of the bucket would obviously be small and smaller than bucket 2 and 3. Further, this bucket is not recommended in old age.

Total Retirement Portfolio:
One can have any desired combination of buckets but the popular options can be as given below. The actual size and quantum of money can be determined only after proper financial planning / asset allocation exercise.

• Bucket 1 and 2: An extra safe option but comes at sacrifice of real value of portfolio. In future, earnings from portfolio may not be adequate to meet rising expenses. Recommended when you have a very comfortable retirement kitty or other source of income /support
• Bucket 1, 2 and 3: A balanced portfolio that has some scope for preservation / growth of assets to compensate fall in real value. Generally recommended for all who do not have a very comfortable retirement kitty and have to rely on portfolio for meeting needs even in older age
• Bucket 1, 2, 3 & 4: An aggressive portfolio. Recommended only if you do not have any sufficient retirement kitty and need to have good portfolio growth in long term to meet expenses in older age. Growth must never be opted at the cost of earnings safety in foreseeable future.

	Bucket 1 : 5-20% exposure Products: Cash / Bank Balance / Liquid mutual funds Horizon: Immediate / very short-term / short-term
	Bucket 2: 20-60% exposure Products: Debt mutual funds / Bank F.D. / small savings schemes Horizon: short to medium term (<5 years)
	Bucket 3: 10-40% exposure Products: Balance funds, diversified equity funds, Gold Horizon: long (5-10 years)
	Bucket 4: 0-20% exposure Products: Aggressive equity mutual funds / direct equity Horizon: long to very term (>8 years)

Buckets & funds summary

• Retirement kitty can be well invested in buckets 1, 2 & 3.
• Regular expenses / medical costs, etc. can be met from Bucket 1 & Bucket 2
• Filling Bucket 3 from Bucket 2: Investing any surplus earnings, SIP or by STP
• Replenishing Bucket 2 from Bucket 3/ 4: By STP / Switch / shift at regular intervals over time

The Asset Allocation:
A popular perception is that post retirement, we must keep all assets safely into debt. Though this is actually a sound theory, it does lack in addressing the bigger problems it might generate in long term. The idea must always be to do a thorough financial planning exercise to estimate the real needs and then define a proper portfolio with sound asset allocation into multiple asset classes like equity, debt, cash and physical assets during retirement years. The equity component has strong applications and can be effectively used to make your retirement planning more long term sustainable and rewarding.

Typically, the asset allocation would be skewed towards debt. The physical assets like gold would be optional for diversification and inflation hedge in medium to long term. The equity part would be for meeting growth objective over a long term since the expected post retirement period can extend 20-25-30+ years. The long term returns potential of equity has often been talked about here and the SIP route definitely adds extra safety and comfort into the asset. Thus, when it comes to portfolio planning post retirement, one must at least consider multiple asset classes and take exposure with proper planning as per the need.

Going beyond portfolio & buckets !!

• If you have not yet retired, try to get yourself health / medical insurance as soon as possible
• It is recommended that you keep all valuables /jewelery safe / in custody especially if staying alone. Take extra care of your physical security.
• One can enjoy retired life only if he/she is healthy and fit. Maintaining a good lifestyle with diet/yoga/walks/exercises can keep you fit and healthy and also keep those frequent medical bills away.
• One can look for extra income by way of paying guests / rent of property
• Reverse mortgage can be looked at in absence of any financial support/income if you do not wish or need to give ownership of property to any dependents after you in inheritance

Summary:
Every individual who is retired or is approaching retirement, would seek a steady income flow post retirement to meet expenses. With expected long retirement years, it becomes a challenge and hence the traditional way of thinking has to be changed and an active portfolio management with focus on both safety and future needs has to be considered. There is now less risk that can be taken compared to the accumulation phase to provide a greater sense of certainty that assets will continue to support a comfortable retirement. However, at the same time, there has to be some capital preservation and growth over the time, to ensure that income streams keep pace with the rising cost of living. Such objectives can be conflicting, with higher levels and a trade-off between returns and risk has to be made. The Bucket concept is nothing but a simplistic representation of building a smart portfolio post retirement.

After years of working hard we should all not shy away from retirement but accept it as a fact of life and the dawn of the golden years of your life with immense possibilities. One can seek many pursuits in life and be more socially, politically or spiritually active in life. In this phase of life, money carries less significance in life but even then it forms a critical aspect as one has to meet the basic needs and be self reliant in leading a dignified life. Irrespective of what age one is, retirement planning is very critical and the early you begin, the more comfortable and peaceful your retired life can be. We wish and sincerely hope that every one of us enjoys a healthy and peaceful retirement.

It’s been almost two weeks into 2018, you must be through with the Celebrations, with planning for the year ahead by taking up new New Year Resolutions, and with pondering over the past year, counting the learnings that 2017 brought for you and also with your goals and investments review process. Before you ascend on to your routine schedule, there might be one thing which needs your attention, and that is Planning and Investing for your taxes, the clock has started ticking, there are just three months to go.

Although, tax planning should ideally be done at the beginning of the year, in the month of April, you have enough time in hand to plan and break your investments over the year, yet many of us have still not kicked off the tax planning process. So, without wasting any more time, you must immediately get on to your Taxes.

Calculate your Tax Liability: Since there is already a time crunch, the plan must be a sure-fire to avoid making mistakes later. Hence, begin with estimating your annual income, you already have nine months’ numbers with you, so you are left with just three months’ to judge. Remember to include:

• any Annual Bonus that you are expecting,
• any Capital Gains or Losses through redemption of earlier investments or any imminent sale of assets
• Interest incomes from fixed deposits or for that matter, from saving accounts also
• Dividend Incomes, etc.

Expenses: Once you are through with the Income, try to cut it down by deducting the expenses eligible for deduction. Most people start investing in PPF’s and NSC’s randomly on the basis of their annual income. But you don’t need to always invest to save taxes. There are certain expenses which you have already paid for, and which can help you bring down your tax liability. The money you save by not investing can be directed to products which are more suitable for you, since then you won’t be limited by Section 80C. So, if you have spent on or are about to spend on any of the following from April 2017 until March 2018, then they should be deducted from your gross taxable income:

• Tuition Fee of your Children: The tuition fee paid by you for your children to any registered school, college, university or any other educational institution based in India, for full time studies, is eligible for deduction under Section 80C of the IT Act. Remember, this deduction is eligible for fee paid for upto 2 children.
• Rent Paid: If you are living in a rented accommodation, the rent paid by you to the landlord, is eligible for deduction. Salaried individuals can claim HRA exemption provided by their employers, while business owners or salaried people who do not get HRA exemption, shall claim the rent paid under Section 80GG of the Income Tax Act.
• Medical Insurance: Your health insurance premiums can also be claimed as a deduction u/s 80D of the Income Tax Act.
• Home Loan Principal and Interest: If you are paying your Home Loan EMI’s, then both the principal repayment as well as the interest paid, are separately eligible for deduction. The principal repayment can be claimed under Section 80C for upto Rs 150,000 and the interest component can be claimed under Section 24, for upto Rs 2 Lakhs.
• Payments made for purchase of a Residential property: In addition to Home Loan installments, if you have acquired a house or a land in FY 2017-18, then the payments made at the time of acquisition like the stamp duty, registration fee, etc., are also eligible for deduction.

Apart from these, there are a number of expenses that you can claim as a deduction from your income, like Interest paid on education loans, donations paid, deductions available to disabled people, etc.

Assess the investment amount: Once you are through with the expenses part, and are at the income post deductions, the next step is to assess the amount you need to invest. If your Sec 80C limit isn’t yet exhausted after providing for the tuition fee or home loan principal, Life insurance policy premiums, etc., if any, now you need to fill in the gap with investments.

Asset Allocation: Your tax investments are not just a tool to save tax. They are a part of your overall financial plan of achieving long term goals. Therefore, these investments must follow your ideal asset allocation, they must be linked to a goal, and shouldn’t be treated as a random mandatory investment created just to save tax.

ELSS Schemes for Saving Taxes and Wealth Creation: While most of us have been investing in PPF’s, Tax Saver FD’s, Traditional life insurance policies, etc., since ages. But these products have a number of shortcomings, like the interest rates are gradually becoming exceptionally low, there are high lock in periods and the returns are taxable, except in PPF. So in this scenario, investors must consider ELSS schemes of Mutual Funds, these are eligible for deduction under section 80C, with the minimum lock in of 3 years, the returns generated are way higher than all other conventional products, and that too tax free.

You must at once, sit with your advisor, who can guide you with the various investment options and the ones which are most suitable for you. So, once you are through with the plan, it’s time for action. Start investing and also accumulating the receipts for all of the above expenses paid and the investments that you are going to do to avoid the last minute hassles.

We know many successful people and it is often our desire to achieve the success that our idols have achieved. However, matching success is not an easy thing, even though we may follow their footsteps.It is not about acting or doing things but is more about absorbing the wisdom and implementing this wisdom to our lives. In this article, we fathom the minds of a few great personalities and bring to you the pearls of wisdom on being and living wealthy.

“If a rich man is proud of his wealth, he should not be praised until it is known how he employs it.” – Socrates
Being wealthy in itself is not something to be very proud of. After all, wealth can be acquired by a variety of means or even by luck. The real question is how you manage and employ your wealth. Great fortunes can be wasted or lost or kept idle with the passage of time. Wealth can act as a great tool or medium through which one may pursue things that lead to value creation in money or in kind. When it comes to investing too, employing money rightly is critical as wrong investment decisions will only erode your wealth over time. There is a risk that you may also lose opportunity to build your wealth. Often, the risk is not doing anything is higher than doing something. Socrates thus believed that a person would be better praised for what he is doing with his wealth rather than how much he holds.

Socrates (470-399 BC) was a classical Greek philosopher and credited as one of the founding fathers of western philosophy.

“If you know how to spend less than you get, you have the philosopher’s stone”. – Benjamin Franklin
At the heart of wealth creation is the idea of spending less than what you earn. Another way to look at it is that a money saved is money earned. This sounds very easy and often heard. But in practice it can be hard to do and hence the need to remind ourselves of it again. With higher spending, most of us find ourselves left with reduced savings and high debts in present times and an already committed future income. This a big alarm to us all and big hurdle in creating wealth. Financial discipline and controlled consumption are very important if one ever dreams of being wealthy.

Benjamin Franklin (1706 -1790) was one of the Founding Fathers of the United States and also known as the ‘The First American’. A very dynamic personality whose image is visible on 100 dollar bills, he was an author, printer, politician, scientist, musician, inventor, civic activist and a diplomat.

“Individuals who cannot master their emotions are ill-suited to profit from the investment process.” – Benjamin Graham
Our emotions can blind us while taking important investment decisions. Human nature is highly driven by fear, greed & hope which deviates us from taking the right decisions. Truly, a person who is emotional cannot practice decision making with objectivity, patience and common sense. Decisions taken in emotion would generally be self destructive. For success in investing, is is important to be able to shut down the emotional part within ourselves. An unemotional & disciplined investment approach,is a key to building long-term wealth.

Benjamin Graham (1894-1976) was a British born, American economist, professor & professional investor. He is regarded as the father of ‘value investing’ approach and had many great followers, including Warren Buffett.

“You only have to do a very few things right in your life so long as you don’t do too many things wrong”. Warren Buffett.
Creating wealth is easy and can be done by any person. It is also something that does not require one to be an expert stock analyst or to be very informed or something that requires lot of effort. The simple, basic and yet powerful principles of wealth creation like investing in right asset classes, investing for long term, keeping emotions at bay, etc. can really help create true wealth. One doesn’t need to be expert product choosers or market timers to create wealth. The way and the amount of wealth created by Warren is a testimony to this fact. As long as we follow these basic principles and not do something very stupid that wipes out our wealth, we will be well off. Avoiding mistakes is thus more important and something that we should all keep in mind when we make any financial decision.

Warren Buffett (born 1930) is an American business magnate, investor & philanthropist. Widely regarded as one of the most successful investors in the world, he is the chairman and CEO of Berkshire Hathaway and is among the richest in the world. He is known for his long-term and value investing philosophy to create wealth.

“Far more money has been lost by investors preparing for corrections or trying to anticipate corrections than has been lost in the corrections themselves.” – Peter Lynch
Markets are highly volatile in nature. Market fluctuations often cause investors to change their investment plans. Often we try to time the markets and move in and out of investments to profit from the market movements. However, it is almost impossible to predict how markets would behave. By attempting to do so, investors often also lose out on the returns they could have earned had they stayed put. Timing the market should never be the objective of an investor as it is the business of a speculator or a trader. Frequent changes in portfolio also comes at a cost. It is thus better to channel our energy to earn realistic returns over a longer horizon rather than aim for short term benefits.

Peter Lynch (born 1944) is a stock investor, author & a philanthropist. He earned fame in the investment world with his success as researcher & fund manager at Fidelity Investments.

“Money was never a big motivation for me, except as a way to keep score. The real excitement is playing the game.” – Donald Trump
Another truth about becoming and staying wealthy is doing what you like most. It would only mean that you are doing something with passion and something that you are willing to learn and only become good at. At the heart of it you are not really chasing money but making money follow you by being good at what you are doing. It is also something that will ensure that you are on the right path and with much greater possibilities to create wealth in future. Further, money can be used to keep track of how well we are doing, acting as a tool for reference and comparison in many ways. When it comes to wealth management, the joy of managing and seeing your wealth grow over time would perhaps give a greater satisfaction than from just holding a fixed quantum of wealth. There is a strong case for you to start liking the process of wealth management today.

Donald J. Trump is the 45th President of the United States, (born 1946) is an American business magnate, real estate developer and author. His lifestyle and the role in the famous reality show ‘The Apprentice’ on NBC made him a celebrity.

The financial year 2017-18 is drawing to a close. It’s time people start looking into the tax planning process, reviewing their existing tax investments, and evaluating various options to fill in the gap, if any. Although the lion’s share is occupied by conventional tax saving options like, PPF, NSC, Bank FD, traditional insurance policies, etc., yet over the years, the uncustomary, Equity Linked Savings Schemes(ELSS) in Mutual Funds has started gaining traction.

What is ELSS?

ELSS is a Mutual Fund scheme, which predominantly invests in stocks, has a lock in period of 3 years and is eligible for tax deduction of upto Rs 1.5 lacs u/s 80C of the Income Tax Act. An investor can save tax of upto Rs 46,350* by investing in ELSS. (*For a resident individual falling under the 30% tax slab)

Why ELSS?

Coming to the point, the factors behind ELSS’ consistently rising popularity, the reasons why you should invest in ELSS for saving tax.

So, there are various aspects which has led the entry of ELSS into the investors preferred tax zone, like:

> Drawbacks of Conventional products: The primary reason behind ELSS’ developing fame is the traditional products are gradually loosing their sheen. This phenomenon can largely be attributed to the consistently falling interest rates, apart from the high lock-ins and other issues. With falling returns and that too taxable in most cases, the net interest received is small. And if you deduct the inflation rate, the return is negligible or may even run into negative. So, the investors are on the lookout for tax products with better returns.

> Superlative Returns: The conventional products give fixed returns, but may not be able to withstand the inflationary pressure. ELSS do not guarantee returns but has been able to generate superior returns in the past, due to its underlying asset class ‘Equity’, which has potential for high growth.

Following are the performance stats of ELSS schemes over the past 15 years

(*Average of 30 ELSS schemes; Returns as of 31^st Dec 2017)

The growing inclination towards ELSS do not require any explanation, the numbers alone do the talking.

> Tax free returns: Secondly, though all tax savers help the investor save tax, but not all of them offer tax free returns. It’s just ELSS and PPF where not just the investment amount, but also the gains are exempt from tax. But in the case of PPF, the investor has to wait for 15 long years to savour the tax free returns.

> Tax Free Dividends: Not just returns, but the Dividends received from investing in an ELSS scheme are tax free in the hands of the investor. So, basically ELSS schemes enjoy the Exempt, Exempt, Exempt tax status. The Investment, the Returns on the Investment and the Dividends from the Investment, are all tax free.

> Lowest Lock in: Another major reason behind ELSS’ popularity is it offers the lowest lock-in of 3 years amongst all tax saving investments. Here, you must note that the ELSS after all is Equity, and hence it is subject to short term volatility, and so the 3 years lock in should not be construed as the investment holding period. You must give it a long time, at least 10 years, to be able to exploit Equity’s potential. An earlier withdrawal should be done in acute circumstances when you are in dire need of money. The low lock in of ELSS is intended to provide flexibility to the investor, to provide liquidity in emergencies, which is not available in other tax products like PPF or NSC, etc. It’s only under certain specified extreme circumstances and/or on payment of a penalty, that the investor may be able to withdraw from the traditional products.

> Helps in Goal Achievement: Lastly, ELSS is not just about saving taxes, it helps investors in creating massive wealth and achieving their life goals. The ELSS investments of the investor can be linked to a life goal, and the superior returns generated, as seen in point 1 above, can place them multiple steps ahead on their goal achievement path.

Here is a table to explain the impact of superior returns on goal achievement.

Investment for Retirement Goal

(*Average of 16 ELSS schemes; Returns as of 31^st Dec 2017)

The investor who invested Rs 5 Lakhs in the average of ELSS schemes in 2003, would have got a whopping Rs 95 lakhs on his retirement, as compared to an investor who chose PPF and has to settle down for just Rs 15.86 lakhs. That’s the Magic of Equity being gorgeously pulled off by ELSS schemes, and empowering the investors with massive wealth to achieve their goals.

So the bottomline is, the tax bell is ringing, and rather than randomly picking up any conventional product for saving taxes, it’s ideal that you sit with your advisor, study the alternates, consider the benefits being offered by ELSS and make a wise choice.

Another year full of surprises and shocks, has formally come to an end. Although, the introduction of GST did create ripples, businesses were hit for some time, but we are on a recovery mode. 2017 was one of the best years for Indian Equity Markets since the 2008 global recession. The markets were on a roll, with the major indices delivering more than 25% return for this year, the mutual funds industry witnessed equity inflows of Rs 178,878 Cr in the year 2017. Things are going great. Certainly, investors have made money during the year, and now it’s time to start gearing up for the next year. At this point, we have penned down a list of steps, some do’s and dont’s which can help you get the maximum out of the year 2018 and onwards financially.

Don’t Redeem your long term investments for the markets are trading high: Your long term investments should not be left at the mercy of the 2008 recession or the 2017 boom. Many market gurus are propagating that this is the “market peak” and it’s the “right time” to liquidate your investments. Well, we don’t know whether this is the peak, and we are sure neither do they. The markets are forever subject to volatility, they might correct or they might surge. Our long term goals cannot be achieved if we start timing the volatile markets. If you liquidate the investment kept for your daughter’s wedding, which was up 50% from the time you invested, hoping to re-invest when the markets correct. What if the markets do not correct any soon, or even if they do, how would you know when they are at their lowest, what if the money you redeemed vanishes while meeting your current liquidity needs. Although, your 10 lacs did come back to you as 15 lakhs, but your daughter’s wedding goes for a toss.

Don’t stop your SIP’s: On the same logic as above, it is not prudent to stop your SIP’s. The Rupee Cost Averaging will work to average out the cost of your investment whether this is the peak or whether Indian markets continue with the bull run. And your uninterrupted long term investments will ensure that you make the most of the Power of Compounding, while controlling the cost with Rupee Cost Averaging. The idea behind the SIP mode of investing is imparting discipline and peace of mind to the investor by saving him the stress caused by constantly checking as to what would be the right time to invest and redeem.

Stay away from:

• Gold: Gold one of the most trusted and sought after investment product is gradually losing its sheen, for the simple reason, people aren’t making money, it’s reflecting in the gold import volume also, which is consistently on the decline since 2011. Gold prices have remained flat over the past few years. And apparently, there are no signs of a quick turnaround in 2018, so avoid investing in Gold. Restrict gold purchase to the once in a while impulsive purchase of an exquisite jewelery piece only. Don’t buy gold hoping to get a return from it.
• Real Estate: Another favourite of Indian investors isn’t an attractive investment opportunity for this year also. Like gold, property prices have also remained stagnant for most parts of the country, in fact in some places, the prices have alleviated. Plus the RERA Act and the government restrictions imposed on real estate, as it was earlier a safe haven for parking black money has further smudged the sector. So, at this point in time, apart from the house you are acquiring for self use, limit your investment Portfolio’s exposure to Realty.
• Traditional Debt instruments: The interest rates are consistently falling, and it makes no sense to invest your hard earned money in a fixed deposit for a meagre 6-7% return. The after tax return may not be even able to cover the inflation cost. In fact, the government has announced the last cut on small savings rate (PPF, NSC and KVP) just a week back. So, stay away from FD’s and other low return yielding products, instead look at bonds, debt Mutual Funds if you want to keep your risk low, while generating better, tax efficient returns.

Review your home loan: When the deposit rates are falling, so are the loan interest rates. So, if you have an ongoing home loan, ensure you are being levied the new reduced rates. Meet your banker, and seek options for reducing the interest rates, like switching to the adjustable interest rate option, or switching to a lower interest rate plan, etc. Follow the Plan of Action and have a happy and a prosperous New Year!

“Someone’s sitting in the shade today because
someone planted a tree a long time ago”
~ Warren Buffet

The priests of investment preach the value of long term investing. You have to give time to the seeds of your principal to grow into a wealthy tree, so that you can relax under the shade of its elongated branches prospering with dense green leaves and fruits. Yet there are some investors who put money in a product, only to redeem it after six months and they divert the money to some other product, which they believe is the next big thing. And then the markets start rising, which tempts them to sell their investment and book profits. They pay heed to their peers who advise them to invest in a particular investment product and then the other peers who advise them to sell it and invest in some other investment product. These investors aim to build wealth but end up the other way round. If these investors don’t do anything but invest, be patient and relax, they can actualize their wealth targets. Following is the example of an investor who invested but kept fidgeting with his portfolio as per the market movements. Lets see how his portfolio fared over 13 years.

Mr. Sunil Bhatia, a shopkeeper by profession, very aggressive in nature, wanted to make money through stocks. He studied a lot, read articles on equity trading, watched business news channels and then started investing in 1997. He invested R40,000 in stocks from diverse sectors. In the beginning of 2000, the value of his portfolio was R60,000. He kept timing the market, did a little purchase and sale here and there. By 2005, his portfolio was valued at R50,000 after selling stocks worth R15,000, when the markets peaked in between. In 2006, the markets skyrocketed, and he booked profits, he sold the remaining portfolio for R1,00,000. In the year 2007, the markets started rising further, but he had sold whatever he had, so at the end of 2007, he again bought stocks for R1,00,000, and then came the downturn, the value of his portfolio came down to R40,000 in 2009, he was disheartened and sold his portfolio for R60,000 in the beginning of 2010 when the markets picked up a bit. What he invested was R40,000 in 1997 and R1,00,000 in 2007.

What he redeemed = R15,000 in 2005, R1,00,000 in 2006 and R60,000 in 2010. Total profits on R40,000 over 13 years = R35,000 (Annualised Returns 6.23%)If he had invested R40,000 in 1997 And didn’t touch it till the beginning of 2010, in spite of the turbulence in the markets, his investment value would have been around R2,25,700* Total profits on R40,000 over 13 years = R185,700 (Annualised Returns 14.23%)

*(Calculated on the basis of growth in Sensex. Transaction dates assumed as 1st. January for stated years.)

This story reveals how the investor, who kept timing the market, remained active in grabbing the opportunities could not make as much money as he would have made if he didn’t do anything at all. The latter is called ‘invest and forget’. Mutual Fund is a divine product which enables you to easily implement the ‘invest and forget’ strategy. A mutual fund is managed by professionals who direct your money in well researched and diverse stocks or debt instruments, in line with the investment objectives as agreed upon between you and the scheme. So your task is to discuss your goals and time horizon with your advisor, who will help you in selecting mutual fund schemes according to the discussion, invest in them and relax. You have to be patient and give time to your investment. Let’s take an example of a fund, Reliance Growth Fund. It is an open ended equity scheme. If someone would have invested R10,000 in this scheme on the inception date (8/10/1995) and didn’t do anything after that, let’s see what would it be its worth now? R10,000 invested on 8/10/1995 in Reliance Growth Fund = R821,070 as on 30 June 16 (23.68% Annualised Returns) R10,000 invested on 8/10/1995 in Benchmark (S & P BSE Sensex) = R74,994 as on 30 June 16 (10.20% Annualised Returns)

(Source:Company Website: https://www.reliancemutual.com/FundsAndPerformance/Pages/Reliance-Growth-Fund.aspx)

The above figures clearly state that if the investor invested in this scheme, not only would he have had gigantic gains, but also he would have outperformed the benchmark. People do not invest because the investment process is alien to them or they do not have the time to manage their investments and it seems complicated for beginners who don’t have the requisite knowledge. Following is the story of an investor who didn’t do anything but forgot about his investments. Lets see how the investments fared. An old woman walks in a Mutual Fund Office in Amritsar on a sunny June day, perplexed, she manages to take out a small purse from her jute bag. She mysteriously opens the purse and unveils a four-folded piece of paper covered in dust and asks at the reception desk “Bhaiya iska kuch milega?”. The receptionist sees, it was a Mutual Fund transaction slip, so she directs her to a representative. The representative looked at the slip and then at the woman, awe-struck, and asks her after taking a deep breath, “Mataji, ye apko kahan se mila?” The old hag replied, “Mere pati ka pichle 2 saal pehle dehaant ho gya, badi musibat mein hain hum log, yeh paper mujhe kuch din pehle almaari ki safaai karte samay mila tha”. The representative congratulated her and said “Mataji aj ghar Mithai leke jana, ye paper 1.5 lakh rupay ka hai”. The Lady elated with joy took out 8 more papers from the magic bag and the total worth of those papers was 17 Lakh rupees. The lady walked back home drenched in tears of happiness. This anecdote reveals how ignorance proved to be a bliss for the poor old lady. Her husband invested in mutual funds and kept the slips inside the cupboards and not informed anyone, neither did he liquidate. While this lady was lucky enough, it cannot be that lucky for everyone else. We have modified the ignorant investment process to a “invest and recollect” one. It goes as follows:

Go to a Financial Advisor
Every man does his own business best. Devising the right investment strategy, the right fit as per your goals, investment horizon, age, risk appetite, is the job of your financial advisor. An investor may not have the requisite knowledge and skills to perform this task, so its best to handover the job to the expert.

Stick to your plan
Once you and your advisor have concocted your investment, do not fiddle with it, do not panic when you are losing since this phase will pass by, do not be excited and sell when you gain, do not pay heed to any investment mantra professed by your friend. Just keep in mind you are here for the long run, the markets will fall only to rise again, and your portfolio will endure all the storms.

Meet your advisor regularly to incorporate any changes as advised by him The investment plan though requires a long span, yet it calls for modifications, additions and subtractions to ensure that you are following your vision. For this, you must meet your advisor regularly. Say your ideal Debt Equity bifurcation is 30:50, but due to market movements, it has become 60:40, so the advisor will modify your plan to bring it back to 30:50. Or may be, you were unmarried at the time of designing the plan, but now you have your wife with you and you are expecting a child soon, so necessary modifications will be required to encompass the new members of your family. Your advisor will check for any holes in your pocket and stitch them for you.

Keep it Simple
If you are new to investing, or do not have the knowledge or time to keep track of your investments, keep it simple. You should always ask your advisor to include simpler products like mutual funds, since you are assured that there are professionals who are doing their best to protect and grow your money. You should never invest in something which you do not understand.

” Invest and recollect strategy will work wonders. ”
” Make the right choice and relax. Patience will pay. “

In it’s 6^th and the last of this fiscal’s bi-monthly monetary policy review, RBI kept the Repo rate unchanged at 6%, three times in a row, announced on 7th Feb 2018. What does it mean for the common man?, is the question to be answered in the following passage. But before moving on to the impact of the rate, let’s understand what does Repo rate mean?

So, Repo Rate is the rate at which RBI lends money to commercial banks, generally against government securities. Repo Rate is used by the Central Bank to control the level of inflation in the country. When the Repo rate is low, banks get money at cheaper rates and consequently the lending rates also fall, which leads to increased supply of money in the economy thus accelerating inflation; and vice versa, the Repo rate is increased when the inflationary pressure is high in the economy.

Now we have some key takeaways from this Monetary Policy Review for the common man:

> Inflation: The retail inflation accelerated to a 17 month high of 5.21% in the month of December 2017. The RBI has raised its forecasts for CPI inflation to 5.1% for the March quarter and to 5.1-5.6% for the first half of FY 2019, before stabilizing to around 4.5-4.6%.

> Loans: The interest rates have taken the downward staircase since the last 3 years, and a stable repo rate means they aren’t changing course any soon. Low and constant Repo rate means it’s an opportunity for prospective home buyers as they can continue to avail loans from banks at cheaper rates.

> Deposit Rates: Like Lending rates, deposit rates are also caught on the downward trend. 1 year Fixed Deposit rates have fallen from the 8.5% range to a mere 6.5% range from 2014 to 2017 for all major banks, and apparently the scenario for the upcoming months also look muted. Similar is the plight of other traditional investments like PPF, NSC or fixed deposits with shorter or longer investment periods.

In light of the above situation, it may not be wise to keep your money in banks or other low interest bearing instruments.

– Liquid Funds for parking your savings: It’ll be a better bet to park your extra cash or Emergency money in Liquid Mutual Funds, than letting them sit in your savings account for a meagre 4%. Liquid Funds can fetch you better returns than your savings account, plus it offers high level of liquidity also. In some funds, you can get your money in your bank account within 30 minutes of placing the redemption request.

– Short Term debt funds for lower horizon investments: When you have a short investment horizon of around 3 years, Short Term Debt Mutual Funds offer a better alternative to Fixed Deposits or other traditional investments, by offering marginally better returns as well as by offering indexation benefit which significantly reduces the investor’s tax liability on capital gains.

– Equity Mutual Funds for longer term investments: After the recent announcement of Long Term Capital Gains Tax on returns from Equity, in the Union Budget this year, investors are skeptical about Equity. Just to put this into perspective, the tax will be levied at a modest rate of 10% and that too on the returns earned over Rs 1 lakh. So, if the returns from your Equity MF investment are 15%, 13.5% is still yours. Hence, Equity continues to remain an attractive investment option for long term investing, because of substantially higher returns than all other asset classes even after providing for taxes.

Hari Prasad Verma was an assistant to a renowned builder in his town Saharanpur. Hari was living a lower middle class life. One day, on the way to office, Hari bumped into his long lost friend, Vimal Singh Rathod. Vimal was running a successful business in Delhi and that meeting was all about Vimal’s success story. Vimal talked about his business, his setup, his vision, his current life and so on. Hari was impressed by how Vimal achieved success in such a short period of time. Hari was overwhelmed with Vimal’s success and that night when he went home, the conversation kept hovering in his head. Hari fell on the bed but kept thinking about Vimal and then his own work and his own future plans, etc. He starts imagining:

• Hari invests all his current savings into some stocks.
• Suddenly, he jumps to a scene when his money has quadrupled.
• Then, he has started a new business.
• Next he sees himself opening a big factory with many workers.
• In the next scene, he steps out of his Mercedes in front of his present office and his boss, the lawyer sees Hari and is by now fuming with jealousy.

Hari chuckles at his boss’ misery and has a wicked smile on his face. Then suddenly his wife nudges him “What’s is the matter? Why are you smiling? Like all other dreams, Hari’s beautiful fantasy was also smashed! If wishes were horses, all us would have made great riders! The reality however is that no person can become successful overnight. As an investor too, it requires many years of demonstrated traits before one considers himself as successful. So before we start enjoying the fortunes made from selling the eggs of chickens yet to be hatched, purchased from money yet to be saved, let us step back and look at what it really takes for us to be successful investors first.

How to be a successful investor?

Those who have triumphed over all odds, and form the league of successful investors, share certain common characteristics. The article isn’t about any secret investing tips, rather it aims to acquaint you with those basic human virtues which can help you in joining the success league.

1. Have Patience: Patience tops the list, it can not just help you in your finances, rather it can help you overcome many challenges in life. Because Patience helps you think with a mature mind, analyse the possible solutions, their pros and cons, and take an informed decision, which is mostly for good. Panic on the other hand leaves you at the mercy of the situation and you end up ruining everything. The idea is not to panic at short term volatility and having patience to hold on for long term gains.

2. Have an Investment Strategy: Those who have aced it, have an investment strategy and they stick with it. Different investors have a different history, they live in distinct circumstances and they have their individual preferences and goals, and on the basis of these factors, they have a different investment strategy. As an investor you should devise your own financial plan or investment approach, with assistance from your financial advisor. This strategy is the road which will take you to “your” goals and will make sure that you do not go astray or loose direction.

3. Be Decisive: Be a decision taker and not a trouble maker for your Portfolio. Successful Investors take the right decisions at the right time, which may be hard, but are right for their financial health. Being decisive is also about not being tentative and not procrastinating things or decisions endlessly. It is about taking decisions in time and not letting time put costs on you and your decisions. Being decisive is also about having clarity in thought, in your objective and the options available before you. Being decisive would mean that you take decisions with clarity and with conviction.

4. Have Conviction: We talked about conviction in making decisions but conviction is also required for you to stick to your plans and strategy over time and be committed to it. A successful investor is here for the long haul, he is not the one who gets scared of easily. If he stumbles in between, he’ll rise, shrug off the mud and run as a stronger and a better person. Your conviction in your plan, in the underlying asset class of equity and the long term growth story of India is the primary foundation on which your future wealth will be created. Do not let this get diluted by any interim events and uncertainty.

5. Understand & Take calculated Risks: Successful investors are not the ones who refuse to take any risk, rather they are ones who take calculated and measured risks and whose worst outcomes are acceptable to them. You might not lose if you do not risk, but you won’t win for sure. If your choice is to stay 100% invested in say bank deposits and PPF, then surely you may not loose money in nominal terms but also be sure that you will not again anything more. Taking risks is however not limited to your exposure to any asset class. It goes much beyond. It is also about you stretching yourself in business, exploring new ideas in your work, changing roles or jobs for growth and so on. Thus, pushing your limits, taking bigger responsibilities and growing yourself are much more important risks you need to take to be successful financially in addition to investing positively for long term wealth creation.

6. Be Committed: Any successful person knows the importance of being committed to a chosen goal or target. For an athlete, it can be an Olympic medal and in the preparation for the same, he puts in lot of hard work, sacrificing all good things like comfort, entertainment, food, family ties and so on. Imagine, for an investor what can be the goal and the demands for achieving the same? To be truly wealthy for a middle class, service professional like me, I would imagine it would take commitment in the form of being austere, sacrificing luxuries, being disciplined and saving to maximum possible extent, down to the last rupee month after month. Thankfully, it will be much easier than the last drops of sweat an olympic aspiring athlete will shed in training in a day.

7. Keeps Emotions aside: Any investor would love his family, love his food, he would hate when someone spoils his evening tea, he cries in movies and he is proud of his kids, all because he is a human being. Emotions are what make us who we are. But an investor can only be successful if he keeps these emotions aside. He has to know and draw a circle around his money /wealth matters and not let his emotions enter that circle. You can image your emotion as Ravana to be kept outside the circle to protect your precious wealth at home. Every financial /investment decision you make – whether to buy, sell or hold, has to be driven by logic, facts and research. Bias, gut feelings, tips, hope, greed, etc. have no existence in numbers and they are left out in counting.