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Behavioural Finance

Behavioural Finance Most people often devote rather waste a lot of time finding the next big investment , hot stock , fund , real estate and so on. However the

Baby steps for accountability

Publication: Business Standard, Mumbai; Date: October 17, 2010 Allowing children to handle money from an early age helps inculcate financial discipline The best way to teach kids about money is

When should you start talking about money to your kids?

Publication: The Economic Times Mumbai; Date: Jun 27, 2011;Section: ET Wealth Page: 34 “Teaching kids to count is fine but teaching them what counts is best.” —Bob Talbert, American columnist

MFA is now ISO 9001 : 2008 certified !

ISO 9001 Mailer_Final 04thSept 14

Last Will & Testament- Passing On Your Legacy

 

Nomination & Wills_Chitra Iyer_August-14-page-001 (1) pageHere is an article “Last Will & Testament- Passing On Your Legacy” written by our COO Ms. Chitra Iyer.

The article is very informative and beautifully covers various aspects like the need for a Will, the sense of urgency required about it and nominations. It shows you how simple practices can make your and your family’s lives easy and stress free.

We hope you like the article and use it in your life. Looking forward to your feedback on the same.

 

This article first appeared in the August 2014 issue of Complete Wellbeing magazine.

Please click on this link to read the article - Nomination & Wills_Chitra Iyer_August-14

Value Based Quality of Life Newsletter- June 2014

At MFA we keep looking for ways to add value to our client’s lives. One of the things that we always wanted to do was to create a monthly Newsletter. However we did not want a newsletter because the big boys were doing so.

We always questioned –
What kind of message does it communicate when we send our clients and prospective clients financial information?
Are we really trying to educate them on financial things that we should be doing for them?
Do we want our clients to spend their valuable time learning about things that we should be handling for them? Isn’t that our job? Isn’t that what we get paid to do for people?

We believed that our clients should be enjoying the kind of life they want because we ‘got their back’ and are handling their financial interests so they don’t have to. That is the message they want to hear and to feel confident that they have a relationship with the ‘right’ Advisor who cares about them achieving their goals.

Thus, our search led to “Values-Based Quality of Life” Newsletter which would focus on things that people cannot delegate ( physical health, inner health, career health, and relationship health).

Please feel free to give your feedback in the comments section.

MFA Shortlisted For The Wealthbriefing Asia Singapore Award 2014

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With great pride and pleasure we would like to announce that we have been shortlisted for the Wealthbriefing Asia Singapore Awards 2014” for the second year in a row.

 We have been shortlisted along with some of the top players in the industry in two categories-

LEADING INDIVIDUAL:

  1. Amar Pandit – MFA Consulting Pvt Ltd.
  2. Carolyn Leng – CIMB Private Banking
  3. Vibhor Gujurati – Edelweiss Alternative Asset Advisors

WOMEN IN WEALTH MANAGEMENT (COMPANY CONTRIBUTION):

  1. MFA Consulting Pvt Ltd.
  2. ANZ Private Bank
  3. Barclays, Wealth and Investment Management
  4. Dragon Capital Group
  5. RBC Wealth Management » Read more..

“WHY US?”

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How should you choose a Financial Advisor / Planner?

People generally get advice from a variety of sources namely colleagues, friends, family, banks, stockbrokers, chartered accountants, insurance agents, advisors, wealth managers, and planners.

Most people today end up taking advice from several different people and hence end up with so many unnecessary and irrelevant products.

The correct approach is to create a comprehensive written strategy that would cover every aspect of personal finance for you. In short, there is a pressing need to take a holistic view of your overall situation. There should be one person or a team who takes stock of your cash flows, assets, liabilities, liquidity needs and helps you firm up your financial goals.

A lot of agents, financial distributors and banks try to call themselves financial advisors or planners. They generously also use the term financial planning / wealth management as and when it pleases them.  Consumers are naturally confused. So how does one evaluate a planner? Ask the following questions and you will have your answer.

First: How detailed and comprehensive was the data-gathering interview?

This is one of the most important steps in the financial planning process and will drive all the advice to be given. Was the data gathering comprehensive enough? Did the financial planner make notes of the information that you did not have and ask you to get back with this information? Did he take in  information about you, your family, your aspirations, dreams, goals, income, expenses, cash flows, assets, liabilities, insurance, investments, tax situation, wills, powers of attorneys and information that might be relevant? Did he ask about your behaviour towards risks and how you react in bullish and bearish situations? Did he understand the mistakes that you have committed in the past and how were they committed?

A good financial planner should take anywhere between 3-5 hours including a social chat over 1 or 2 sessions to complete this data gathering process. He will then review the data collected and revert to the client for more clarifications to make sure he has understood the overall scenario well.

This first step itself is the single biggest clue.

Second: Look closely at how the planner discusses risks and returns with you.

Does he promises you the moon and tells you how good he is and that he has provided the highest returns?

No good financial planner in his sane mind will ever do so and this is the kind of person you should look at working with. Does he take you through a proper risk profiling exercise, and tell you that the long-term return of the stock market is around 12-15 percent and therefore one should not believe theories of 30 percent returns?

Third: Don’t look at the bank brand and opt blindly for advice, as the bank is not going to advise, it is the advisor that does. Most relationship managers in banks are primarily sales people always on the lookout for selling more products to clients. They frequently change employers so a relationship manager at Bank A can tomorrow be at Bank B and then at Bank C.

Fourth: Does the financial planner take you through estate planning matters, retirement planning, different offerings, as might be suitable to you, and any other issues? He might not deal directly in any of those things but most good planners will at least give you an overview of what you need and refer you to someone competent.

Most of the private banks and distributors have a well-deserved reputation for first selling life insurance as investments and churning portfolios under the garb of financial planning.

“Would you go to a chef for a haircut, or a barber for food advice?” The problem today in the financial services industry is that you don’t know who the barber or chef is because everyone uses the same title or name. Make sure you understand the terms financial planning, wealth management and wealth manager, and that you are not just getting a lemon in the name of financial planning.

Did you find this piece helpful? We thrive on your feedback and are always eager to hear and learn from you. Look forward to your comments.

Ukraine Crisis

 

 

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20 things you probably don’t know about the Russian incursion into the Ukraine
Our hearts and prayers go out to the people of Ukraine, as they undergo both an internal political crisis and what appears to be military intervention from Russia. For people of a certain age, the current events, with tanks rolling across the Russian border into a neighboring nation that wants to exercise its freedom, it feels a bit like the Cold War days all over again.

Whenever we see troop movements and fires raging in the streets of a capitol city the size of Chicago, our instinct is to assume the worst and move our money to the sidelines. But is this really the best strategy? Some commentators see any market downturn as a buying opportunity, since stocks are going on sale simply because of unfounded fear of economic aftershocks.

Here are some facts that you might not know about what has, hitherto, been a relatively quiet new member of the world economic community. » Read more..

The Right Way

For quite a few years now, our team has been asking people, this question: How do you take financial decisions ??

The responses have been wide-ranging. Most people adopt a very ad-hoc approach. If they have liquidity and money in the bank, they end up buying investments from the first sales-person walking in to sell a product. What they do not realize is that adhoc actions will only lead to random results. Others research the ‘product’ that they are thinking of buying and think that they are doing the right thing. But even they have got it wrong. » Read more..

The January Effect

Bogus Effect This time of year, we often find ourselves reading about the “January Effect,” which is sometimes described as a predictable way to forecast returns, and sometimes as a way to know whether this is, or is not, a good year to invest and make some money. Unfortunately, most of this reporting is nonsense. Let’s start with the predictable part.  Wouldn’t it be nice if, even for just one month of the year, we could know whether the market is going to go up or down?  That’s what market pundits are implying in their January Effect reporting: that markets have a strong tendency to rise in January.  Why?  The explanation, first offered in 1942, is twofold: » Read more..

Bitcoins: Investment or Bust?

You may have been hearing lately about an alternative currency known as bitcoins, and the stories tend to be bizarre. Like, for example, the person who traded in his computer for a newer model and later realized (too late, as it turned out) that the hard drive contained $7.5 million worth of bitcoin currency in an encrypted “wallet.” Or the recent heist of bitcoins with an estimated value of $100 million from an illegal online drug sales website whose ripped-off drug lord customers are the kind of people who are not averse to having people killed with far less provocation. This person is now driving around with a hard drive whose electrical impulses are worth more than seven and a half tons of marihuana or a million grams of cocaine. These estimates are based on recent prices from Silk Road, another prominent bitcoin marketplace that was shut down by the FBI a few weeks ago because, thanks to the anonymity of bitcoin currency, it had managed to do an estimated $1.2 billion in virtually untraceable sales of heroin, ecstasy, marihuana, cocaine, firearms, ammunition and computer hacking services to prominent members of the criminal underground.

For the uninitiated, Bitcoins are a relatively new digital currency. The actual coins are, of course, not coins at all; they are essentially records in a digital archive stored on servers throughout the web, in the form of digital signatures, timestamps, wallets and public keys, all created in open-source computer code in a way that is designed to foil hackers. Because a Bitcoin transaction doesn’t involve banking or transaction fees, some economists think that they represent an early version of what all currencies will look like in the future. » Read more..

Collector v/s Investor

Collector Vs Investor

 

 

 

 

 

 

 

 

This is one stock market, fortune-telling, goof-up that has the potential to trend on Twitter as an #EpicFail

Somewhere in August 2000, Fortune Magazine came up with a buy-and-forget portfolio for investors who were looking to retire in 2010. The promise was “If you’re a long-term investor, these 10 should put your retirement account in good stead and protect you from those recurring nightmares about the stocks that got away…”

So how did these stocks really fare over the next 10 years? Talk about hitting the bottom.  » Read more..