risk in personal finance

Risk of being part of AIFW!

Before objective analysisRisk of not digging deep

After objective analysis!Risk of digging deep!

Paralysis

Before After

Priorities

Power of compounding does not matter for ~ 5Y or less

Popularity

“It Seemed Like a Good Idea at the Time”

A minimalist portfolio

Asan Ideas for Worthless information!

“Ashal Sir, Please name the two mutual funds you hold”

When Ashal says MDBSC* ….

A Mutual Fund SIP is Hope, Not a Strategy!

Currently there are ten funds that are 20-years old

In 2036, there would 500+ 20-year old funds!

Mutual Funds are not LIC polices!

A Mutual Fund SIP is Hope, Not a Strategy!

Systematic investing + Systematic Risk Management

• Clear Asset allocation • Watch for deviations regularly (yearly first and

more often later)• Rebalance (once a Y, once every few Y and

more often later)• Quit while ahead

All this is possible with MDBSC!

Star Ratings

How to review a mutual fund SIP?

Do we have a review strategy in place?

How to review a mutual fund SIP?

Buying on dips!

Buying on dips = SIP!

How many of us are going to compare!

Buying physical gold <> Investing in gold

Aim: accumulate gold for daughter’s marriage.Aim: Hedge against inflationAim: Reduce volatility in my portfolio?

Buy physical gold or use gold funds, etfs . Bonds?

Gold always moves up!

Gold always moves up!

Riskometer

NAV always moves up!

Recency Bias - 1

Risk Ignorance

FD rates have gone down, so can I invest in debt funds?

Can I use balanced funds for SWP in retirement?

Can I invest in sector funds for next 3 years?

Liquidity Ignorance

NPS only for tax deduction

Use tax-free bonds to get tax-free returns

Real Estate

You cannot choose the “right” mutual fund or stock!

Invest in “good stocks” and forget about it!

Please suggest a mutual fund to start SIP for next 15 years.

Stock investing vs Mutual Fund investing

Timing the Market

Possibility vs probability

Hot-hand fallacy

risk in personal finance

Business