What kind of detailing does your advisor look into while managing your finances / insurances? Recently onboarded a client who has sifted base from Singapore to India The client was in Singapore for 16-17 years. He has a 2 Crore of term insurance wherein premium was to be paid for only 5 years and the policy term is around 44 years. Once we reviewed all his insurances, the same agent has sold multiple insurance policies (ULIPs, Guaranteed Return, Money Back, Endowment) and have not disclosed the previous life insurance policies while taking the term insurance We highlighted this to the client and getting it fixed. We didn't received any commission for the term insurance or the toxic insurance policies, yet we are getting it fixed. We do a lot of things for our clients which do not generate any revenue to us.

In the next 25 years, at least 15% of the population will have 100+ Crore of net worth. Compounding is J curved. Just work on your skills and invest wisely - you will also be one of them 🌸🌺🤗🚀

12% return in 1 month = 300% Annualised Return 200% return in 20 years = 6% Annualised Return XIRR is an illusion in short term AND Absolute return is a delusion in long term. A client recently messaged that his XIRR has fallen from 20% to 8%. That is what triggered this post. Some important points to understand about XIRR & Annualised returns: 1) XIRR for a short period of time should be ignored. If you are able to earn 1% in a day - the annualised return (XIRR) shows 3700% return annually. Why? The XIRR calculation assumes that for the rest of 364 days as well the returns will be 1% per day. ▶️The more closer you move towards the 1 years mark - the difference between absolute return and annualised returns keep narrowing down. ▶️Exactly at 1 year mark - the absolute return and annualised returns are equal. ▶️for any holding period greater than 1 year - absolute returns will always be more than Annualised Returns 📢Anyone who do trading based on telegrams trading channels & trading gurus who promise 1-2% return per day should understand - it is impossible to do this consistently. 2) Absolute Returns in a long period of time should be ignored ▶️you can double your money, your will get three times the money you have paid. But the key question should be in how much time. ▶️If one can double the money in 3-4 years - it's a super return & if one double the money in 10 years - it's a pathetic return. So time frame matters 📢Insurance companies and insurance agents (selling traditional policies like LIC) uses this delusion to perfection. As an investor - you should always question what will be the annualised return in these types of investments. Absolute returns will mis guide you in long term. Now, the most important part. How is XIRR impacted for different holding period after a market correction? in the above table, I have illustrated, how the XIRR is affected by a 15% market correction - the most important factor here is HOLDING PERIOD ▶️lesser the holding period, the XIRR will fluctuate more ▶️longer the holding period the XIRR will have lesser impact. 📢keep holding the investments for longer and longer period of time, the market corrections will have lesser and lesser impact on your annualised return. If you like this post, please RT and do follow @stepbystep888 for more such content

A magical line of credit - Overdraft Account ✨ THREAD

Onboarded a client with the below legacy portfolio. Many a times I feel the criticism against MFDs, Wealth Managers, Bank Relationship Managers is fair to an extent The biggest allocation is in a recent NFO What are your thoughts on this portfolio. Purpose: Wealth Creation for long term

If news are to be believed - Mr Amber Dalal - Ritz Consultancy - based out of Mumbai - ran off with an estimated 1000 to 1500 Crore. 🔸He raised as low as 10 Lakhs 🔸1000+ people invested their hard earned money 🔸22% annual return with safety of capital was promised My views: ⏭️ Always invest in regulated instruments like Mutual Funds, PMS, AIF - but never ever give money to these kind of structures ⏭️ The legal battle will take years and years ⏭️ There is ZERO chances for recovery of 100% of the money ⏭️ Even Elon Musk or Mukesh Ambani cannot generate 22% XIRR without any risk. Who is Amber Dalal ⏭️ Avoiding these types of mistakes is very important in wealth creation journey. ⏭️ 2024 done, we will hear one such story every year going forward. Why? GREED. ⏭️ It's always better to get associated with some regulated entity to manage your finances. ⏭️ Feels bad for senior citizen who lost their savings in this kind of a fraud 🌸🌺🤗