In an interview with Pooja Chopra Goel of Myiris.com, Priyesh Shah, CEO of Bliss Xpress says, ``Scam is the flavor of the season!``
Can someone get hourly financial planning and tax advice to get a big picture? How do I know if the cost of financial planning is worth it for me?
The concept of hourly advice does prevail in India; however it is practiced only by established professionals where it`s a statutory or legal matter. Thus the same may apply to tax advice. But, it will gradually evolve for matters relating to financial planning.
Having said that I do believe that few financial planners who are the veterans in this industry does provide advice on hourly basis. The worth of any product you buy is perceived by the value you are looking for in that product. A car may be a mode of transport for one person and for someone else it may be a luxury; thus both will have different value for the car.
In financial planning your cost is not just related to the advice or recommendation given by the expert, but also has intangible values like clarity about your life goals, proper organization of one`s investments, hand holding by an expert for any financial decision, monitoring and tracking your progress in life, etc.
What information should one bring along to get maximum value for time spent with the planner?
Each advisor has his / her own way of gathering client data. Thus it would be best to talk to the advisor whose service you are taking. The advisor may have developed a `fact finder` or `data gathering sheet` which he would require you to complete and bring along with you. However to give you some idea one should have following information:
> Insurance policies for life, med claim, fire, motor etc.
> Latest investment portfolio details for shares, mutual funds, ULIPs, etc.
> Previous investments into NSC, PPF, fixed deposits, gold, real estate, etc.
> Balance loan repayment details, if any, for home, car, etc.
> Salary slip and financial statements
> Current monthly expenses of the family
> Some idea on critical goals which would be coming in your future life
How would you suggest a common investor ensure that their accounts are protected and not invested in dubious instruments?
Scams have been the flavor of the season. So it is quite obvious for a common investor to ensure that his money is safe. However there is an inverse relationship between risk and return. If you invest all your money in instruments which are totally safe and secure, the post tax returns that you get may not even beat inflation. Thus, it is more important is to ensure that you have proper `asset allocation` and the investments that you make in risky asset class are backed by good research and past track record of the companies, the fund houses and their future growth potentials.
How many fund houses do you deal with? In which fund house do you have the maximum AUM ((in terms of percentage)? Tell us your favorite all-time MF schemes and fund managers.
There are many fund houses with whom we deal with like HDFC, Reliance, DSP Blackrock, etc. If the fund house has shown good performance over the years then we consider that above any new fund house which comes out with an innovative product. HDFC has been on top of my chart and one of my all-time favourite MF scheme is HDFC Top 200 Fund.
Has the no-load regime affected your business?
I started my practice along with the regulatory change of no-load regime and have grown my business since then.
What three books related to personal finance would you recommend every person read and why?
These books are not strictly speaking on personal finance but more to do with you as a person. These books make you think from a different perspective. They have practical examples of people who have made it big. It helps you think big and make it to the top. Following would be my recommendations:
> Rich Dad Poor Dad
> Stay Hungry Stay Foolish
> Think and Grow Rich
What is your take on current market situation? What are the key factors that will drive the stock markets in 2011? What is your advice to retail investors now?
Currently the markets are stabilizing and are range bound. In addition to the common factors like FII inflows, interest rate fluctuations, etc. in 2011 we should be looking at factors like scams, political risks, inflation, industry growth, etc. As a retail investor, you should stick to your plan. The products may have to be changed however the strategy should not be changed, to achieve your financial goals.
Email
Print 
