Managing personal finance is for long term…..

The whole thing is that ke bhaiya sabse bada rupaiya!!

Money goes round the world and the world goes round the money! In spite of its importance, it is on top of our mind, managing it is not! The fact that managing money requires more skill than making it seldom dawns on us—since we always pride in ourselves thinking that we know all that we need to know about money!

Your money is as important as someone else’s money!!

It is strange but true that many a finance professionals are not able to show the same level of performance in managing own money vis-à-vis client’s money! A sales manager at a prominent MF was more comfortable investing own funds in bank FDs. Why? It is possibly easier to handle client’s money as there are no attachments or far less compared to that in case of own funds.

Get professional help!!

Sure you do and we are glad about it!! There several terabytes of information available on the internet for you to access and utilize. There are websites that offer free analysis of MF schemes. But it is not the only input you need to home in to an investible fund/scheme.

Do the so called free on line fund analysis work out your risk profile before throwing up a scheme onto the screen? How do you decide the right asset allocation or allocation between say large caps/mid cap/small cap oriented funds? Sure you can download the best performing schemes---but who’ll tell you that it is the history that you are looking at….and history may not be repeated always—howsoever we may want it. Fee based advise is far better than free advice--let us all accept it for our own and our money's good.

You may not always get No.1 fund

If you have invested in 5 schemes, then one of the schemes has to be placed at No. 5. All the schemes you have invested in will not be at No.1. This wish to invest in No.1 scheme may lead you to divest a potentially good scheme. Do not fall for neighbour’s envy owner’s pride.

Let us engrave the statement “Managing personal finances is for long term”. You will have a peaceful night’s sleep once you start believing in it. Your long term financial goals will be met if you let your money work for itself with minimal of interference from you.