Mostly, investors get confused between saving and investing

What are the common investing patterns that you have observed among the clients when you meet them?

Mostly, investors get confused between saving and investing. And they assume insurance as investments.

What are your tips for being a satisfied investor?

The investor will be satisfied when he gets good returns on investments after beating the inflation and can sleep peacefully at night without being worried about his investment. Therefore, an investor should not invest into risky products and should consult their financial planner before investing.

For most of us investing and saving is same? What is the relation between saving and investment? How much should a client save before investing?

Mostly investor's regard investing in any RD or SIP as a saving, which is actually a wrong concept. When I meet any new client I always tell them to save minimum six-month's expenses before going ahead for any huge investment. All my clients maintain a separate saving corpus besides investment.

Does tax planning need to be a part of investment plan?

Tax planning is an important part of personal finance. It directly impacts returns on investment.

How important it is to have a life insurance plan? What kind of insurance should investors take?

Life insurance is also very important, as it is the replacement of income of earning member to a family in case of earning member’s absence. Every individual investor should strictly have a term insurance plan, minimum 20 times of the annual income.

What is the need for having a health insurance if an investor has life insurance?

Health insurance is required for taking care of hospitalization. It cannot be replaced with life insurance.

Should retail investors invest in shares and stocks? How risky is it?

Before investing in shares they should analyse their risk profile. If they are comfortable taking the risk, then there is no harm in investing in shares. They should be well informed before investing in shares. There is always risk involvement in short-term investment. Investing in shares should be for long term.

How many clients do you manage under your umbrella?

We currently manage 85 clients under our umbrella.

How do you differentiate yourself from other advisors?

I do not follow the process of only adding clients through referrals. I always meet new investors without any hesitation and explain them the concept of financial planning. After explaining them the advantages of savings and investments that I ask them to take their decision. Once the investor fully understands the process and takes the decision we go ahead with the investment process. It is very important for us to have the same thought process for all the new clients that we meet.

Your advice to investors

Get to know your needs and break your investments in different product baskets.