Financial Awareness month; Take charge of your financial health!

“Hindus are seekers, not believers ....” thus spoke Sadguru Jaggi Vasudev in an interview to The Ecomonic Times yesterday.He clarified that all those people living in this ancient land below the Himalayas have pursued “search of truth” from the vedic times.
But when it comes to buying of financial products, we have been doing the opposite.We believe our friends,agents, brokers and banks staff without bothering to find out what we are buying and whether it suits our need or not ?By the time we realise the products, be it  insurance or investments, are mismatch to our needs, it is already too late!

This is amply demonstrated by the fact that the insurance companies have made roaring business in the name of tax savings during the current  month. Some Life Insurers have recorded more than 40% growth in business by selling mostly endowment policies where commission is  upto 35-40% of the first year premium and returns are not more than 5-6%.But have anyone bothered to find out the opportunity loss of future income/growth for  meagre tax saving. This is like missing the woods for the trees.

I have also done similar mistakes although I have worked for more than 22 years in the banking sector. My investment instruments were mostly NSCs, Bank FDs, LIC and PLI endowment policies. A recently matured PLI policy has given me 3.56% return. I realised my blunders and unearthed the truth only after working for an insurance company in a risk management position which I left voluntarily for promoting financial awareness and providing right advice.

There are some basic principles in investment decisions which many of us ignore.

  • Insurance and investment should not be clubbed together
  • Knowing risk appetite before investment
  • Focussing on Financial goals and time horizon in investment decisions
  • Asset allocation is key to wealth creation
  • “Do not put all your eggs in one basket” Warren Buffet
  • Rupee cost averaging is better strategy than timing the market. 
Our mission is to help you to search truth and enable you to take charge of your financial life by doing a better job of your spending, saving, investment and managing risks in your life.
We have embarked upon the month of April 2015 asFinancial Awareness month and will undertake the following activities;
  • Post card campaign for “Your Financial Health”
  • Financial health check up(A questionnaire with 20 questions)
  • Corporate programmes on Financial Awareness
  • Financial literacy for school children(www.studentspocketmoney.com) 

We trust you will find the initiative appropriate. We  shall be glad if you could forward this mail to your friends and colleagues to contact us and participate in any of the activities as mentioned above. Thanks for your  support and cooperation.

 

Last modified on Wednesday, 10 February 2016 06:35

Prakash Praharaj

Shri Prakash Praharaj has a passion for excellence. He has been awarded two gold medals for securing top positions both in Graduation and Post Graduation in Commerce. He is an MBA with specialization in Finance and marketing. He has been awarded Diploma in Treasury, Investment and Risk Management besides CAIIB from the Indian Institute of Bankers. He is a Certified Financial PlannerCM from the Financial Planning standards Board, India (FPSB), affiliated to FPSB, Denver, USA and Certified Personal Financial Adviser from NISM. He is also a SEBI registered Investment Adviser vide Reg. no. INA 000000045 dated 2nd August 2013.His book "Your Every day guide to Personal Finance and Insurance" has been published by CNBC TV 18 in August 2015.

14 comments

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    posted by Sujata Aniruddha Sapkal

    Thursday, 02 July 2015 09:24

    we do not give required amount of attention for the managing and growing of our hard earned money that result in non achievement of our desired financial goals.

    It is equally important to work hard to make your money do hard work for you.

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