Network FP Thinktank is an Online Professional Journal by Network FP wherein we share the articles written by top-class financial advisors and industry thought leaders from across India and the world.
Times of Transitions create Transformations
Lovaii Navlakhi
Founder & CEO, International Money Matters Pvt. Ltd
February 25, 2020
Reading Time: 3 minutes “Change is the only constant” is one thing we have been hearing for almost all our lives. However, just knowing this is not enough to help us steer through changing times. How we perceive changes in life(good or bad) greatly impacts how our clients do too, and we are going to handhold our clients through a lot of good, bad and sometimes heart-breaking transitions in life. Mr. Lovaii Navlakhi tells us today about how we can help ourselves and our clients deal with transitions in their life as a stepping stone to a transformed way of living.
Read MoreWhat is a Family Trust?
A Suresh
Executive Director, PropSevaⓇ
February 18, 2020
Reading Time: 3 minutes We have all heard about family trusts. What exactly are they and how do they work? In order to advise our clients about making use of tools like these for the protection of their assets, welfare of their family and for the purpose of estate planning, we need to understand the basics better ourselves. This week’s article by Mr. A Suresh talks about family trust and how this device helps achieve various objectives. Read on and get a step closer to the better client experience.
Read MoreXIRR v/s CAGR: Do you know the difference?
Jinay Savla
Founder, Indigenous Investors
February 14, 2020
Reading Time: 5 minutes “Kitna Milega?” is one question most of us have to answer while dealing with our clients- existing or prospective. While we might explain all the various things to be kept in mind while making investments, Returns end up having Top-of-the-mind value for most investors. So, we invariably talk about returns. CAGR, XIRR, annualised returns are commonly used terminologies. However, Do we know that CAGR and XIRR, while very similar are actually different concepts? Do we know that they represent returns for different types of investment flows? And if we know that, do we still end up using them interchangeably? Let’s get back to the classroom with this quick read. Read on and then reflect on whether we have been using these terms right
Read MoreShabari’s love and devotion
Amit Trivedi
Owner, Karmayog Knowledge Academy
February 4, 2020
Reading Time: 2 minutes The role of an advisor is tricky. We are to ensure the best interests of the client but we do not work in a vacuum. This means that we interact with clients and deal with their perception of us and our advice. A lot of times, its easy to get swayed by their behaviour, reactions and feedback. Should we then be reactive and do what makes the client happy? Or should we do what is good for the client even if it does not amuse the client? In today’s article, Mr. Amit Trivedi beautifully explains this daily dilemma that we all face with an analogy that is sure to strike a chord with us all. Read on to know how to tread this tricky path…
Read MoreLearning from your enemies
Amit Trivedi
Owner, Karmayog Knowledge Academy
December 3, 2019
Reading Time: 2 minutes Today’s article by Amit Trivedi talks about humility and regard for our competitors and for the risks that we face as advisors along with the risks that our clients face. Learning from someone who you respect and and are in awe of is very easy but doing so from an adversary or competitor, especially when your ideologies/experience/scale of business do not match does not come easily to us. However, this is one of the greatest sources of learning and we cannot benefit from it unless we are humble. With some amazingly drawn parallels, this article teaches us that underestimation of the knowledge and experience of others is one of the worst mistakes one could make and it can lead to us losing out on learning some great lessons. Read on and share your experiences of learning from unexpected quarters..
Read MoreIndia’s Retirement Saga and the Unusual Love for Real Estate and Gold
Jinay Savla
Founder, Indigenous Investors
November 29, 2019
Reading Time: 5 minutes Today’s article talks about a very deep rooted aspect of the Indian investing psychology-investing in physical assets. Over the years, the Indian investing population has been very openly affectionate towards certain classes of assets, and while that may have worked for some people in the past, changing times require a shift in the investment psyche too. Jinay Savla dives into the past that has culminated into this thought process, how it is affecting the investing present and what should be the way ahead in this interesting piece. Do share your views on this and your experiences with clients in the comments section below the article.
Read MoreWhat is maternity cover under health insurance?
Dhirendra Mahyavanshi
Founder, Turtlemint
November 26, 2019
Reading Time: 3 minutes As financial planners, we assert the importance of having adequate medical insurance all the time. While having a basic cover is essential, there are a lot of added benefits that health policies have now started providing which can help save a lot of money for your clients. Maternity benefits are one such type. Read on to understand how this coverage works, and advise your client in a smarter way.
Read MoreAMFI Due Diligence Process for MFDs – A Complete Guide
Sujata Kabraji
Independant Financial Advisor
November 22, 2019
Reading Time: 3 minutes Today’s topic is about something we dread but cannot avoid- AMFI Due diligence and compliance! If the thought of this exercise gives you he chills, you have come to the correct place. Sujata Kabraji demystifies this process for us and walks us through the formalities involved in completing due diligence and ensuring a smooth audit process for financial advisors. She takes us through the various sections involved and breaks them down to a level where it does not appear like a regulatory demon staring us in the face. Infact, according to her, this process helps in improving efficiency of the business. Want to know how? Read on
Read MoreWhat is the Directors’ & Officers’ (D&O) Liability Insurance?
Vineet Kamra
Senior Vice President, India Insure
November 19, 2019
Reading Time: 2 minutes Personal financial advisory often spills over to other aspects of our clients’ lives. We sometimes find ourselves in discussions concerning our clients’ work and business as well. Since we deal with a lot of people from different backgrounds and are exposed to a whole range of problems faced by people, we are in a better position to give perspective and guidance to our clients even in matters that need not be our specialty. Today, Mr.Vineet walks us through the Directors’ & Officers’ Liability Insurance cover so that we are in a better position to show this option to our entrepreneurial clients. Small and mid sized businesses often do not have the time and resources to seek professional help for issues like protection against claims from stakeholders against managerial staff, officers and actions. It is here that you can step in and ensure your client has in place a good risk management system by using this product. Read on and share your stories with us too.
Read MoreThe Present is the Future of the Past
Morgan Housel
Partner, The Collaborative Fund
November 15, 2019
Reading Time: 3 minutes While talking about a lot of things, we talk about not getting lost in the details and focusing on the bigger picture. For example, the market climbs 500 points in a day, and we try to shift focus from the short term euphoria to the actual events/sentiments that triggered this spike. No imagine that these actual events are in fact the smaller details of an even bigger picture. A picture to see which we need a fundamental step back in our thinking. Our team stumbled across a wonderful piece by Morgan Housel that talks about what caused these events that in turn cause changes in our society and economy and shape it. What are the super-macro factors that make the world that we live in today, what it is. While this is not a hardcore finance article, it is sure to open up our minds and encourage a more analytical way of thinking and reasoning. Read on this abridged piece and if you do find it engrossing, view the original article through the link at the end of this post.
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