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.
8 Motor Insurance Add-ons that will save you money
Purandar Bhavani
Director, India Insure
October 11, 2019
Reading Time: 7 minutes While advising clients about handling their personal finances, we often look for ways and means to add value to other aspects of their life and money. Motor Insurance is one such aspect. While everyone knows about Third Party Liability Insurance being mandatory, most are often not aware about a lot of other benefits made available by insurers. This week’s article talks about 8 such benefits that your clients can opt for to get a superior experience. Mr. Purandar Bhavani breaks down these 8 benefits for us into very simple terms, so that we can extend our area of advisory to Motor Insurance as well.
Read MoreWhy should you invest out of India?
Neil Parikh
CEO, PPFAS Mutual Fund
October 4, 2019
Reading Time: 2 minutes Diversification in investment is one principle most advisors swear by. We talk of diversifying across asset classes, across investment horizons, across market capitalisation, etc. But what happens once we are done diversifying within the domestic market? What more can you do for your clients, that may possibly help you enhance their alpha? International diversification of investments is often not just a way to enhance returns but to also reduce risk(if the markets of the two countries in question have low correlation). In this piece, Mr. Neil Parikh breaks down this concept for us and makes a compelling case for global diversification. Read on to know more.
Read MoreThe market is a great teacher
Amit Trivedi
Owner, Karmayog Knowledge Academy
September 30, 2019
Reading Time: 2 minutes A lot of us suffer from the “know-it-all” syndrome, at least at some point in time in our lives. Especially in situations where things go the way we think they should. We get a sense of being in control, a sense of supremacy and we sometimes leave behind the virtue of humility. Through today’s article, Mr. Amit Trivedi shows us how the greatest of experts can also be clueless about how to tackle a particular situation. The only way out of such tricky situations is with humility and acceptance of the fact that we are not supreme and that our learning, in the market or otherwise is never complete. It was and will be an on-going process of thought evolution. Read through this crisp piece to know who the ultimate teacher is and why we must accept their superiority over us.
Read MoreWho can access my data?: DEPA, Sahamati and Account Aggregators (AA)
Nisha Sanghavi
Founder, Fynomics and Co-founder, Promore Fintech Private Limited
September 27, 2019
Reading Time: 3 minutes There is a lot of chatter about data protection and privacy concerns, leaking of data, misuse of personal information shared with an entity for specific purposes and unauthorized monetization of such data by the entities that are supposed to protect it. There is, however, a very useful flip side to the sharing of data between entities provided it is done for the right reasons, in a regulated manner and with the consent of those whose details make up such data. This week, Nisha Sanghavi takes us through this other side of the discussion and throws light on a few initiatives and developments on this front. Read on to know how data aggregation and sharing in this proposed way is sure to benefit you as well as your clients.
Read MoreFinancial Security for Special Needs Children
A Suresh
Executive Director, PropSevaⓇ
September 24, 2019
Reading Time: 3 minutes Financial advisors are in essence the financial guardians of the families that they cater too. It is their duty to advise them according to what works best for them after minutely studying their individual scenario. Every family has specific needs over and above those general to all. One such need arises when there are children with special needs in the family. Since they are not equipped to handle their own finances, often all throughout their life, if becomes essential to help your client execute a financial plan that is also effective posthumously. Read on to know what Mr. A Suresh has to say about handling this aspect of financial planning and truly touch your clients’ life.
Read MoreHow can we approach Asset Allocation?
Bharat Phatak
Owner, Wealth Managers
September 20, 2019
Reading Time: 2 minutes It is as important to explain the thought behind the asset allocation of a portfolio to your client as it is to have a good one in place. This dialogue needs to be in a language that is easy and relatable for the client. Sometimes a conventional allocation mix might not be the best idea owing to various reasons. Explaining these to your client is an essential step towards financial counselling, which must go hand in hand with financial planning. This week, we have Mr. Bharat Phatak explain a dual approach towards asset allocation which is sure to aid you in your conversation with your clients. Read on and share your thoughts on asset allocation and the need to discuss the same with the clients.
Read MoreHow to protect insurance claims from creditors?
Dhirendra Mahyavanshi
Founder, Turtlemint
September 17, 2019
Reading Time: 4 minutes Imagine this: You had a 3 sentence conversation with your client where you discussed a benefit that the law provides to the citizens with them and got them to act on it and take advantage of the same. A few years down the line the client unfortunately passed away and at the time of his death had a huge business loan on outstanding to his name. That 3 sentence conversation made sure that his wife and kids did not have to worry about their livelihood source(the insurance claim money) being snatched away from them. Now imagine the relief you provided to the family of this client and the satisfaction you felt doing so. Read on to understand the benefits provided under the Married Women’s Property Act in an article penned by Dhirendra Mahyavanshi and make this difference to your clients’ life today.
Read MoreIs Family Trust Safer than a Will?
Jatin Popat
Founder, Willjini.com
September 13, 2019
Reading Time: 4 minutes Time and again. we have emphasized on the need for financial advisors to keep up with the various tools, techniques, approaches, methods and ideologies that can help them manage their clients’ money more effectively. Succession and estate planning is a very crucial and vital aspect of money management. This week, we have Mr. Jatin Popat talk about the concept of a Family Trust as a tool to effect succession of assets and businesses in a more streamlined way as compared to other means like a Will. He breaks down the concept to the fundamental level and takes a through a quick crash course on this topic. The hope is to enable you to advise your clients better so that we can evolve to a society that does not see rampant cases of unresolvable property disputes, locked assets, long court battles, alienation of genuine beneficiaries from a bequest due to ineffective succession planning and unnecessary family feuds. Read on and do share with us how this piece helped you to help your clients better.
Read MoreNominee V/s Legal Heir | What is the difference?
Toral Shah
Partner of GBCA & Associates LLP
September 10, 2019
Reading Time: 4 minutes Making a Will is almost a social taboo in our country. Often equated with anticipation of death or breaking up of a family, this is the most neglected aspect of personal finance. Nomination, while it still exists as a concept, is often not given enough importance. It is either not made, or not updated which is equally bad. We, as advisors are slated to play a phenomenal role in this aspect if we are able to convince our clients to pay as much attention to the distribution and transmission of their assets as they pay to accumulate them. For this, some very crucial concepts need to be clearly understood. This week, we have CA Toral Shah and Khushbu Chheda tackle the topic of the rights of a nominee versus those of a legal heir. This interesting read has the potential to bring tremendous value to your advisory practice and the lives of your clients.
Read MoreYeh sab kya ho raha hai? : Debt mutual funds
Lakshmi Iyer
Chief Investment Officer (Debt) & Head Products, Kotak Mahindra Asset Management Company (KMAMC)
September 6, 2019
Reading Time: 3 minutes Stop and breathe. That’s what we all need to do. Especially in the current scenario in the fixed income category. And the next thing to do should be to understand again the fundamental principles of this category. As advisors, we often feel a disconnect from the basics of our profession Time to get the fundamentals right about debt mutual funds and investments so that you can explain the same to your client and not have them panic call you and have knee-jerk reactions to uncertainties in this segment thereby losing out on investment opportunities. Read on as Ms. Lakshmi Iyer sets the record straight about what to expect and what to do when investing in debt funds..
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