“Mutual Funds are subject to market risk. Please read the offer document carefully before investing”. All of us have heard this on television but not many youngsters are even sure of what ‘mutual fund’ actually means. Quoting Benjamin Franklin “An investment in knowledge pays the best interest”, it is important that the young generation know how to create wealth as well as are aware of wealth management.
It is at this juncture that Mr. Gajendra Kothari stepped in and conducted a very insightful session leaving the students of TAPMI with an important question – “We work hard for money, does our money work equally hard for us?”
Mr. Gajendra Kothari, CFA, CAIA, ICFA is Managing Director & CEO of Etica Wealth Management Pvt. Ltd. He has more than nine years of experience encompassing both Indian and overseas capital markets and has also been featured as Top 10 Financial Planners in India by jagoadvisor.com
Beginning the session with a short film ‘One Idiot’ (an IDFC Foundation Initiative), Mr. Kothari introduced the point – never let your money sit idle, teach it how to work for you and you will reap rewards. With the movie, the concept of SIP or Systematic Investment Planning was also brought to light.
The interactive session had TV advertisements woven with examples of Mr. Kothari’s personal investments and it helped students get a clearer picture of different kinds of investment options, suitable times for each, pros and cons of debt and equity, the power of compounding, the fact that inflation is an invisible tax and that lifestyle inflation is a time bomb. He stressed on the fact that it is essential to start investing early to create maximum wealth and that today not investing in equity is risky and not the other way round.
He also mentioned that if we manage our wealth smartly, we could participate in a profitable company’s returns and not merely be a lender. He also helped bust many myths about mutual funds, talking about their advantages as well as disadvantages. In due course of the presentation, the students were exposed to new concepts like Term Insurance Policy and Liquid funds. He concluded by emphasizing that “An investor’s chief problem, and even his worst enemy, is likely to be himself – Benjamin Graham”. The session came to an end with the student giving a standing ovation to the guest followed by the MIP team extending the vote of thanks on behalf of the TAPMI family.