Dec 27

How to Invest your Money in 2018

Market Outlook IN 2018—30% OR 50%?


The other day, a TV channel asked me: “Suresh, where will the Sensex be in 2018?”

I said: “I don’t know.”

Do you know why I said that?

Let’s rewind to a year ago, in December 2016. People asked leading market analysts and pundits their opinion. This is what two of them said:

I would not use the word gloomy but I would say it is a challenging year as we enter 2017. – Morgan Stanley.

I don’t see the Sensex going below 26,000, but it is going to be a struggle to get to 29,000. My range for 2017 on the Sensex would be 26,000 to 29,000– CreditSuisse.

Both of them, top players with hundreds of in-house experts, were dead wrong.

In 2017, the one-year return of large cap funds was 30%, multicap 38%, mid-cap 43% and the much-feared small cap 55 per cent(Whooping 9- year of FD return).

 I too went wrong. I bet big on large and multicap in 2017 than on mid- and small cap. But I am happy with the return my investors got. A solid double-digit return in an uncertain year.

Also, remember that market returns and investor returns do not match most of the time. When the chips are down, the investors try do bottom fishing never does it. When the markets are high, they wait for it to correct. Most of the time, their calls are never right.

Now you understand the difficulty in trying to predict the market. Yet, every year, investors while putting in their money want to know how much they should expect.

My suggestion is that it depends on your goals and your appetite for risk.


Global Investment Outlook 2018:-

If your investment horizon is one year, it is better settle for 6-6.5% in safe investments. For 1-3 years, you can expect 10-13%; for 5 years and above, if you can rebalance the portfolio when needed, you can expect returns in excess of 15%.With US market showing inverted yield curve these may be by and large good return expectation.

While investing in the equity market, do not predict the yearly movement. If you do, you should be prepared for surprises. Also, don’t be greedy. When you set your eyes on a 50% per cent profit, you should be able to rebalance your portfolio for smooth investment experience.

A famous market expert, Nick Murray, once said: When you invest in stocks, you are an owner of business. When you invest in bonds, you are the lender to business. Everything else is commentary.



Wish you a happy and joyful investing year.














Dec 27

Tips to build your Wealth for early retirement


I am 34, working abroad in an engineering company. My wife (32) and daughter (4) live in India. My parents are farmers and are financially dependent on me. After 10 years, I will return to India. I have invested only in fixed deposits. How can I reach my goals?





How to Built your wealth quickly:-

With your current investments, you can envisage returning to India in five years. Since you plan to work after your return, even if you earn just enough to maintain your life-style and fund your daughter’s secondary education, you can live comfortably in India and spend time with your family than live away from them in an African country.

Although you have not spread your investments to equity, you have utilised your surplus well. If you park your fixed deposits in an asset allocation of 50:50 in equity mutual fund and debt, you can meet all the goals, barring retirement.

You need a retirement corpus of Rs.3.3 crore. So, if you deploy the monthly surplus of Rs.95,000 at 12 per cent return, in five years it will be Rs.77.5 lakh. This can be utilised as an emergency fund and for your vacation. During your next visit, try buying a term insurance with a public-sector insurer.

The writer is a registered investment advisor and founder, Send your queries to

(This article was published on December 24, 2017, in the Hindu Business Line)














Dec 19

Effective Strategy To Expand Your Business



I am 34, and a single parent. I run a beauty parlour. My daughter is five years old. My parents support me and I live with them. They are financially independent. I wish to give my daughter a sound education. I also want to expand my business. Please tell me how to go about it.

Narmatha s

Ideas to Scale Up your Small Business:-

It is a matter of pride to expand one’s business but do remember, you need the financial bandwidth to hire good hands, manage accounts and inventories, while scaling up.

Any business takes time to stabilise. Hence, factor in the running cost of the parlour for 1-2 years. For expansion, explore the possibility of a tie-up with an aggregator. They will help you on recruitment, accounts, business strategies and inventories.

Although you may need to share some profits, a tie-up will help you scale the business. Your capital will also come down. Moreover, since the aggregator buys high volumes, you can get the materials at a good discount than if you were buying from the market. This will offset the profit sharing.

Set aside the fixed deposits as emergency fund. Since the surplus is limited, invest for business expansion now and for other goals from 2020.

Expand in stages, don’t open too many outlets in 2020 itself. Invest predominantly in debt funds and 20 per cent in balanced mutual fund.

For protection, buy health and term insurance for Rs.4 lakh and Rs.75 lakh, respectively.

The writer is a registered investment advisor and founder, Send your queries to

(This article was published on December 17, 2017,in The Hindu Business Line).

Dec 14

How Should I Invest MY Retirement Proceeds .



I am 55, I have taken VRS from government service. My wife is a home-maker. My son, 23, works in a private company. His aspiration is to enter the cine field. I am planning to start automobile spare parts manufacturing with my friend. I have no experience in the field. Is it a good idea to invest my retirement proceeds?


Ideas for Invest Retirement Proceeds:-

Your intention to support your son till he establishes himself in the cine industry is understandable. But we know that it is a highly competitive industry and it takes time to get a breakthrough. Since he is young and single, most of his needs are day-to-day expenses that may be in the ₹15,000-20,000 range, per month.

To support this expense, you are taking the big risk of starting a business in unfamiliar terrain. Also, investing your entire savings on this is totally unwarranted. Not only that, in case your business needs more capital, you will have to borrow, or sell your plot. This will further reduce your asset. Moreover, as inflation keeps growing, your monthly requirement will almost double after 10 years. So, preserve the capital to lead a peaceful life.

Since you have the appetite for business, go for asset allocation and invest 50 per cent of the investments in balanced funds. This will help you earn a better portfolio return than your current interest of 7.25 per cent. A piece of advice, if the market gives abnormal returns, say 25-30 per cent, please rebalance the portfolio.

Withdraw 8 per cent every month to meet family expenses. This will help your investments grow. Drop the idea of starting a business.

The writer is a registered investment advisor and founder, Send your queries to

(This article was published on December 10, 2017 in The Hindu Business Line.



Dec 14

Asset allocation is good bet for stable return

Should you put your money in equity, bonds, real estate and gold or should you invest in only one area?

This is a question that many investors ask.

Some say—rightly—that investing in a single asset will deliver better returns than putting the eggs in different baskets.

But they fail to understand one thing: if the asset underperforms, they see their money erode and not even match inflation (see table). Read the rest of this entry »

Dec 08

வெளிநாட்டில் வருமானம்… இந்தியாவில் எதிர்காலம்!

இத்தொடரின் மற்ற பாகங்கள்:
நிம்மதி தரும் நிதித் திட்டம் – 21 – வெளிநாட்டில் வருமானம்… இந்தியாவில் எதிர்காலம்!

ஓவியம்: பாரதிராஜா
வெளிநாடு சென்று கைநிறையச் சம்பாதிக்கும் பலரில், சிலர் மட்டுமே சரியாகத் திட்டமிட்டு முதலீடு செய்கிறார்கள். அந்தச் சிலரில் செந்தில்குமாரும் ஒருவர் எனலாம். துபாய்க்குச் சென்று நன்றாகச் சம்பாதிக்கும் செந்தில்குமார் என்ன சொல்கிறார் எனப் பார்ப்போம்… Read the rest of this entry »

Dec 06

Golden Rules to Reach your Goals

I am 40, employed in the Gulf. My wife lives in India. My daughter is five and son, three. I have constructed two houses in Chennai using all my savings.
My parents and parents-in-law live in these houses. I am planning to work in the Gulf till 53 and then retire. I am okay about investing in equity. Do let me know when I can reach my goals. Read the rest of this entry »

Nov 30

Best Way to Investment your surplus income.

My son, 39, works for a software company. His wife is 37.They have a four-year old daughter. Although they earn well, my son shows no interest in deploying the surplus. His SB account balance is around ?50 lakh. Since he is keen to send his daughter to the US for graduation studies, he may need Read the rest of this entry »

Nov 22

How to Manage Retirement Funds When interest rate crash.

The most common question that investors ask me is how to manage their retirement funds at a time when interest rates are coming down.

This is a tough question. Those who have not planned their retirement will be hit hard.Many people lose their jobs when they are in their 50s and have major expenses such Read the rest of this entry »

Nov 20

How do I Manage Money for Setting up Financial Goals

I am 47 and self-employed. My wife, 43, is a home-maker. My son is in his first year of engineering, daughter in class 8. After returning to India, I tried my hand at a few business ventures with my savings but they all failed. Now I am doing catering, which gives me some decent income. To clear my liability, I have sold the property. How do I meet my financial goals?


Work pressure spurs many to try their hand at entrepreneurship but they fail to have a business plan. Catering being a low-capital business do concentrate and build from here. With a limited budget, you can save only for your daughter’s marriage.
So here we are suggesting you some basic steps to create your financial spreadsheet to complete your household budget.
For your son’s post-graduation fees, allocate ?15 lakh from the savings account and for the balance ask him to avail education loan. To meet your present monthly expenses at retirement you need a corpus of ?1.91 crore and it should earn 1 percent over and above inflation to support you till you turn 85. Allocate ?20 lakh from your savings account for this goal.
If you earn 12 percent return at retirement, it will be worth ?87.3 lakh. To meet the shortfall you need to invest ?27,900. Once your surplus increases, plan to achieve your remaining financial goals. During retirement, if you still face the issue in your financial account, sell the commercial property; it will help you bridge the shortfall and you can save your money.
Reduce health policy to ?5 lakh and buy either auto restoration or top-up policy to lower premium outgo. Buy term insurance with the difference in the premium.


The writer is a SEBI-registered investment advisor and Founder,
Send your queries to

This article was published in The Hindu Business Line (20.11.17)

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