Wealth Generation-Technique.
The process of getting rich is initiated by earning significantly over the current expenditure levels resulting in surplus. More importantly it requires this surplus - the resulting cash - is invested in proper financial instruments. This means that both the reliability of the final inflow from the investment and good returns from the investment are ensured. All this is easier said than done as could be seen from the actual experience. The objective of this advisory firm is therefore to guide the client through the entire wealth generation process. The process involves
- Estimating the target achievable range of future wealth.
- Management of investment returns, volatility risks, risk of investment impairment and incidental risks of interest rate fluctuation, inflation and transaction costs.
- Critically employ the Wonder Function (WF) pf compounded annual growth of investments.
- Tax planning and management
- Liquidity and adverse scenario management.
The key investment avenues are of course:
- A: Debt - meaning thereby acquiring interest bearing instruments.
- B: Equity based investments which involve greater management competence and incidentally higher risk.
Wealth Generation - Process
It is imperative to understand that taking no risk(which itself is non existent in reality) is the greatest risk. This can be easily explained as making investments which typically return _less _than the current inflation rate resulting in permanent and progressive reduction of wealth.
The parameter of richness is of course wealth which incidentally can be crystallised as a number, say Rupees One crore. The moment richness or wealth is defined as a number it becomes a number game or in other words subject to computational dynamics. The Wonder Function( WF) is then the Compounded Annual Growth Rate (CAGR).
Have CAGR on your side. It is easy to recall the India's population is resultant of CAGR which never exceeded 2.5% Per Annum! A sustained CAGR above the inflation rate requires understanding of interest rate environment, cost of risk taking, transaction cost and keeping the tight least of investment objectives and investment management.
What we offer is a safe, appropriate way to achieve this, all the time managing the tax implications as well. The IT developments make both the necessary computations /stress analysis easy and web enabled and can be interactive with clients as well, customised to customer comfort. The parameter of safety is critical but can be easily confused with apprehensions which are not well founded. This can be said as thinking of eventualities which are either insignificant or remote enough not to impact the actual investment strategy.
It is felt that the purpose of achieving targets or results in line with actual family needs which are highly uncertain and subjective is not always practical. Thus the investments should not be need based but result based! The clarity of this approach results in less confusion and ease of wealth management and also comes from an understanding that then financial markets are developed enough to cater to sudden or unpredictable expenditure. This is done by ability to borrow against investments or efficient liquidation of investments.The idea is to develop an exclusive client based long term programme and approach, give effective periodical feedbacks and reviews and maintain client comfort at the same time! We never physically handle your money' you do! Take a prior appointment and realise your dreams.