A Discussion on: Personal Finance During Unprecedented Times
Planning for a safe and secure financial future in these uncertain times is a need of the hour. Find out how you can manage your personal finances and come out financially fitter and stronger.
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00:00 Hello and welcome to this investor education and awareness initiative of Aditya Birla Mutual
00:09 Fund in association with your favorite personal finance magazine, Outlook Money.
00:14 I am Vishwi, your host for the day.
00:16 As we all know that we are currently going through an unprecedented global crisis, which
00:21 has impacted each and every aspect of our lives, personal as well as professional.
00:25 Of course, markets have recovered since then, but volatility is still there.
00:29 And when circumstances are so unique, the regular way of doing things may not do the
00:33 trick.
00:34 And same is true when it comes to personal finance.
00:36 In such times, perhaps there is need to revisit the rulebook and look beyond the conventional
00:42 investment strategies that one may deploy during these regular times.
00:45 To help our viewers find that unique personal finance approach, we have with us some eminent
00:51 personalities with extensive experience and expertise to talk about financial planning
00:56 in unprecedented times, the theme of today's webinar.
00:59 Our first guest is Mr. K S Rao, head of investor education and distribution development for
01:05 Aditya Birla Sun Life Asset Management Company Limited.
01:08 Mr. Rao, an alumnus of IIM Calcutta, has spent over two decades in the mutual fund industry
01:14 and in his current role, he leads his organization's efforts towards investor education and distribution
01:20 development.
01:21 We are also joined by Mr. Amit Trivedi, author, speaker, trainer and blogger with over 26
01:26 years of professional experience in capital markets.
01:29 As a trainer, he has trained over 83,000 participants to almost 1300 workshops across 130 different
01:35 locations across the country.
01:37 He has authored four books on personal finance and investment.
01:39 Both Mr. Rao and Mr. Trivedi have done extensive work in the area of investor education.
01:45 So let's start and my first question is for Mr. Rao.
01:48 Mr. Rao, as we all know that these are unprecedented times with never before like lockdown imposed
01:53 across the country and in fact across the globe and the global economy was brought to
01:58 a virtual crawl during these times through deliberate government measures.
02:04 So how do you see these events, you know, impact the economy and of course, by extension,
02:08 the investment universe going forward?
02:10 Hello to all and it is great to be here on the panel with Vishal and Amit.
02:16 Vishal, it's like it's already impacted the economy.
02:19 It's over 100 days now we have seen the sectors, it has impacted a major part of the economy.
02:24 There is a contraction in the GDP, not only in India, but across the globe.
02:28 So it always impacts on your personal finance.
02:30 In fact, Amit and me, we always keep discussing when it is on the personal finance, it is
02:35 for each of us, it impacts in a very different way.
02:38 You're a person before the finance and when the economy is impacted in various ways, yes,
02:43 GDP contraction, there are a lot many job losses and many sectors are reeling into like,
02:48 you know, lock and unlock situation.
02:51 And this is a time as you rightly said, it is unprecedented.
02:55 And it is like it is a time to look at your personal finances in a very different way.
03:00 Yes, like there is one positive part is some parts of the economy where it is open, things
03:05 are looking better.
03:06 And like, you know, it is it's picking up and the rural sector is predominantly not
03:11 affected.
03:12 FMCG sector is doing pretty good.
03:14 And a couple of other sectors are coming in.
03:16 But some sectors will have a larger impact.
03:19 Like it could be tourism, it could be hospitality.
03:22 You know, net net, everyone has impacted.
03:24 And unfortunately, like COVID is a concern of the health.
03:28 But the second best concern is for the wealth.
03:30 I think it's a time for everyone to take a conscious call.
03:33 And we need to relook our entire finances in a very different way.
03:37 Because your goals, everything has gone upside down.
03:40 And it's a time to look at in a very refreshing way.
03:44 So you're right, but I have a follow up question on this.
03:47 You know, we have, when this whole thing started, we were not expecting it to go on for so long.
03:53 So right now, you know, where do you see things going from here?
03:57 And how long do you think that the impact will be there?
04:00 Considering, you know, the global recession lasted for years, do you see similar thing
04:05 happening this time around?
04:06 I think more than the recession, first of all, let us, we need to appreciate the great
04:11 roles done by the governments across I think, either in India and globally.
04:16 And second, if you come to India and the government of India, when it's largely addressed the
04:22 reforms on the supply side, and hopefully the things will be addressed on the demand
04:27 side, that may give us a positive side of it.
04:30 And if you have seen a week before when things are coming next, reform stimulus side will
04:34 be coming in the moment you see some green shots around and that way things should be
04:39 a little positive and like looking at I think there is a light at the end of the tunnel.
04:45 COVID may not last longer, but even if it is lost longer, we are going to live with
04:51 it and we are getting adjusted to it.
04:54 And life is coming reasonably to the normal, not the old normal, which we have seen, but
04:58 the new normal with the social distance, etc.
05:01 At this point of time, I personally feel like, you know, maybe this year is a pause year.
05:07 And the next year could be a growth year.
05:09 And 2022 is expected to do predominantly well.
05:13 In fact, I was going through a report, the Nifty earnings in 2022 can look at a little
05:18 on the bullish mode and 2023 it will settle down.
05:21 Maybe two to three years perspective, we are in a very comfortable, I mean, you know, we
05:25 can be optimistic, maybe a pragmatic optimism, it's not a pessimistic optimism.
05:30 Right.
05:31 So pragmatic optimism and the future, you know, the green shoots are visible and future might
05:35 be better than, will be better than.
05:39 I mean to say there could be a strong recovery possible, maybe six months, maybe two quarters
05:44 down the line.
05:45 But recovery is already seen in major sectors.
05:47 The rural sector one need to be very, very positive now.
05:50 Agriculture is looking very good.
05:51 That can be, that can provide a lot of demand.
05:54 Like, you know, 60 to 70% of our population is on agriculture.
05:59 And that way 60 to 70% of us are not affected by chance.
06:02 You know, that's that I look at.
06:05 And another process I look at is most of the companies are redesigning their business operations.
06:10 And with that redesigning, these companies will come back into the normalcy and they
06:14 do better.
06:15 Then it will add to the earnings.
06:17 And it's like in the past, we have seen every recession or every downsize, it has immediately
06:23 followed by upside.
06:24 And people today, we are talking about the recovery.
06:27 And what you know, we don't know which alphabet of the recovery, whether it's a U-shape or
06:30 V-shape.
06:31 So I think whichever shape is the recovery is a positive side in the current scenario.
06:36 Right.
06:37 That's reassuring.
06:38 And since you talked about, you know, job losses and salary cuts that people have faced,
06:42 my next question is for Mr. Trivedi on the very same issue.
06:47 This was a period when, you know, several people saw steep salary cuts and even job
06:51 losses.
06:52 Those who are in business, they had to face severe liquidity problems, cash flow problems,
06:56 turning their whole financial plans upside down.
06:58 Because, you know, most of the financial plans are dependent on regular investment, you know,
07:02 going into them.
07:03 But these times led to, you know, disruption in that.
07:06 Thanks, Vishal, for this brilliant question.
07:09 It's very pertinent in these times.
07:11 Now, I would actually, you know, want to divide the whole universe into four different categories.
07:17 The first one, who's lost the job or whose business is stopped.
07:21 Second, where there's a drop in income.
07:24 Third, who's afraid, who's fearing the job loss or loss in income, but the current level
07:31 is maintained.
07:32 And the fourth, who's actually benefited out of this whole situation.
07:36 So there are some, a small segment of the market, which is like a lot of like the video
07:42 conferencing technology companies, for example, where they've actually seen the growth happening.
07:47 But we'll keep that aside.
07:48 Let's focus on the first two, which is either loss of job or loss in income, drop in income
07:54 versus those who fear that coming.
07:57 Now, if you fear that coming, you seriously need to reassess the whole situation and separate
08:03 the reality from your fears.
08:06 If there is potential to lose job, then you need to take a fresh guard and play the game
08:13 in a different manner.
08:14 But if you lost the job or the income is dropped, then it's a different situation altogether.
08:18 I would look at it as a parallel to a cricket test match.
08:22 When on day one, it's a batting beauty, and you are scoring very comfortably.
08:26 That was probably 2018 and 19.
08:28 Today in 2020, we have reached the fourth or fifth day, and the wicket is turning.
08:34 So today, survival becomes more important for a lot of people.
08:38 So I would say, look at your finances and put them into a proper order and do an assessment
08:43 of each of these elements.
08:45 So there are four things that I would suggest.
08:48 The first and foremost is look at your current liquidity situation, which is more about your
08:54 immediate and short term expenses.
08:57 Have you provided for that?
08:58 Are there any loan EMIs that you need to pay?
09:01 A lot of people have looked at moratorium, but eventually, someday you will have to pay
09:06 that.
09:07 So have you provided for that or is there enough provision?
09:09 That's number one.
09:10 The second is risk management, which is about insurance.
09:14 And I would put priority to health insurance here, not just because of the pandemic, but
09:18 otherwise also, if the main earning member goes out of a job because of a health issue
09:24 or some other member gets ill and because of that, there are higher expenses.
09:29 So that's the second.
09:30 And then third comes the funding of goals.
09:34 Now, within the funding of goals, if the goals are near term, and you don't have enough money
09:40 accumulated or there is a drop in value because of the market downturn, in that case, loan
09:46 becomes an option.
09:47 Otherwise, you will have to delay the goal.
09:50 But if the goal is far in future, then probably you need not do much, this too shall pass.
09:56 So as the time passes and you come back to normal, you may over a period of time recalibrate
10:01 those goals.
10:02 But primarily, the liquidity requirement is critical, where I would put five different
10:07 things that one needs to look at.
10:09 Number one, what has happened to your monthly expenses?
10:12 So we were talking to somebody the other day, one financial advisor, and he had a conversation
10:16 with this client who got a letter from the company saying your salary will be cut by
10:22 15%.
10:23 So 15% was a reasonably large drop, and he was mentally not prepared for that.
10:31 So he came to his financial advisor and said, I want to stop my SIPs.
10:35 So send me the forms.
10:37 This financial advisor said, okay, I'm sending you the forms.
10:40 But then by the time the forms reach the client, this advisor did some mental calculation and
10:47 then picked up the phone and spoke to the client and said, let us list down your expenses.
10:51 And then they figured out that while the income had dropped by 15%, the expenses also had
10:56 come down by roughly 17 to 18%, which means more or less you are on par.
11:03 There was no change required when it comes to fresh investments.
11:09 So this was an assessment that one needs to do.
11:11 The expenses also changed.
11:13 That's number one.
11:14 If the expenses have changed, can they continue for a long or after the lockdown is over,
11:19 your expenses will go back?
11:21 That's number one.
11:22 Number two, what is the risk on income?
11:24 Has it come down already?
11:25 And if it has come down, how long will it take to go back to the previous levels of
11:29 income?
11:31 And that period is where the income minus expense equation needs to be seriously looked
11:37 at.
11:38 And you need to have contingency fund to take care of that period.
11:42 Fourth point, is there sufficient insurance?
11:45 If there is insufficient insurance, then self-insurance is the only way which again, increases the
11:51 need for some contingency fund just in case something happens.
11:55 And obviously, the fifth one is if there are any short term commitments towards loans.
12:01 So one needs to do this analysis of liquidity requirements and then take the decisions forward.
12:08 Without this assessment, it's impossible to give any proper answer as Mr. Rao mentioned
12:15 just some time back.
12:16 It is personal finance that's personal comes first.
12:19 So each individual's personal situation needs to be assessed first.
12:22 What are some personal finance lessons that investors should draw from the events that
12:27 have transpired over the last few months due to the whole crisis?
12:31 And what are the things they can do and the way they can reinvent their investments going
12:37 forward?
12:38 Thanks, Vishal.
12:39 I think Amit has really explained many of the things, what are the lessons to have been
12:44 drawn.
12:45 But it's predominantly, I mean, as the old team we are talking about unprecedented.
12:49 It is like none of us have seen these.
12:52 We have not visualized, like I have not visualized.
12:56 I can stay back at home for the last 20 days and working from home.
13:00 I mean, today this is my 65th webinar I am addressing.
13:03 And it was quite unprecedented.
13:06 I used to travel across the country and do the sessions on in-person.
13:10 And this time, if I can look at many of us, the learnings on the finances itself has undergone
13:15 dramatic change.
13:16 Because as you sit at home, there is the first concern when we started with the lockdown,
13:22 it is all we looked at is how I can protect my life.
13:26 That was a major concern for us.
13:27 Then the second concern has started as we extended these lockdowns, how I can live my
13:32 livelihood.
13:33 In the process of life and livelihood, our lifestyles have gone further.
13:37 Like whatever the lifestyle we had, it is nowhere, like you cannot look at that.
13:42 With that, like most of us are spending habits have changed dramatically.
13:47 Like for example, there is a discretionary spending, there is a non-discretionary spending.
13:52 Today, there is like only on the essentials we are spending and most of the discretionaries
13:57 we have postponed.
13:58 And it is also psychologically like no merc in the garage, merc parked on the society
14:04 where we park the car, I mean, is no more valuable than few lakhs of rupees as an emergency
14:10 fund in your bank account.
14:11 That gives a lot of comfort to us.
14:13 And we all have a majority of the people have shaken with it.
14:16 And people are looking at the money and the whole life itself is very different.
14:21 And when you are looking at your own life, it is very different, your personal finance,
14:25 you look at a lot of lessons we learn, probably whatever we are spending towards the lifestyle,
14:29 whether it is worth, whether it is not worth.
14:32 And I was looking at people's financial goals recently.
14:35 There is a survey which was there and the majority of the people, the one goal got vanishing
14:40 from their list is there is immediate foreign travel or travel abroad or travel with family
14:46 has just got off.
14:47 But there is another area which has happened is everyone was viewing the portfolio with
14:53 a lot of anxiety.
14:54 Market was up and market was down.
14:57 And we are not very sure when it is up, what the way it is going.
15:00 And when the on 26th of March, somebody has looked at the portfolio, if it is a proper
15:04 asset allocation is not there, portfolio would have gone by 30 to 40% down.
15:08 And if it is a proper asset allocation, probably things would have been a little better.
15:11 And the lessons drawn today is like how you can prioritize your finances very differently.
15:18 Like the foremost thing is, people went back and said, let me look at my health insurance
15:23 as a document and really reading the clauses in the health insurance and go back to the
15:29 cupboard and see your life insurance.
15:32 Am I insured it right?
15:33 Am I not insured it right?
15:35 And looking at old finances, like we would have said the last 5, 6, 10 years, we were
15:40 talking money and everything and we would have never bothered about it except the tax
15:45 planning which we would have looked at in the month of January, February and March,
15:49 where most of the Indians plan for their taxes.
15:51 That is the time more insurance companies, they sell the insurance and this is the time
15:56 everyone looked at in a very different, the purpose of insurance is not the taxation,
16:00 purpose of the insurance is my life.
16:02 I think this is what impacted on the personal life very, very differently.
16:06 Even when it comes to other investments, whether my investment is in a right asset class, whether
16:10 it is a wrong asset class, if somebody put the money into the real estate overloaded,
16:14 then he or she would have got confused what to do if something goes for a little longer.
16:19 And if you are exposed to the more of the commodities, then there is another.
16:22 I think every asset class has created a very different kind of uncertainty.
16:27 With this uncertainty, the biggest lessons drawn is people look at like the finance goal
16:33 is not one person's, but it is a family goal, because if it is the finance has impacted
16:37 you, it has impacted the entire family.
16:39 If both of us are working, even if it has impacted the children, then it is the whole
16:43 education system is undergoing change.
16:45 I think then we go back to the basics.
16:48 I have seen when I was talking to many people in the last few days over various webinars
16:54 and interacting with my financial advisor friends, what I could see is people are looking
16:59 at the urgency is the contingency fund, because either there is a job loss or like as Amit
17:05 ji said, or there could be income loss.
17:07 Either side you need to get realigned.
17:10 In this realigned time, you need to prioritize your goals.
17:13 Not every goal at this point of the time is not very important.
17:17 And for example, if you have a retirement goal, and that retirement goal you would have
17:21 looked at one percentage, this is the returns I get, my retirement nest egg is X amounted.
17:26 Like it could be a one crore, it could be high gross, whatever the way you looked at.
17:30 Today looking at the scenario, now the returns on your investment is going to come down.
17:35 People started relooking it.
17:37 Probably the social distancing, one side they are following it up.
17:41 And sometimes this anxiety people also have seen there is a portfolio distancing.
17:45 Let me not get into that anxiety.
17:47 Only I have seen after last week or before last week, when the market turned towards
17:51 up, then people started looking at the portfolio, they have started rebalancing their assets.
17:57 And they are looking at entire thing in a very holistic approach.
18:01 And that has given a very different perspective to them.
18:04 One need to be very serious about the personal finance.
18:06 We cannot neglect, we cannot delegate, and we need to time to involve the families.
18:11 I think truly this new normal has made the spending less, saving more.
18:17 And I personally feel as we go forward, this savings will also be converted into right
18:22 investments because right now we do not know which asset class will perform and everyone
18:26 is at confusion.
18:27 But it has impacted everyone very differently.
18:30 But from what I heard from you, I get the sense that maybe the realization of importance
18:35 of personal finance has also grown due to this crisis because people have faced situations
18:40 which they may not have anticipated.
18:42 And now they realize that financial planning is so much important and maybe for the future
18:47 to meet this kind of situation, hopefully they won't come across this situation again.
18:52 But maybe they will be better prepared and they would want to prepare better through
18:55 proper financial planning.
18:58 And one more thing, since you mentioned about contingency fund, emergency fund, is there
19:02 a need to relook at that?
19:04 We always say that three months salary should be enough for any kind of emergency or maximum
19:11 six months.
19:12 But now we are already in the fifth month of the crisis and it is not expected to, the
19:17 situation is not expected to recover anytime soon.
19:20 So is there a need to revisit that three month to six month rule in this new reality or does
19:27 that still work in this new scenario?
19:30 Yeah I think Vishal, everything we need to revisit definitely.
19:33 I mean not looking at three to six months as a salary, you need to keep in a contingency
19:38 fund, maybe six months of your expenses which includes your insurance premiums and your
19:43 investment installments.
19:44 Are you bucketed for it and are you kept it?
19:47 You are right now it is five months, six months we are entering it.
19:50 There are two ways of looking at it.
19:52 Now the personal finance pundits always tell us you give six months plus another six months
19:57 too.
19:58 But earlier we used to tell when the returns on SIV was lesser, long term is three years
20:03 to five years to now it is 10 years long term.
20:07 And definitely this is the, there is something has been written earlier, something has been
20:12 spoken earlier with a condition like which is prevailing that time.
20:16 Current situation is prevailing very differently and I need to look things in a very different
20:21 perspective.
20:22 Yeah I need to put my six months contingency and also I can ensure there is always keep
20:27 some liquid assets.
20:28 It may not be a contingency but in the need of the hour can I take that money available
20:33 you know where I can redeem and keep it.
20:34 That is where the financial assets play a very vital role.
20:37 I can tell you one great thing about the mutual funds in the last three months or four months.
20:42 This is one asset class whenever you need there was a never liquidity got stopped.
20:47 I want to redeem something it has been given to you.
20:50 Market subsidy, yeah you may have incurred some portfolio losses but if you need money,
20:54 money was available to you.
20:55 I think that contingency yes we need to look at and we need to revisit the entire financial
21:00 plan itself right now and like you know then are you looking at your portfolio based on
21:04 your goals and are your goals are undergoing change and relook at your contingency first,
21:10 relook at your insurance, relooking at your goals.
21:13 I think you need to revamp everything and the foremost is the health insurance and all
21:17 that but you know start with your monthly budgets and we were never looking at, majority
21:22 of us were never looking at monthly budgets.
21:25 You are right people are looking, it is like you know this has given an opportunity for
21:28 us the importance of personal finance.
21:31 We can't delegate it, we can have one wonderful financial advisor but we cannot delegate it.
21:38 Right absolutely right and you mentioned about the markets correcting if somebody looked
21:42 at their portfolio towards the end of March, correction of 30 to 40%.
21:46 So my next question is for Mr. Trivedi.
21:49 See you know equity investors always expect some risk but you know even they were shocked
21:55 to see their portfolio correct by 30 to 40% towards the end of March.
21:59 Of course I mean the markets have recovered since then but still you know that was a major
22:03 shock and something not witnessed I think since the financial crisis, global financial
22:09 crisis of 2008.
22:10 So people kind of you know a lot of investors saw this for the first time.
22:15 So what would be your advice to equity investors in these volatile times?
22:18 So Vishal fantastic question once again.
22:22 You are absolutely right that this 30% kind of a drop happened after a very very long
22:28 gap.
22:29 So I actually did some number crunching and tried to see what really took place.
22:36 So since the inception of Sensex in 1979, this was the 7th time that Sensex has fallen
22:42 by 30% or more from the all time high.
22:47 So this is the 7th such instance.
22:49 But the one that happened in 2020 happened after almost 12 years.
22:55 The previous one happened in 2008.
22:57 So one there was a gap of more than a decade.
23:01 The other thing that we also saw in the numbers was that during the 2010-2019 decade, 10 year
23:09 period, roughly 2500 working days and there were only 3 days, only 3 days out of 2450
23:18 days, only on 3 occasions, the daily Sensex movement, I mean previous close to today's
23:25 close, the daily change was more than 4%, only on 3 occasions, either up or down.
23:33 But in the month of March 2020, out of 22 working days, the 4% change happened on 10
23:41 occasions.
23:42 Look at the level of volatility and if you are not used to seeing that volatility and
23:47 suddenly that volatility becomes visible, that volatility is very scary for a lot of
23:51 people.
23:52 So it is said that volatility is inherent to equity markets.
23:57 That's the basic nature of equity markets.
24:00 And that nature has a lot to do with the way the open markets work.
24:05 The markets work or the prices move based on opinions of people.
24:12 And these opinions could be either based on knowledge or based on certain needs or based
24:21 on emotions.
24:22 Now, in the entire decade of 2010 to 2019, in fact for last maybe 30-35 years, we have
24:28 seen a glut of liquidity being pumped by the central banks all across the world.
24:33 And that glut of liquidity kept the markets at a reasonably high level and we have also
24:39 witnessed over the years the interest rates also have been on a gradual decline.
24:43 Because of that also equity markets have remained high.
24:46 But the volatility which was visible, my only request to everybody is whatever happened
24:52 in that decade, that decade was abnormal that the volatility was missing.
24:58 What happened in 2020 is the very basic nature of equity markets.
25:03 Please expect volatility.
25:05 If you don't get volatility, then get scared.
25:08 If you see volatility in equity markets, feel comfortable that the market is behaving the
25:12 way it should.
25:14 That's a great advice, especially for investors who are new at this game.
25:18 And I think anyone who started investing in the last 10 years, all the millennials, I
25:24 think it is the first time they are seeing this kind of volatility.
25:26 So this advice for them is quite crucial.
25:31 But how do you see this volatility going forward the next one or two years, given the crisis
25:38 is still there and markets are already reaching.
25:41 They are near their peak already, even though we are still going through the crisis right
25:47 now and we are in the middle of it, if not towards the peak.
25:51 Then how do you see, because so much of recovery has already happened.
25:55 So how do you see this going forward?
25:57 That's the second part of the nature of equity markets.
26:00 A lot of times people feel that the equity market follows the economy.
26:05 In reality, equity market is often the forward indicator of what is going to happen.
26:10 So equity market moves before what happens in the economy.
26:14 That's number one.
26:15 So it is actually a leading indicator.
26:17 Number two, equity markets also, it is one place where it's the hope market, meaning
26:26 if people are hopeful about a better future, then the equity markets do well.
26:30 Now, when are you hopeful?
26:33 When you feel certain about what is likely to happen in the future, whenever there is
26:37 certainty, the markets normally move up, whenever there is a huge amount of uncertainty, markets
26:43 crash.
26:44 So go back to March this year, the uncertainty surrounding coronavirus pandemic and how
26:51 it will pan out, what is the mortality rate, there was a huge amount of uncertainty then.
26:58 Today, after roughly four, four and a half months, we are reasonably comfortable because
27:03 we've also seen the recovery case rising.
27:05 So though the number of cases is going up, but the number of recoveries are also on the
27:10 rise.
27:11 More or less, we have accepted that if you wear a mask, maintain social distance, don't
27:15 move out of house unnecessarily, then it's not that bad.
27:21 So some amount of certainty has come in.
27:23 Third amount of certainty looks like, okay, 2020 is washed out as far as the economy is
27:28 concerned.
27:29 But after that, the economy is likely to revive.
27:33 So whenever there is some degree of certainty, some degree of hope, then the markets start
27:38 looking up.
27:40 So it's difficult to say whether every piece of information is already priced in or there
27:48 is something else which would reveal itself going forward.
27:51 Having said all these things, I would still want to exercise caution at this juncture
27:56 simply because what can happen two years later, the chances are that equity markets may discount
28:04 it in within one year or six months.
28:08 Markets are generally prescient that way, they know what's likely to happen much in
28:15 advance.
28:16 So I would not like to hazard a guess, but if you have long term goals, stay invested
28:22 in equity markets, because this is one asset category, which has the potential to generate
28:27 superior returns after adjusting for inflation.
28:30 Because if I don't take that risk of equity market for my long term goals, currently,
28:35 even 10 year deposits are at 5-5.5%.
28:38 Will that be sufficient to meet your goals after adjusting for inflation and taxes is
28:44 a question.
28:46 But if you have a short term horizon, always remember January 2020 to March 2020 to July
28:53 2020, what happened in stock markets.
28:55 Never forget that.
28:57 If you have short term goals, stay away from equity.
29:01 That's what I would say.
29:02 Right.
29:03 So that's that's the advice for the investors.
29:04 And both of you talked about the volatility.
29:05 My next question is for Mr. Rao on this particular thing.
29:06 Of course, not exactly volatility, but you know, there are so many risks involved with
29:07 investments.
29:08 There is volatility risks linked with equity markets.
29:09 There are credit risks associated with the debt segment.
29:10 When it comes to fixed income products and small savings schemes, the interest rates
29:11 are falling.
29:12 And as Mr. Trivedi mentioned that, you know, inflation, whether they will be able to deliver
29:13 good inflation adjusted returns or not, we have to see.
29:14 So in such a scenario, I think it's important to understand that there are so many risks
29:15 involved with investing.
29:16 There are so many risks involved with investing.
29:17 There are so many risks involved with investing.
29:18 There are so many risks involved with investing.
29:19 There are so many risks involved with investing.
29:20 There are so many risks involved with investing.
29:21 There are so many risks involved with investing.
29:22 There are so many risks involved with investing.
29:23 There are so many risks involved with investing.
29:24 There are so many risks involved with investing.
29:25 There are so many risks involved with investing.
29:49 There are so many risks involved with investing.
29:56 There are so many risks involved with investing.
30:19 There are so many risks involved with investing.
30:45 There are so many risks involved with investing.
30:52 There are so many risks involved with investing.
30:57 There are so many risks involved with investing.
31:03 There are so many risks involved with investing.
31:25 There are so many risks involved with investing.
31:53 There are so many risks involved with investing.
32:03 There are so many risks involved with investing.
32:13 There are so many risks involved with investing.
32:33 There are so many risks involved with investing.
32:53 There are so many risks involved with investing.
33:13 There are so many risks involved with investing.
33:33 There are so many risks involved with investing.
33:53 There are so many risks involved with investing.
34:13 There are so many risks involved with investing.
34:33 There are so many risks involved with investing.
34:43 There are so many risks involved with investing.
34:53 There are so many risks involved with investing.
35:03 There are so many risks involved with investing.
35:13 There are so many risks involved with investing.
35:23 There are so many risks involved with investing.
35:33 There are so many risks involved with investing.
35:43 There are so many risks involved with investing.
35:53 There are so many risks involved with investing.
36:03 There are so many risks involved with investing.
36:13 There are so many risks involved with investing.
36:23 There are so many risks involved with investing.
36:33 There are so many risks involved with investing.
36:43 There are so many risks involved with investing.
36:53 There are so many risks involved with investing.
37:03 There are so many risks involved with investing.
37:13 There are so many risks involved with investing.
37:23 There are so many risks involved with investing.
37:33 There are so many risks involved with investing.
37:43 There are so many risks involved with investing.
37:53 There are so many risks involved with investing.
38:03 There are so many risks involved with investing.
38:13 There are so many risks involved with investing.
38:23 There are so many risks involved with investing.
38:33 There are so many risks involved with investing.
38:43 There are so many risks involved with investing.
38:53 There are so many risks involved with investing.
39:03 There are so many risks involved with investing.
39:13 There are so many risks involved with investing.
39:23 There are so many risks involved with investing.
39:33 There are so many risks involved with investing.
39:43 There are so many risks involved with investing.
39:53 There are so many risks involved with investing.
40:03 There are so many risks involved with investing.
40:13 There are so many risks involved with investing.
40:23 There are so many risks involved with investing.
40:33 There are so many risks involved with investing.
40:43 There are so many risks involved with investing.
40:53 There are so many risks involved with investing.
41:03 There are so many risks involved with investing.
41:13 There are so many risks involved with investing.
41:23 There are so many risks involved with investing.
41:33 There are so many risks involved with investing.
41:43 There are so many risks involved with investing.
41:53 There are so many risks involved with investing.
42:03 There are so many risks involved with investing.
42:13 There are so many risks involved with investing.
42:23 There are so many risks involved with investing.
42:33 There are so many risks involved with investing.
42:43 There are so many risks involved with investing.
42:53 There are so many risks involved with investing.
43:03 There are so many risks involved with investing.
43:13 There are so many risks involved with investing.
43:23 There are so many risks involved with investing.
43:33 There are so many risks involved with investing.
43:43 There are so many risks involved with investing.
43:53 There are so many risks involved with investing.
44:03 There are so many risks involved with investing.
44:13 There are so many risks involved with investing.
44:23 There are so many risks involved with investing.
44:33 There are so many risks involved with investing.
44:43 There are so many risks involved with investing.
44:53 There are so many risks involved with investing.
45:03 There are so many risks involved with investing.
45:13 There are so many risks involved with investing.
45:23 There are so many risks involved with investing.
45:33 There are so many risks involved with investing.
45:43 There are so many risks involved with investing.
45:53 There are so many risks involved with investing.
46:03 There are so many risks involved with investing.
46:13 There are so many risks involved with investing.
46:23 There are so many risks involved with investing.
46:33 There are so many risks involved with investing.
46:43 There are so many risks involved with investing.
46:53 There are so many risks involved with investing.
47:03 There are so many risks involved with investing.
47:13 There are so many risks involved with investing.
47:23 There are so many risks involved with investing.
47:33 There are so many risks involved with investing.
47:43 There are so many risks involved with investing.
47:53 There are so many risks involved with investing.
48:03 There are so many risks involved with investing.
48:13 There are so many risks involved with investing.
48:23 There are so many risks involved with investing.
48:33 There are so many risks involved with investing.
48:43 There are so many risks involved with investing.
48:53 There are so many risks involved with investing.
49:03 There are so many risks involved with investing.
49:13 There are so many risks involved with investing.
49:23 There are so many risks involved with investing.
49:33 There are so many risks involved with investing.
49:43 There are so many risks involved with investing.
49:53 There are so many risks involved with investing.
50:03 There are so many risks involved with investing.
50:13 There are so many risks involved with investing.
50:23 There are so many risks involved with investing.
50:33 There are so many risks involved with investing.
50:43 There are so many risks involved with investing.
50:53 There are so many risks involved with investing.
51:03 There are so many risks involved with investing.
51:13 There are so many risks involved with investing.
51:23 There are so many risks involved with investing.
51:33 There are so many risks involved with investing.
51:43 There are so many risks involved with investing.
51:53 There are so many risks involved with investing.
52:03 There are so many risks involved with investing.
52:13 There are so many risks involved with investing.