Money Konnect

Practicing yoga daily can help you stay in shape and maintain a healthy body and mind. However, the really interesting thing about yoga is that it can also help you create a healthy and balanced investment portfolio. In our third episode of ‘Yoga for your mind, body, and portfolio’ podcast, we discuss how the bandha sarvangasan and the trikonasan can help you create a flexible portfolio even while you stay focused on your financial goals.  

Key takeaways

·    The bandha sarvangasan or the bridge pose makes your body flexible, something which is important for your investment portfolio as well. As the investment climate and your personal circumstances change, it is important for you to be able to change your portfolio as well.

·    The trikonasan focuses on three elements that help you achieve the desired balance. The trikon for your portfolio is your return requirement, your risk appetite, and your investment time period. It is only when all these three factors are aligned that you can actually create wealth in the long run. 

·    Practicing yoga daily in a disciplined manner can have significant long-term benefits. Similarly, investing regularly in a disciplined manner, maybe through a Systematic Investment Plan (SIP) can potentially help you create long-term wealth.

You can listen to the podcast on the Edelweiss Mutual Fund website, Spotify, Google Podcasts, and Apple Podcast. We hope you enjoyed this podcast and will tune in to listen to more such podcasts on investing nuggets. 

Yoga is all about having a healthy and balanced life. It helps you stay in shape and keep your mind and body strong. The good thing is that the principles of yoga can also help you create a healthy and balanced investment portfolio. In our second episode of ‘Yoga for your mind, body, and portfolio’ podcast, we discuss how the Shishuasan, Shavasan, and doing yoga at your own pace can help you create a robust portfolio. 

Key takeaways:

·  The Shishuasan is important because it helps you keep your body strong and build your immunity. You can make your portfolio immune to market ups and downs by diversifying it and staying invested for the long-term.

· Yoga benefits you only if you do it as per your own rhythm and fitness goals. Similarly, your investment portfolio will help you achieve your financial goals only if it is well-aligned with your return requirements, risk profile, and investment time period.

·  Whether it is in yoga or in investing, sometimes, the best approach is to do nothing. Just like the Shavasan requires you to take a pause, it is important to avoid reacting to every market event and just do nothing.

You can listen to this Money Konnect podcast on the Edelweiss Mutual Fund website, Spotify, Google Podcasts, and Apple Podcast. We hope you enjoyed this podcast and will tune in to listen to more such podcasts on investing nuggets. 

The way you think and then respond to a given situation or event can sometimes make the biggest difference to your journey. It can be the reason for your success or can cause failure. Thus, more than anything else, it is important to understand why you respond the way you do and how you can control your responses. 

Summary:

In his path breaking book, ‘Thinking, Fast and Slow’, Nobel Prize winner Daniel Kahneman helps you comprehend critical thinking processes like judgmental errors, decision making, perception, analytical thinking, and irrationality. Listen to this Podcast by Edelweiss MF to learn how you can let your thoughts impact your actions.  

·   There are two players in our minds. One is named System 1 and the other is named System 2.

·   System 1 is intuitive and has almost automatic reactions.

·   System 2 concentrates on activities that demand attention, including analysis and calculations.

·  To make rational decisions, both System 1 and 2 are required. System 1 is where a lot of action takes place while System 2 is where all the rational thinking takes place.

·   You must leverage both systems so that you can address doubt and let rational thinking take over.

·   You should focus on sharpening System 2 as it supports System 1.

·   By using both systems while investing you can ensure that your decisions are rational and not impulsive and emotional.

·   By leveraging both the systems, you can also use human psychology to make the best decisions and build robust business models.

Daniel Kahneman’s book sheds light on one of the most important aspects of decision making. You can listen to the podcast on the Edelweiss Mutual Fund website, Spotify, Google Podcasts, and Apple Podcast. We hope you enjoyed this podcast and will tune in to listen to more such podcasts on investing nuggets. 

In life, we have many experiences and interact with lots of people. These experiences and interactions can often impact our behaviour and influence our ability to make the right decisions. This is true for life as well as for investing. However, by being aware of these behavioural biases and simply following a few key steps, you can reduce the impact of these biases on your investment journey. In this Edelweiss Money Konnect podcast episode, Radhika Gupta, MD & CEO of Edelweiss AMC, identifies some of the major behavioural biases and offers suggestions on how to deal with them. 

Key takeaways

1.  Anchoring: During the course of our life, we learn and unlearn many things. However, many people tend to stay anchored to some of the things that they have learnt or experienced and base all their future expectations on these few learnings or experiences. For example, framing expectations of future returns by looking at past returns.

2.  Loss aversion: Most people feel regret after a bad outcome. Moreover, the feeling of regret is often greater than the feeling of joy you get after a favourable outcome. For example, the loss of Rs 2 can feel bigger than a gain of Rs. 20. The fear of loss not only keeps us away from making good investments it also stops us from exiting sub-par investments.

3.  Choice paralysis: Today, we are spoilt for choice, whether it is about clothes, shoes, or investments. At the same time, we also live in an era of information overload. Just like they say too much of a good thing can be a bad thing, the same way too much choice and information can make investment decisions unnecessarily difficult

4.  Recency bias: We all remember the recent past and tend to forget the entire past. However, by selectively remembering only a part of the story, especially the part which you have only recently read or experienced, will impact your ability to make the right investment decisions.

5.  Herd mentality: We all love following what other people are doing. As a matter of fact, this is exactly how trends or fads happen. However, we must always remember that the power of the crowd has created many bubbles in the past.

 You can learn more of these interesting principles on the Money Konnect Podcasts available on the Edelweiss Mutual Fund website, Spotify, Google Podcasts, and Apple Podcast. We hope you enjoyed this podcast and will tune in to listen to more such podcasts on investing nuggets.

It is well known that practicing yoga can help you keep your mind and body healthy and lead a balanced and happy life. But, the great thing is that yoga is not just about the mind and body. The principles of yoga can also help you create a healthy and balanced investment portfolio. In our maiden ‘Yoga for your mind, body, and portfolio’ Money Konnect Podcast by Edelweiss Mutual Fund, we discuss how the Surya Namaskar is central to both the practice of yoga and investing. 

Key takeaways:

·  The Surya Namaskar is a combination of twelve asans with each asan benefiting us in a special way. Similarly, our portfolio should comprise multiple asset classes so that it can benefit from the unique properties of each asset class.

·   The Surya Namaskar also teaches us about the importance of discipline. It is only by practicing Surya Namaskar daily can we hope to achieve the true benefits of yoga. Similarly, only by investing regularly and following a financial plan in a disciplined manner we can hope to achieve our financial goals.

·   The holistic approach of the Surya Namaskar gives us the ability to control our emotions and stay calm. This way, we can make better investment decisions when market prices start moving a lot and our emotions start influencing us. 

You can listen to this Money Konnect Podcast on the Edelweiss Mutual Fund website, spotify, Google Podcasts, and Apple Podcast. We hope you enjoyed this podcast and will tune in to listen to more such podcasts on investing nuggets. 

Even though you have always been taught to avoid mistakes, the fact of the matter is that mistakes are good. This is because mistakes teach you where you went wrong and give you an opportunity to improve. If you want to succeed, you must take little bets, fail quickly, and learn fast. 

Summary

In his path breaking book, “Little Bets: How breakthrough ideas emerge from small discoveries”, Peter Sims argues that truly innovative companies take little bets that help them to learn and grow. Listen to this Podcast by Edelweiss MF to learn how little bets can help you pave the road to success. 

1. Success is not about having one great idea. It is about starting with one idea, discovering that it is flawed, and then quickly reshaping the idea with the new learnings.

2. There are two main imperatives to achieving success. The first is to be willing to make mistakes and the second is to have an open mind and learn from these mistakes.

3. When you become comfortable with failure and are able to view false starts and mistakes as opportunities, then you open yourself up creatively.

4. Experiments are good. They give you an opportunity to test an idea, iterate, and improve. 

5. When you start something new, don’t just focus on the expected gains. Instead, focus on how much you can afford to lose. 

6.  Always remember that while geniuses are exceptionally rare, anyone can use little bets to unlock creative ideas.

Peter Sims’ book makes it easy to understand the importance of taking little bets that can shape your journey and put you on the path to success. You can listen to the podcast on the Edelweiss Mutual Fund website, Spotify, Google Podcasts, and Apple Podcast. We hope you enjoyed this podcast and will tune in to listen to more such podcasts on investing nuggets. 

So much has been written about Warren Buffet and his investing philosophy. Yet, we are always craving to learn more about the man himself and about his winning ways that have made him the ‘Oracle of Omaha’. Such is the magic of his investing success. 

In their book ‘Buffettology: The previously unexplained techniques that have made Warren Buffett the world’s most famous investor’, Mary Buffet and David Clark aptly capture the teachings of Warren Buffet and explain the magic of this investing genius. 

· Price is the most important factor. What you pay for an investment will determine your rate of return. Thus, you should always aim to pay a low price for a good investment.

· You should only invest in companies that have an expected annual compounding rate of return of 15% or higher.

· While short-term gains of 35% may sound great, it is better to consistently generate 20% plus returns.

·  The best way to create wealth is to buy good businesses and hold them for the long-term so that the power of compounding can multiply your wealth.

·  Buy companies with predictable and above-average earnings and profitability. 

·  Companies that have a sustainable competitive advantage tend to witness consistent long-term growth.

This book is a treasure trove of investment nuggets that have defined Warren Buffet’s investment philosophy. You can listen to the podcast on the Edelweiss Mutual Fund website, Spotify, Google Podcasts, and Apple Podcast. We hope you enjoyed this podcast and will tune in to listen to more such podcasts on investing nuggets. 

In the last two and half decades the mutual fund industry has evolved considerably to offer investors a host of products that can optimally meet their investment requirements. However, investors can benefit from the industry’s offerings only if they have sufficient information on the products and are able to understand the unique characteristics of each product. In this Edelweiss Money Konnect podcast episode, Radhika Gupta, MD & CEO of Edelweiss AMC has an in-depth conversation with Dhirendra Kumar, CEO of Value Research on different mutual funds products and how investors can cut through the jargon to make better investment decisions. 

Key takeaways:

·  When analysing an equity fund you must look for performance, process, and fund manager longevity. From a performance perspective, instead of simply focusing on returns generated, you must see how the fund has performed in a full market cycle.

·  If there is a robust process in place then there is a possibility that past performance can be replicated. This means that you should understand the stated objective of the fund and determine whether the fund manager is following a robust and sustainable policy.

·  The only way you can impress a customer is if you guide him and hold his hand through the ups and downs of the market and help him keep his emotions in check. Earning his trust is the most important thing. Interestingly, this cannot be done through jargonised content. 

·   The needs of every type of investor can be met by four to five funds. For example, all your requirements from long-term investments can easily be met by balanced funds, balanced advantage funds, and tax saving funds. If you are a first-time investor then you can invest in Balanced advantage funds – it is a steadier take on growth

·  Considering that asset allocation is very personal by nature, there are no thumb rules or formula for the ideal asset allocation. An important thing to consider is that as your investment corpus grows and becomes meaningful, the need to safeguard it through optimal asset allocation becomes essential

·  While investing, our primary aim is to invest in good companies. Thus, geography should not become a limiting factor. Investors should actively consider international funds to diversify their portfolios and gain exposure to good companies

You can learn about more such interesting investment principles on the Money Konnect Podcasts available on the Edelweiss Mutual Fund website, Spotify, Google Podcasts, and Apple Podcast. We hope you enjoyed this podcast and will tune in to listen to more such podcasts on money management.

Money management forms an integral part of our lives. While you hear about money all the time, you might not always find enough material to read and understand it. Considering the low level of financial literacy in India, there is an imminent need for simple and relatable content on money management. In this Edelweiss Money Konnect podcast episode, Radhika Gupta, MD & CEO of Edelweiss AMC has an insightful conversation with Monika Halan, Consulting Editor with Mint and author of the best-selling book ‘Let’s Talk Money’. Listen and learn the five golden rules of money management.

Key takeaways:

Separate your savings from your spending: You need to have your own cash flow system where your earnings, spending, and investments can be easily separated. By separating your cash flows, you will have a better view of your money which will help you manage it well. 

You need an emergency fund: Inarguably, saving for the long-term is good. However, you must always keep aside some money, maybe in a fixed deposit or a suitable debt mutual fund, that will come to your rescue in the time of emergency. 

You need sensible insurances: Protection is as important as growth. Everyone needs to protect their life and their assets. Fortunately, there are a whole range of insurance products that can help you protect the assets that are most important to you. 

You need to understand that real estate is not always a winner: Historically, real-estate has generated sizable returns for its investors. However, it is important to assess the costs before you invest in real estate. It might not be for everyone.

You are not giving your money a chance to grow if you are not doing an equity allocation: Equities are a great vehicle for long-term growth. Undoubtedly, investing in direct equities has a very high degree of risk. Which is why you should opt for the mutual fund route to get the desired exposure to equity investments.

You can watch a video of this podcast on our YouTube channel and learn about more such interesting investment principles on the Money Konnect Podcasts available on the Edelweiss Mutual Fund website, Spotify, Google Podcasts, and Apple Podcast. We hope you enjoyed this podcast and will tune in to listen to more such podcasts on money management.

Your mind is your control center and can influence all your choices and actions. It is commonly believed that those who can control their mind and change their mindset have achieved the ultimate success.  While this is not easy to achieve, knowing how the mind works can take us one step closer to this goal. 

Summary:

In her book ‘Mindset: The New Psychology of Success’, Carol S Dweck recognizes the role of mindset in shaping your personality and helping you grow in life. Listen to this Podcast by Edelweiss Mutual Fund  & learn about the importance of mindset in your life!

1.       There are primarily two kinds of mindsets – growth and fixed. A growth mindset can help you grow and achieve success while a fixed mindset can act as a hurdle to growth and keep you away from winning.

2.       The growth mindset is very powerful – it can change the course of your life and bring you closer to your goals.

3.       The fixed mindset makes people weak and holds them back from learning and making the right choices.

4.       It has been observed that champions usually sport a growth mindset as it builds character and encourages perseverance which is imperative for becoming a champion.

5.       Growth minded leaders see their companies not as their fiefdom, but as growth engines for their teams, their company, and themselves.

6.       Mindset can be changed – the first step towards bringing about this change is to lower the barriers in your mind and open up to the belief that you can actually improve.

Carol S Dweck’s book has made it easy to understand the impact of different mindsets and the importance of having the right mindset. We hope you enjoyed this podcast and will tune in to listen to more such podcasts on investing nuggets.