19 Jan 2023

Get FREE Tickets for ‘11 Strangest Secrets of Wealth Creation’ Mega Event!!

A massive ‘Financial Wellbeing Conclave 2023’ is being organized in Mumbai after 3 years, from 19 – 21 Jan 2023, being attended by more than 1200 financial advisors across the country offline as also online. 

As a part of this Conclave, a MEGA Investor Awareness Program is being conducted online on the topic of 11 Strangest Secrets of Wealth Creation which will be delivered for the first time by 11 CEOs themselves of top Asset Management Companies of the country. Each Secret will be a very short-sweet-and-to-the-point 15 minutes’ delivery, making it a very intense bout of learning for you.

This online event is on January 21, 2023 (Saturday) from 10.15 AM to 1.30 PM and is expected to be attended by about 10,000 investors from across India.

Our CEO, Col Sanjeev Govila (retd), is the ‘Chair’ for this India Personal Finance Professional (IPFP) Summit and has been instrumental in helping curate this particular event. He will be there in Mumbai to kick-start it on the 21st Jan morning.

Hum Fauji Initiatives has been given a limited number of free tickets on a first-come-first-served basis which we expect to be lapped up very fast.

Register here for Free to get a free ticket for you and your family
or visit our CEO’s professional profile page directly for the event to book it:-  https://members.networkfp.com/member/sanjeev-govila

Please let us know when you have registered for the event so that we can ensure that at least our investors get their tickets in case the tickets get overbooked.

Similarly, In case you book a ticket, please ensure that you attend it or let us know in advance that you will not be attending it so that the ticket can be passed on to somebody else who could not get it.

19 Jan 2023

How Many Financial Advisors Should You Have?

Multiple financial advisors may help you get diversified views, but unless they talk to one another, you may end up having duplicate investment products across multiple portfolios, doing similar things. Sometimes, specialists help.

Before the onset of Covid, most new customers walking through our doors would either not have been using any financial planning firm or may have been using one, at the most.

That has changed now. In many cases, we see people using more than one financial advisor. Why do people use multiple advisors?

The general reason is that “we don’t want to put all of our eggs in one basket.” That’s a reasoning more applicable in the context of asset allocation rather than advisor selection.

Having multiple financial advisors has both pros and cons.

Why multiple financial advisors work? 

Here’s why multiple heads work better than one. You can get different viewpoints and perspectives on how to achieve your financial goals. Individual advisors can focus on different aspects of your financial plan, allowing you the benefit of specialized advice.

For instance, you could have one who excels in debt and fixed income, including tax-free bonds. Another advisor could be an expert in tracking international markets – a growing need among many investors in the past few years.

Different advisors may be able to offer access to a broader range of financial products to choose from.

When multiple financial advisors do not work

There could be some downsides too to advice coming to you from multiple directions.

None of the advisors would have visibility of your entire financial situation. If your advisors don’t see the whole picture, they may make recommendations that aren’t suitable to helping you achieve your goals. Without a central plan and monitoring, the overall picture could turn out to be haphazard.

It is ideal if all your advisors communicate with one another. At least in some measured way. Practically, this hardly happens as no advisor would want to share clients.

So it may be challenging for you to have a clear picture of your overall asset mix, fees and performance, especially if advisors aren’t communicating with each other. Investors may find themselves owning duplicate products or holdings that can skew the allocation of their portfolios.

This could lead to conflicts if your advisors have different takes on how to help you best reach your goals. You may become unsure of which advisor’s advice to follow. Applying multiple advisors’ strategies could prove to be counterproductive or even harmful.

You could also have problems on your tax management since none of the advisors would know what are your overall tax occurrences and what has already been catered for.

Possibility of the advisors to compete for all the assets and take undue risks on their part to outperform your other competing advisors is also very real, harming you in the long, or even short, run. In such cases, additional emphasis is then placed on short-term performance, undermining your long-term financial plan.

Have one advisor, but take on specialists

Your planning, execution, reviews and management is done at a single place. So, no conflicts of advice, differing perspectives causing dilemma to you, better tax management and a holistic view of your complete financial situation.

A single, good advisor will likely be able to maintain a better grasp of your entire financial picture, needs and goals in the short, medium as also the long term.

If you have large assets or a complicated financial or succession plan, one advisor may sometimes not be able to give the whole range of solutions, services and products that your situation demands.

Besides, some of the advisors have specialised practices, like insurance or real estate and may not offer a complete solution range. In such circumstances, you may have no alternative but to go to multiple advisors.

End note

It is better to have a single financial advisor or advisory firm provided the advisor you have chosen is ethical, has a good reputation, is responsive and is professionally competent.

A lot of research and due diligence should go into selecting the right financial advisor. Those pitching their services to you based on good returns they have got in the short term in some investors’ portfolios may not be the right way to choose an advisor – remember an advisor is much more than being a mere returns-getter in the long run.

A single, good advisor will be able to maintain a better grasp of your entire financial picture, needs and goals. Managing everything related to your finances, family and estate is challenging to do in a coordinated manner.

Adding another advisor can complicate things and often results in things falling through the cracks or duplication of roles or investments. Lastly, an investor generally will get much more out of the advisor when he or she also shows commitment to that advisor.

The original article can also be read at the following link on MoneyControl dated 11 Jan 2023

02 Jan 2023

Let’s Start the New Year 2023 by Doing Something Good for Our Soul

‘Doing Good to Our Soul’ is something we at Hum Fauji Initiatives (HFI) have been trying to do for a few years now through our NGO, HFI Welfare Foundation, a Govt recognised and registered charity organisation. We have helped many families and individuals before, during and after the Covid pandemic from whatever resources we could muster up.

We have been collecting and hoarding money – from our internal company resources, our personal resources, donations received from some gentle souls, and many more – for the new initiative that we’re launching today.  Fortunately, we have now been able to build up some corpus when we can now do something worthwhile.

“We know only too well that what we are doing is nothing more than a drop in the ocean. But if the drop were not there, the ocean would be missing something.” – Mother Teresa

And what have we done all this for?

There are a large number of families of our demised Jawans, Sailors and Airmen (Other Ranks – OR) all across the country who have fallen on hard financial times due to various reasons – the dues received by the family on the death of the OR taken away from them on some pretext or the other by family members and/or others, even pension not being received by them fully or partially due to some legal loopholes or machinations by somebody, etc. Each one of us knows such cases where small children of many such families are not able to even get basic education due to financial constraints.

That is where we want to help and get those children to school.
And we want your help in identifying such families in dire need of financial support for school education of their children. Would you be up to it?

“Service to others is the rent you pay for your room here on earth.” –  Mohammed Ali

The help required from you:-

  • Through your own knowledge and contacts, identify the family of a demised OR which is absolutely on the brink of financial penury and it is not able to send their child to school even for basic education. The family could be from your own unit or regiment, battalion, formation or anybody else– the connection is immaterial. We would rather prefer families of OR who have died due to physical casualties in peace areas than casualties in active areas.
  • The child so identified would be referred to as YOUR SPONSORED CHILD and we would be very happy if you, your spouse, and maybe your children too, would care for the child as somebody who you’ve truly adopted.
  • Fill up the form that is available at this link: https://docs.google.com/forms/d/e/1FAIpQLSdKejrw-HnJjWoJG4g-Ua0IoomQnvq42BZ31RxF_CAiTGaoog/viewform
  • Be prepared to act as the mentor to that family and child including travel to their location yourself maybe once in Six months or a year, being in touch with the family constantly, guiding them, and ensuring that the child is genuinely being educated well and is going to school.

The support from our side would be:-

  • Financial support in terms of school fees, class books and one set of school uniform. Other school accessories would be provisioned for on as required / due basis.
  • Reimbursing your expenses incurred in travelling to the family. Of course, if you wish to bear any or whole part of this expense yourself any time, it will help us support more children with our limited resources.

Our aim would be to sponsor the adopted children through the entire school education once she/he is taken under your sponsorship or till the financial situation of the family stabilises, whichever is earlier.

Initially, we would start with 20 children, aiming for a fair distribution in areas across the country. As we build up some experience and financial resources in this initiative, we would try to get more and more affected fauji children under its wings.

We’re aiming to sponsor the selected children from the start of the coming Academic Year in 2023.

Even those who do not sponsor a child can help us in this initiative:

Though we have been able to build up a corpus to start the above, we well know that it is not enough. We therefore need as much financial help as possible from our fauji community for this. We request you to help us undertake this onerous task that we have set out to do. Donations can be made to us using the link: https://www.instamojo.com/@hfiwelfare/

HFI Welfare Foundation is a Govt registered Section 8 company (registration number 345021), which can undertake charity activities and also take donations for such activities from the public. Donations made to HFI Welfare Foundation are eligible for tax benefits under Section 80G of the Income Tax Act 1961.

“We make a living by what we get. We make a life by what we give.” – Winston Churchill

Let’s change a small part of the world together…

“The simplest acts of kindness are by far more powerful than a thousand heads bowing in prayer.” – Mahatma Gandhi