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Guest Lecture by Mr. R. Balasubramanya | SIBM Hyderabad
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Guest Lecture by Mr. R. Balasubramanya

Guest Lecture by Mr. R. Balasubramanya

Topic: "Personal Finance and Investments – A Life Cycle Approach"

Date: 21st August 2020

Prominent Points Discussed in the Lecture are as follows

  • To have a proper planning regarding income, expenses and savings which will help in building the corpus for the future.
  • Invest your money in asset classes which have a lock in period like PPF, EPF etc.,which will help in growing the money without hindrance. Additionally, they also provide for tax benefit.
  • An emergency fund should be created equivalent to six month’s income.
  • Insurance policy is very important and should be taken for the age between 30-60 years. Only term plan and medical health insurance should be taken Endowment fund and ULIP pans should not be taken as they mix investment with insurance and give very less IRR.
  • Basically there are four types of asset classes i.e., Debt, Gold, Real-estate and Equity. Proper diversification of assets should be there.
  • Equity Linked Saving Scheme is a good way to invest in equity mutual funds as it helps in saving tax under section 80C.
  • For considering a mutual fund three factors should be especially considered i.e. Fund return, standard deviation and sharp ratio.
  • For investment in real estate a plot of land is better as compared to a constructed property or apartment as scope of growth is limited in a constructed property.
  • A person should try to develop a passive source of income.
  • Some thump rules like “100-Age” should be invested in equity, rule of 72 etc. were discussed.
  • A rough idea of the amount of corpus a person should have at the time of retirement is 400X where X is the monthly income of a person.

Diversification of asset class varies from a person to person but ideally a person should not have more than 15% of his income in Gold because metals are dead assets they don’t give recurring income. For equity it is around 20-25% and can increase for an aggressive investor.

Guest Lecture by Mr. R. Balasubramanya
Guest Lecture by Mr. R. Balasubramanya
Guest Lecture by Mr. R. Balasubramanya