There is Nothing like Accidental success in Business!Dec 04, 2018
We take our vehicles for service and repair regularly. We go for health check ups regularly. We often review our progress in school. We re-assess and enhance our marriage periodically. This is the only way to ensure all things are running smoothly.
We can’t leave things to chance! There’s no way we can succeed without reviewing all these areas frequently. And that’s why you also need to review your fund portfolio yearly in your business or entrepreneurship!
There’s no accidental success in your business or entrepreneurship. It’s a brilliant idea to re-evaluate or review your business at the beginning of your business year.
When Equity Goes Up
- When this unavoidable animal called equity market goes up, you’ve to start the process of taking stock of your fund portfolio. Some signs to check for in this situation is when allocation is leaning in the direction of equities. When this happens, there’s something more you’ve got to do.
- When markets go up that much, it’s the best time to cut back on your equity exposure if—as per your asset allocation—your share in equity assets has gone up disproportionately.
- Be on the lookout if several things are on the rise in Indian markets and in countries like US and other countries in Europe and Asia or if bond yields are not behaving the same way. Why? Because it’s an indication interest rates will go up in those states.
- The wisest thing to do when this happens is to avoid high equity exposure since these equities become riskier and volatility can go up.
- Valia recommends reducing exposure to mid- and small-cap funds. As far as debt funds are concerned, investors can also look at corporate bond funds on account of rising yields in the Indian debt markets.
Make Plans for Unexpected New Goals!
- What about some new loans you may have taken on? You need to allocate budget for them.
- Then again, there could be some unexpected setbacks. You may get a loan from a bank and agree on terms of payment. But you might be surprised later on to learn that things have changed. The bank may start saying something different contrary to what you had agreed on. This setback would require that you set new financial goals for yourself. You might start getting money personally that was meant for other future personal or family programs or projects like retirement package or for the wedding for your child.
Nominations and Wills
- When we’re enjoying good health and having a good time in life, we tend to think that nothing will happen to us one day in our life or our business or company. We tend to ignore even the most important things in life like making nominations or wills. But remember: We’ll die one day or we might get incapacitated. All these circumstances require succession by an heir over our money or business.
- One of the best ways to handle such unavoidable situations is by having a will.
- Yet the complaint of many financial experts everywhere is that we ignore these nominations and wills.
- Why is a will recommended? Because a will has more power or authority than nominations and even the so-called joint holdings. Let me explain what I mean. Somebody who is a joint holder of your company or money will have no say if your will clearly states the name of the person to take over fund investments after you have gone. Even in your mutual fund holdings where there is a nominee or co-holder, a nominee will not inherit your money. That person is simply a trustee. Is that clear?
- What mistake does a nominee make sometimes? He or she makes the mistake of thinking that they are the ones who have inherited the money by virtue of being family. This is completely wrong! Why? Because the law says something totally different. It says that he or she will have the sole job of making sure that the money goes to the right people who are supposed to receive the money.
Clearly, there’s no accidental success in your life or business or entrepreneurship. We’ve got to do something about it! That’s why it’s a brilliant idea to re-evaluate or review your business at the beginning of your business year. Yes, it’s important to check and review your fund portfolio yearly!