Today when interest rates are close to inflation or even less, it make less attractive to invest in such fixed interest schemes with long lock-in period. Investor needs an investment avenue which will help them to beat inflation, give flexibility and create wealth in long run with attractive returns.

Mutual Funds is only investment avenue which will help the investor to beat inflation, give flexibility with minimum lock-in period, tax deduction (minimum in all investment avenues available eligible for tax deduction) and  higher returns compared to any other fixed income generating investments in long run enabling the investor to create wealth.

Equity Linked Saving Schemes (ELSS) Mutual Funds help investor to invest in equity, beat inflation, get income deduction (lower tax payable) and with minimum lock-in period. Mix of PPF and ELSS will be good combination for investor to create wealth in long run.

Please feel free to post your queries or email us at ark.advisor@gmail.com. We will be happy to assist you in your journey of Wealth Creation

However, if you are making your investments now, don’t just choose whatever is being offered by a salesperson. For a variety of reasons, savers tend to make hasty and poor decisions while choosing their tax-saving investments. For one, many of those who wait till the end of the year are those who don’t make any discretionary investments other than the tax savings. They’re inexperienced in this whole activity and make a foray into investing only once a year, generally to fall prey to the first salesman who comes along. As long as an investment saves tax, they feel that the immediate job is done.

However, this approach is a waste of money. A good tax-saving investment must be an investment first and a tax-saver later. For most people, the investment that should make the most sense is in an equity ELSS fund. Moreover, at three years, the ELSS lock-in is shorter than all fixed income options but still long enough to be the right time frame for equity investments and damping out most of the risk. On top of that, ELSS returns are tax-free like all long-term equity returns.

Equity is the only investment class which helps investor to fight the inflation unlike any other debt investment giving fixed (negative return post factoring inflation). For any kind of long-term investments, fixed return investments no longer make sense when the returns are less or equal to inflation at present.

Equity Markets have corrected from the all time highs giving an investor an opportunity to invest now and earn good returns in long run (better than fixed return instruments). Investor needs to have good mix / balance of equity and debt instruments even while planning for tax saving.

You can post your queries or email us on ark.advisor@gmail.com

Happy Investing

The science of dentistry and the science of investing follow similar processes.  Just like chemistry has fundamental laws that help us understand the structure, properties, and reactions of matter, the science of investing has fundamental laws that help us understand the behavior of different types of assets (businesses, property, and financial assets like stocks and bonds).

I realize there are dozens of opinions out there—family, friends, financial advisors, and the media.  But opinions aren’t scientific facts, and there is an academically supported science that exists for investing.  Nobel laureates, university professors, and financial professionals formulate much of what we know about this science.  The science of investing is not subjective, and it’s not a series of mantras you’ve heard from parents or friends.

Most dentists have an investment portfolio that looks more like a roulette table than a periodic table of elements; their portfolios feel much more like gambling than investing. If you don’t know anything about the science of investing, it’s likely you will feel confused, uneasy, or frustrated about your investments, especially during down markets.  Here are a few tips to help you learn the science of investing:

1.  DON’T HOLD TOO MUCH CASH IN YOUR ACCOUNTS.  IF YOUR MONEY ISN’T GROWING, YOU’RE LOSING AT LEAST 6% OR MORE PER YEAR TO INFLATION.

– Cash is King but holding too much cash is not sensible, Inflation reduces purchasing power of your money

– If you are generating  less than inflation on your long term investments than you are earning negative returns

– Do not mix Insurance & Investments, let insurance be only for financial protection

– Look avenues for generating higher than bank saving accounts rate returns on short term cash like short term bonds with easy liquidity and less penalty.

2.  DON’T PICK STOCKS OR MUTUAL FUNDS THAT DO THE SAME THING.  THE ODDS ARE NOT IN YOUR FAVOR.

– Investing in direct equities and mutual funds doesn’t make sense as both invest in equities, choose your bet

– Diversification should be major criteria while investments. “Do not put all your eggs in one basket”

– No one can predict stock market no matter how knowledgeable he/she is, it has been proved over time again and again that the more you remain invested in markets

– Averaging and Power of Compounding both will help you to generate good returns in long run

– Goal based investing will help investor to invest for long term.

3.  DON’T TRY TO MOVE IN AND OUT OF THE OVERALL MARKET OR INDUSTRY SECTORS

– Market performance is cyclic, do not try to predict the direction of market or bet on one particular industry/sector

– Remain invested for longer time with good sectoral diversification

– Invest in different asset classes like Equities, Bonds, Gold, etc.

Note: Before starting your investments, ensure you and your family is sufficiently insured (Life & Health Insurance).

When in doubt, do not hesitate to take help. “Penny saved is penny earned”.

Technology has enabled us to invest in International Equities from any part of the world across equities of any country if not directly but via Mutual Fund (Fund of Funds).

We daily use products of companies like Microsoft, Apple, Facebook, Amazon, Netflix, WhatsApp, Alphabet (Google), Adobe, Tesla and many more similar brands.

How about if you get chance to invest in them?

Will you like to invest in such branded companies and further if I say the minimum investment per month is INR 1000 or more (no upper cap). Will you be interested? If your answer is Yes, please register on bit.ly/arkfinprd

We will be happy to assist you in investing in such brands.

Owning international stocks—the shares of companies located outside your home country—can help diversify your portfolios, hedge against risk and tap into growth in economies beyond your own

What is the difference between International Equity and Global Equity?

By definition, international funds invest in non-U.S. markets, while global funds may invest in U.S. stocks alongside non-U.S. stocks.

Is it easy to Invest in International Markets / Can you easily Invest in International Markets?

Answer to the above is “YES”. You can invest as minimum as Rs.500 per month and start investing in International Equity. Technology is changing fast and we as investors need to invest in markets and countries which are ahead of us with longer time horizon so you can be part of companies similar to Apple, Microsoft, Alphabet, etc. at a very initial stage and grow as the company grows..

How long you should remain invested in International Markets?

The longer  time you spent in any markets and remain invested, helps the investor to fetch better returns.Many mutual funds have started schemes with partial or full exposure to International equity.

Every investor should have 10% of his over all portfolio in International Markets to provide diversification.

Please feel to raise your concerns / queries.

Note: The above article is not suggestion to invest in International markets and/or any scheme. Every investor should do his/her risk analysis and should consult his/her financial advisor before investing

You can review your existing Mutual Fund portfolio for free on https://arkfs.partners.rankmf.com/

Opt 1 – Invest for 10 years and get Rs.1500 per month from 11th year onward

Opt 2 – Invest for 15 years and get Rs.2000 per month from 16th year onward

Opt 3 – Invest for 20 years and get Rs.3000 per month from 21st year onward

Opt 4 – Invest for 25 years and get Rs.5000 per month from 26th year onward

Many investors ask why I should invest in equities, they feel equities are risky. Well equities are not risky but equities are volatile and fixed income instruments are risky because inflation reduces the purchasing power of money. Inflation is a critical factor in investment planning. As mentioned earlier, one should understand the real return (Return – Inflation) of an investment to ensure that your invested money earns a return which is sufficient to take care of the rising prices. Therefore if your investment returns are higher than inflation over a sufficiently long investment horizon you create wealth to fulfill different financial goals. If your investment returns cannot keep pace with inflation on a post tax basis, you may not be able to meet your long term financial goals.

Next things is I don’t have time and knowledge to do sufficient research, well then the investors should choose open ended equity schemes of Mutual Funds. Systematic Investment Plans (SIP) in equity mutual fund schemes are well suited for long term investments because you can invest from your regular savings and invest over a long investment horizon. Over long investment horizons SIPs can reap the power of compounding in creating wealth for you. SIPs are especially suited for investment in inflationary environment because they can take advantage of market volatility. If the equity market is volatile in the short term for some reason e.g. US Fed increasing interest rates, crude prices going up etc, you can take advantage of market volatility through Rupee Cost Averaging because you invest at different price points in SIPs.

This Pandemic has shown us the importance of having / building emergency fund which would have been very useful in situation of uncertain inflows from salary, business and/or profession along with appropriate amount of Health Insurance Cover.

There is no right or wrong formula for calculating the sufficient insurance cover of one person and/or his family because what may seem right for one family may not be sufficient for other.

Analyzing every individual’s situation independent and calculating the Insurance & Emergency Fund needs seems to be right solution in today’s testing time. Insurance plays a major role or way of immediate finance in time of need with minimal investment along with Emergency Fund.

Safety and not returns is the key to build sufficient emergency fund and keep aside some amount handy either in (Nationalized) Bank FD and / or Mutual Fund (Debt) Scheme for easy liquidity in time of need.

Remember, because of the sensitive nature of calculations in this video, it is available for viewing maximum till Sunday, 11th July Night on my YouTube Channel
Costing in Dentistry is what is Unknown to majority of us.
How much does a procedure cost?
What is the Direct Cost involved aka the Gross Profit Margin (GPM) and what is the Take Home out of that aka the Net Profit Margin (NPM) out of that?
See the GPM and NPM for a PFM Crown, RCT, CPD, CD, Class 1, 3, 4 Composite restorations etc. (Gross/Net Profit Margin formulas).
How to make your own template?
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