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By:

Kaustubh Kale

10 September 2024 at 11:37:15 pm

Nine Financial Tips for a Prosperous Navratri

As Navratri draws to a close, I wish you and your family happiness, prosperity, and continued success. Festivals are a time of celebration, but they also serve as a valuable reminder to reflect on our financial habits and strengthen our financial discipline. In the spirit of the nine days of Navratri, here are nine essential financial tips to help you stay on track with your financial goals and make your journey towards financial freedom smoother and more secure. Build an Emergency Fund Make...

Nine Financial Tips for a Prosperous Navratri

As Navratri draws to a close, I wish you and your family happiness, prosperity, and continued success. Festivals are a time of celebration, but they also serve as a valuable reminder to reflect on our financial habits and strengthen our financial discipline. In the spirit of the nine days of Navratri, here are nine essential financial tips to help you stay on track with your financial goals and make your journey towards financial freedom smoother and more secure. Build an Emergency Fund Make sure you have at least six months of living expenses saved in a bank fixed deposit or a debt mutual fund. This reserve will serve as your emergency fund for unforeseen situations and ensures you are prepared for any rainy days. Review Your Asset Allocation Revisit your investments to ensure they align with your goals. For short-term goals within three years, bank fixed deposits, recurring deposits, or debt mutual funds are appropriate. For long-term goals beyond three years, a diversified combination of hybrid/equity mutual funds, direct equities, and gold should be preferred. Do Sufficient SIPs Systematic Investment Plans (SIPs) are the backbone of disciplined investing. At least 25-30 percent of your in-hand monthly income should ideally be invested through SIPs in mutual funds, equities, and gold. This consistent approach will steadily build wealth over time. Make Lumpsum Investments Along with SIPs, voluntary lumpsum contributions into long-term assets whenever you have surplus funds can accelerate wealth creation. Even occasional lumpsum additions make a significant difference to the overall corpus. Increase Your SIPs Annually As your income increases, make sure your investments grow as well. Increasing your SIP amounts every year helps your wealth stay in line with inflation and your rising lifestyle needs. Increase your SIPs yearly and anchor them to at least 30 percent of your monthly income. Stay Invested Remain invested until your financial goals are achieved. Avoid redeeming investments unnecessarily. Frequent withdrawals disrupt compounding. If liquidity is required, consider taking an overdraft loan against your investments rather than breaking them prematurely. Health Insurance Safeguard your family with adequate health insurance. Opt for a minimum cover of 25 lakhs per family member with comprehensive features. Remember that relying only on employer-provided insurance is risky. Independent health insurance is essential. Term Life Insurance Protect your loved ones with a pure term life insurance policy. Ensure a cover of at least ten times your annual income, along with provisions for any outstanding loans. Stay away from mixing insurance with investments. A simple term plan is the most effective solution. Consult a Financial Advisor A full-time, well-qualified financial advisor can simplify your financial journey. Professional guidance ensures disciplined planning, correct product selection, and proper execution of your financial strategy. May this festive season bring abundance and lasting financial peace. (The author is a Chartered Accountant and CFA (USA). Financial Advisor. Views personal. He could be reached on 9833133605.)

A Patient Investor

Writer: Mangesh Kulkarni
Mangesh Kulkarni
Oct 26, 2024
2 min read
Vijay Kedia

Vijay Kedia is a celebrated investor who has amassed significant wealth through patient long-term investments. He entered the market at the age of 19 and has been active in it ever since. Kedia and his firm, Kedia Securities Pvt. Ltd., hold the significant stakes in numerous publicly traded companies. His interest in the stock market blossomed at the age of 14, leading him to start trading at 19. Initially, he attempted to profit from short-term trades but ultimately failed.


After a period, he moved from his hometown of Kolkata to Mumbai in pursuit of better opportunities. After unsuccessful attempts in speculative trading, he shifted his focus to long-term investment strategies. Faced with severe financial difficulties, Kedia chose to take control of his destiny.


It was in 1992, during a bull market phase, that he experienced a stroke of luck. This marked the beginning of Vijay Kedia's investment journey, starting with a modest investment of 35,000 in Punjab Tractors, a move that turned out to be a pivotal decision. Subsequently, in 2004 and 2005, he invested in three small-cap companies: Atul Auto, Aegis Logistics, and Cera Sanitaryware, which saw their values increase over 100 times in the next decade.


Kedia is a firm believer in the SMILE principle in investing, which stands for Small in size, Medium in experience, Large in ambition, and Extra-large in market potential. He emphasises the importance of finding companies with competent management, honest leadership, and promising products that are expected to outperform their competitors and the broader economy. He advises investing in these companies for a period of 10 to 15 years, a strategy he has successfully followed.


Kedia has lived by this philosophy and has amassed a fortune for himself. He has demonstrated that it is indeed possible to accumulate wealth in the stock market without resorting to Futures and Options trading. According to the latest data from Ticker, Vijay Kedia currently owns 15 publicly traded stocks. His net worth is estimated to exceed Rs 1500 crore.

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