26 Oct Srikant Matrubai
Srikanth Matrubai has been an active investor & advisor in the Stock markets since 1991 and hence is hugely experienced having witnessed the Bull, Bear and Flat Markets.
Srikanth has been highly proactive in Social Media promoting investments in Equity Markets via the Mutual Fund route as he believes that Mutual Funds are the best mode to generate Healthy returns.
Srikanth Matrubai is an AMFI Certified Mutual Fund Advisor and a certified IRDA Corporate Broker and is pursing CFP
His blog www.goodfundsadvisor.blogspot.
He regularly contributes with his insightful writings to various websites like Advisorkhoj, CafeMutual, IFA Insights, Bank Bazaar on various topics ranging from Mutual Funds, Insurance, Personal Finance,etc
1. What is your view on the future of the economy for investors in the medium to long run
The changes bought by the Modi Govt has started bearing fruits. The upcoming GST will only put the Indian Economy on a faster track.The World Economy is getting slower and slower and India is the only Bright spot in a gloomy world.Thus, an investor just cannot ignore India. Already money is pouring in and the flow will only increase going forward.The “Make in India”, the Spectrum Allocation, the massive cleaning up of the Banking Sector via the NPA issue, the YOUNG INDIA POPULATION (with over 60% below 35 years) Digital India initiative is making India a major force to reckon with and Indian Economy is poised for a big leap forward and thus Investors should not miss this Golden opportunity to create Serious Wealth going forward.
2. Is it a good time for entering the markets now? What should be a first time investor’s approach?
Trying to time the market by waiting for a correction is as good as not investing at all. In fact, it is next to impossible to time the market. You need to keep your eyes and ears open on what’s happening at all levels, local, national, international and at the same time move at hyper speed. And, still, all your painstakingly taken investment decision could go for a toss with 1 single news like a Pakistan War or a Rate Cut by RBI, etc.
So, waiting for a Good Time to enter Markets is a waste of time.
Being in Mutual fund industry, I may be baised towards Systematic Investmatic Plan, but there is no other method of investing in the Equity Markets, which can deliver you above average returns and help you actually time the market by buying less units at high levels and more units at lower levels. Yes, Volatility is a part and parcel of the Market movements, but that should not stop an investor from investing in Equities whether he is investing for 1st time or not.
I normally get a new investor to invest via the SIP way. If the First time Investor brings a Lumpsum, then I will ensure that he gets Equity exposure via the STP way.
3. What is the advantage of investing in a Mutual fund vis a vis investing directly in Stocks?
I have personally come from the background of being in Direct Equity Investments and can vouch for the fact that it is not only safer investing in Stocks via Mutual funds but also more profitable.
Investing a Mutual Fund gives you instant diversification. In fact, this is true for even a ‘Sector’ Fund. With just one fund, say “Religare PSU Equity Fund” you are getting exposure to a whole bunch of Public Sector Companies.
There is no other investment class which offers the wide cumulative advantage that the Mutual Fund investment offers. With an investment in Mutual Funds, you get
- Quality Research
- Professional management
- Instant Diversification
- And,Records have proved that majority of Mutual Funds have beaten the Benchmark indicies by a good margin year after year after year.
One example of Quality Research which I normally give is…you have seen stocks of DARLING OF STOCK MARKETS like Satyam Computers, DSQ Software, Global Trust Bank go but but have you ever seen a Mutual Fund go bust.
Direct Investment is more suited for people who have the time, skill, knowledge and access to data to pick stocks.
Yes, Mutual Fund investments also require skill but it can be obtained with the help of a Financial Advisor.
4. What is your approach to advisory?
I do not believe in Mass Retail or catching only HNIs. For me, my investor client should share my passion towards Wealth Creation.I am very aggressive in making my investors mark each and every investment towards a Particular Goal.I believe my job is to ensure that my investors move from Poor to Middle Class to Rich to Wealthy.And my approach is Keep your Investors Weatlh Creation as paramount , your Wealth Creation too will be ensured.I ensure that I am there to Hand Hold my investors towards achieving their Goals in well defined Time Frame.
5. What is your approach to Marketing your services?
I have always believed that your Works speaks a lot more than any kind of Marketing. True, I am active in Whatsapp, Facebook, Twitter but if you observe, almost all of my messages talk on Educating investors about Investment and Finances and never on specific fund.I believe my existing investors are my biggest Brand Ambassodors and I ensure their interest is protected at all times.
6. Do you conduct investor education programme? What is your approach to IAPs and what results have you experienced
I do IAPs only to keep in touch with general investor and give gyann and not to attract him to invest through me. Even if the attendee goes and invest with any other Advisor I am happy as long as I have converted a non-investor into a Mutual Fund investor.
I have observed that IAPs do not bring immediate results but they are worth doing simply for the satisfaction of having changed at least a couple of investors lives…
7. What are the future challenges for an IFA and how does one overcome them?
Challanges are inevitable and is a part and parcel of any profession. If you have the passion, no amount of regulatory hurdles will be an hinderance to your growth. Having a passion towards ensuring your investors Wealth Creation and bringing a positive change in a layman’s thinking about Equities keeps you going.
And, yes, continuous education is paramount to ensure that you are 1 step ahead of the crowd.
8. What is your key message for potential investors?
Equites is the only Asset Class which has consistently beaten all other asset classes including Real Estate consistently over a long period of time.If you are not in Equites, you will be working longer. India is on a cusp of a Huge Growth Trajectory and you have to hop to the Equity Bandwagon to create serious Wealth for yourself.
And, as data proves, Mutual Funds is the BEST way to get an equity exposure.