03 Dec Suresh Parthasarathy
Suresh Parthasarathy Founder, Registered Investment Advsior (SEBI) and Chief Financial Planner has more than 23 years of experience in the financial industry. Having worked at various levels helped him understand the needs of individuals in personal finance. He is instrumental in helping individuals setting his sights on making individuals wealthy.
Being a certified financial planner, he was instrumental in forming an association for his peers and founder- President of Tamil Nadu Financial Planners Association and heading the same for the past five years. Recently he was elected as President of Independent Financial Professional Association- Chennai.He also writes for Tamil Business magazine Nanayam Vkatan and also appears in Puthiya Thalaimurai TV.
With an aim to spread the financial literacy among the individuals,he addresses various forum and he his regular personal finance expert commentator in Puthiya Thalaimurai – Tamil Television.
To his credit has written more than 900 articles in THE HINDU BUSINESS LINE in various domain such mutual fund, insurance, home loan, debt restructuring, financial planning, investment planning besides personal taxation and annuities.
- What is your view of our economy in the medium to long term?
In the medium to long term economy should be good.Before and after Nov 8 there is no big material change in the status of economy.The unaccounted money which is driving the price of asset class has put to halt at least temporary.
Any society reducing cash in the system will be able to collect more taxes and tax payer are also likely to expand.
The tax rate may gradually come down and it will also widen the tax base.Such situation will argue well for any economy and more so for the world’s highest growing country.
- Is it a good time for entering the markets now? If yes what approach should the investor take?
Both debt and equity market is going through uncertain phase.In equity front, companies are likely to declare poor results at least for one to 2 quarters on back of the poor cash circulation in the system.So,investors preferring mutual fund should consider investing in liquid funds and try to move the funds gradually to equity over the next 3-4 months through daily or weekly STP.
If the market corrects from here by 5- 10 per cent before January investors can bring more money to equity.Fundamental of companies are still good in large cap space and earning 15 per cent will not be a challenge if market corrects from here.So,bring money but in staggered manner.
On debt front,Government securities had good rally and from here it will take quite some time for the rally.
So,investors willing to invest in debt mutual fund should look at Banking and Psu funds,Short term income funds a small portion to Dynamic bonds
Surely such a strategy will reward investors more than the plain vanilla fixed deposits.
- What is the advantage of investing in a Mutual Fund vis a vis investing directly in stocks?
With volatility being order of the day the emotion plays major role in investments.Mutual fund being managed by professional’s and equally mutual fund advisor are also going to help you to tide the situation it is better for retail investors to prefer mutual fund than direct equity.
At portfolio level identifying stocks and holding on to it will be a challenge for investors because of the more dynamic change in the global markets and its impact in Indian equity markets.Although the mutual fund will slightly deliver lower return than direct stocks investors will have some protection in mutual fund than the direct equity due to the professional approach by the fund managers.
- What is your approach to advisory?
Although it is long ways for advisory business to pick up seriously in India,since I have passion for advisory I never faced big hurdle in my advisory services.More over my presence in media over 10 years helping me to create a space in the advisory space.In the last 4 years I have never visited my client office or residence for business and I made a point that it is being a profession I will meet all my clients only at my office.
This has given more confident in my advisory space and all my clients are happy with my transparent approach.
- How do you market your services?
In the last one year I have written more than 50 articles in newspaper and magazine that is one of the major way with which I promote my advisory profession. Apart from that referral bring business to me.
- Do you conduct investor education program? What is your approach to IAPs and what results have you experienced.
I have done more than 30 investors awareness programme last year.I prefers to interact in local language outside of cities.I talk straight, at times critisize investor’s behavior towards investments and this bring more audience and they love to listen to me.The awareness have improved quite drastically in Tier –II and Tier – III.However,the fee based culture is very far from cities.Mostly the people work outside India from Tier- II and Tier III approaches me for their financial planning and wealth management.So,that way the IAPs helping me to get client in small way.
- What are the future challenges and how does one overcome them?
Every challenge is an opportunity.The amount of conviction and the passion will help any distributor or advisor.Entry load abolished still lots of people are in the industry and in the years to come more regulation will come and those are very serious about business will surely grow bigger from here that is my very strong belief.
- What is your key message for potential investors?
Before approach any advisor or distributor do back ground check.Meet him and if your wave length and your advisor/distributor is also in the same band build your relationship for wealth creation.
It is duty of both investors and advisors to trust each other if one link is weak the relationship will break at the earliest.
So,take time before you sign an advisor/distributor.But simple mantra in investment is “Always believe patience pays”.But at the same time try and nourish your portfolio by monitoring at least once in a quarter and weed out the poor performer at least once in a year.
- What is the future of IFAs? How should they handle the proposed regulatory changes, were they to take effect?
Keep equipping yourself, move ahead of regulation and no regulation can bring surprise to you.Change in inevitable in any business or profession those see it is coming always not survived they thrived.So, keep pessimistic thought away from you and always look for positive out of any changes.
- What is your view of demonetization and how would it affect equity markets in the short and the long term?
As I said earlier in any economy which is transparent will always good for the country.So, I welcome the objective.In such a big country always there will be teething trouble on implementation. I am sure over a medium term economy will bounce back.Since the situation is new to me as well as for most of the Indians.Only time will tell how things will pan out.Keep your ears and eyes open for information and use your knowledge to take a right call,since I am planning to apply the same.