Ensuring Liquidity in the Portfolio

Posted by: Uma Shashikant on Fri, Oct 1st, 2010

I have begun to write a column in Business Standard from today called "Capital Account" that addresses wealth management issues for the investors. The first column is on liquidity and the flexibility it provides to a portfolio. Many investors focus on return and risk in an investment and fail to understand the liquidity constraints that a product choice can impose.  Read more

Worries at 20,000

Posted by: Uma Shashikant on Wed, Sep 22nd, 2010

Amidst the celebration of the new high at the equity markets, I am somewhat worried. For an inveterate optimist who believes there are always good stocks to be found in the Indian markets, the worry is strange but strong.  Here are the four reasons why I have pared down my equity exposure and am unwilling to participate in the "rally". Read more

MF Returns: May 2010 CA Exam Question

Posted by: Uma Shashikant on Tue, Sep 21st, 2010

The following question had been asked in the CA examination in May 2010 (Management Accounting and Financial Analysis [old syllabus] - question 2[b] on mutual funds). Read more

Mutual Funds: Fee-based Selling Alone Won't Do

Posted by: Uma Shashikant on Mon, Sep 20th, 2010

Many seem to think that fee-based advisory is the only way to do financial product distribution. I argue the need to allow a range of services, in the interest of growth and expansion of the business.  Allowing only fee-based advisory may shrink the markets and may leave out the small investor. Read more

Distribution of Financial Products - Push vs Pull

Posted by: Uma Shashikant on Mon, Sep 6th, 2010

Even as we continue to debate the lack of incentives for selling mutual funds and the mis-selling nightmares in insurance products, the space I was watching was the National Pension Scheme (NPS).  Here was the product that was perfectly designed, after years of research and filled with the good intention of taking pension products to the population that needed it most. The product was a good one, offered choices, was available at low costs and should have taken off, if the belief, especially among regulators, that a good product would sell from “pull” rather than “push.” Read more