An Era of changing mind sets: Nitish Purohit
Change is the only constant and we should always embrace for changes in our life if we have to keep growing and achieving new milestones. From last 4-5 years we have been witnessing this change in the business community to whom we have been advising on their investment decision in the capital markets. Putting more and more money in the existing business for growth and expansion was an obvious choice for every business house and certainly that resulted in concentration of risk.
Invest in land was the second best considered by a business house so that they can set up new factories and materialise their expansion plans. However, money left after all these options was perhaps invested in unorganized landing market. In that entire process of putting more money into the business and expanding the land bank, one thing that has been ignored was creation of a liquid portfolio.
The next generation business community is fuelling the change of mind set and started thinking on the lines of creating a liquid portfolio which not only gives them the flexibility of investing in the financial assets across the capital markets subsequently creating a liquid asset, that can be readily available for future expansion plans.
Earlier monthly savings like SIPs in mutual fund was not the cup of tea for a businessman, it was considered only a retail product for a salaried but seeing the wealth created by SIPs over a period of two decades made them realize the fact that a strong liquid portfolio can also be created with such a simple yet very effective tool.
Other factors like flexibility, taxation, reducing interest rates and diversification within the mutual funds that allows them to invest across various asset class categories that ranges from equity to debt to hybrid to solution-oriented funds and since last few years a wide range of international funds have also emerged which gives you an option to invest across the globe.
To summarize with a simple yet effective tool which gives you an opportunity to diversify your investment across the asset class and help you build a long-term liquid portfolio has made them think that it can be a favourite cup of coffee rather a cup of tea that can taste well and create strong and sustainable wealth creation tool.
Views are personal: The author is Nitish Purohit, Partner, JNV Financial Services.
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