“Financial Advice” is probably the most opaque financial concept today. A country like India has witnessed a lot of “self-help” as far as managing finances is concerned – citizens rarely sought financial advice because they were unaware of such services or wanted to take care of their finances themselves.

This has led to a situation where Indians barely understand various savings and investment vehicles other than regular debt savings. This has created indifferent returns and sizeable opportunity losses for the financially “illiterate investors” year after year. Even more worryingly, people have lost money in “get rich-quick” schemes/ideas – the genesis of which can be traced back to incomplete/improper financial advice

This article will attempt to explore why financial advisors are best suited to advise and guide Indians in their wealth creation journey in a professional manner.

Dismal Indian markets

The unpredictable nature of the rupee is a reflection of the uncertainty in the international market. Notwithstanding international rumblings, the perceived value of the rupee has also been affected by domestic factors like inflation concerns, advance tax collections (in the 2nd quarter of 2011) and a worsening political will to push through industry friendly reforms. With volatility pushing the envelope, it has become necessary for a financial advisor who can keep his head on his shoulders and make sure you stick for the long haul without falling by the wayside.

During good economic times, people think about using the services of a financial advisor and during bad times, do away with their services. However, once the markets go down and wealth creation and preservation becomes critical, the benefits of hiring a financial advisor are innumerable. It goes without saying that if their services were used in good times, it would also help come out of the difficult times in the best manner possible.

Remember that a financial advisor is supposed to know the intricacies of the field he is in – he can guide the investor through an indifferent period by helping him make prudent and efficient financial decisions.

In the finance world, time is equal to gold

To invest wisely, financial knowledge is crucial. The average investor in India does not have the time to understand stocks in an intense manner, nor is he capable of undertaking research properly to follow market trends.

A financial advisor, on the other hand, has the resources to capably perform more research than the average investor. He has quicker access to relevant financial information and can follow and react efficiently to capitalize on a market trend .

The importance of proper resource allocation

An individual has several priorities in life, starting from his children’s education through to their marriage and finally, building a retirement fund. In India, we often hear stories of how parents are left with little or no savings after spending lavishly on their children’s weddings. In reality, how many Indians are able to successfully allocate resources for their family needs?

A financial advisor can help you prioritize your goals and ensure that the long term financial requirements are taken care of. An ideal advisor plays a central role in the client’s lives by helping them pursue each milestone while minimizing losses.

Erase your tax worries

The yearly filing of taxes is mostly considered a troublesome ritual by Indians. In India, financial advisors are often besieged by individuals who have no clue on how to file their taxes or make their investments. A financial advisor provides a clever tax saving plan that will ensure that the individual benefits the most.

India has a growing list of small tax defaulters and it is clearly evident that these individuals have a lack of financial planning in their lives. By employing a wiser approach to tax filing, their tax niggles can be taken care of efficiently.

Conclusion

India presents the financial advisor with a wealth of opportunities. As an Indian first and also as a leading finance professional, I would recommend seeking the services of a financial expert (through any fund house or self-employed) to plan and grow your finances. As I make this statement, I would also like to state that a financial advisor is not a magician. You must remember that it will take time to get results and that it is a joint effort. Also, you will need to review your joint decisions regularly to ensure that the path to your goals is being followed.

The ideal financial advisor will be frank enough to tell you about your exact financial situation, even if it looks troublesome. Once you have chosen a financial advisor through proper diligence, you should rely on him completely and build a foundation of trust, around which you can pursue your financial goals.

To read the complete article, visit this link:
http://economictimes.indiatimes.com/markets/analysis/take-the-diversification-route-to-beat-market-volatility/articleshow/8855682.cms

Disclaimer: All views expressed in this blog are my personal and in no way express or implied, of that of the company I work with, or have worked with in the past.

While the West has realized the importance of execution, we Indians have always relegated action to the background, favoring strategy instead. At the organizational level, our ability to act promptly is stymied by lack of focus, disinterest in following processes and inability to put across a timely framework for measurable development.

As a people, we are opinionated and have a take on every hot button topic. We perennially discuss and debate issues that ail the nation. But we fail to look at the reasons that are impeding growth. Consequently, even as we make noise, we do not take any action or provide solutions. Maybe Amartya Sen had the same thoughts when he titled his book The Argumentative Indian.

If only we could be like the Japanese. Look at the sheer resilience they displayed last month. While the whole world was discussing and giving macro views on Japan’s future in the wake of the near apocalyptic earthquake and tsunami, the resolute Japanese went about demonstrating what action can achieve. In an amazing display of stubborn determination, they rebuilt the Kanto branch road in the Tokyo-Yokohama metropolitan area, which was completely destroyed by the earthquake, in just three days! How did they manage to think and strategize? Indeed, was there enough time to strategize? I don’t think so. They just swung into action!

It’s easy to procrastinate and put off things till tomorrow. Unlike the Japanese, we Indians find it difficult to take stock of a situation and apply corrective measures. So what is it that makes us the way we are? I know that in an attempt to solve this conundrum I’m raising more questions; but here goes…

• We are the world’s largest democracy, but have democratic participation – the right to elect our leaders – robbed us of the ability to act individually and collectively to bring about meaningful changes?
• As a nation we have a hoary tradition of storytelling, which is deeply ingrained in our moral selves. Is this why we have the tendency to boast of past glory while shirking responsibilities when it comes to action in the present?
• Action produces results which, at times, lend themselves to judgments. Is the fear of being judged that holds us back from taking action?

These and many such questions more often than not pique many of us. But are we not resolute enough as a nation to reflect and act in order to bring about change? Change demands action, and action calls for firmness, discipline and resolution.

How can we create an environment which necessitates people to act collectively, not just talk? Let’s for once realize that “necessity of action takes away the fear of the act, and makes bold resolution the favorite of fortune.”

While I sign off, Barack Obama’s Presidential acceptance speech resonates in my mind. …”Our challenges may be new, the instruments with which we meet them may be new, but the values upon which our success depend – honesty and hard work, courage and fair play, tolerance and curiosity, loyalty and commitment – these things are old. These things are true …. It is time we act!”

Disclaimer: All views expressed in this blog are my personal and in no way express or implied, of that of the company I work with, or have worked with in the past.

Showcasing the power of online social networking
I keenly followed online the uprising against Mubarak and was amazed by the unique approach adopted by young Egyptians to highlight the Government’s atrocities against the protestors. Indeed, during the course of the uprising, 32,000 Egypt-themed groups were created on Facebook alone!

The initial call for a protest was by Asmaa Mahfouz on Facebook. Her post “People, I am going to Tahrir Square” started a buzz that mobilized half-a-million people on the streets. That’s the power of online social networking! The protestors also used Twitter and YouTube to aggressively reach out to their fellow countrymen.

Mubarak reacted on expected lines; he blocked all internet and mobile services in an effort to isolate the protestors. But by then the revolt had already spilled on to the streets. All credit must be given to the online media for the role it played in building up passion for the cause.

Fighting for a cause through the online media is effective because the message is personal and devoid of propaganda. Here are some reasons why online media plays a pivotal role during crisis communication:

• It spreads awareness among the participants
• It provides participants with an easy mechanism to stay in touch on relevant issues. For example, a person can get updates on his phone
• It provides participants with a platform to share and distribute information regarding the cause
• It provides participants with the required passion and motivation to excel in their mission

Replicating Egypt’s online success through reputation building for your brand
As a blogger, I believe in the power of online media. My blog has helped me communicate with an audience that shares my passion for life and business.

Every business leader worth his salt is now focused on using the online media to build brand reputation. Spreading awareness about your brand and attracting positive online focus towards it is an asset of reputation building. But how many people actually succeed doing this?

The contrasting brand reputation building strategies adopted by two new IPL teams, Pune Sahara Warriors and Indi Commandos, comes to mind. Pune Sahara Warriors work actively with their online followers to build a fan base. They provide fans with regular updates and ensure every query is answered. Now satisfied fans are eagerly waiting to see their team in action for the first time next month. (And Yuvi’s exploits with both bat and ball against Ireland in the CWC Bengaluru match are an icing on the cake!)

Indi Commandos, on the other hand, appear indifferent and distant. They seldom reply to fan queries nor gave regular updates of the team’s progress. Moreover, the fans’ suggestions for the logo and team name were completely ignored. Indi Commandos stand to losethegoodwill and support of its home base, Kochi. What really went wrong here?

The answer is simple ‒most brand leaders do not have the depth of experience required to build a good online reputation. I believe the following questions should be asked while devising a foolproof solution for reputation building:

• Do I need a long-term or short-term online strategy for promoting my brand?
• Who is my target audience and what’s the best way to reach out to them?
• Do I have the resources to actively interact with my customers on social networking sites?
• Do I have a contingency plan in place to fight negative publicity and brand bashing?
• Is my brand ready to start an honest and transparent conversation with the consumer?

After you have satisfactory answers for the above questions, I suggest using any or all of the following source points for building reputation online:

• A company website showcasing social media initiatives by displaying links to social networking sites
• A formidable presence in sites like Facebook, Twitter, LinkedIn, SlideShare and Digg. Several business leaders and celebrities share regular updates about their personal life and business on these sites. Followers look forward to such updates
• A blog to showcase your brand’s potential and attributes

Remember, it takes time to build a reputation but only a few seconds to destroy it. An online strategy should ensure optimal brand promotion and success. Focus and motivation is the key to success. This was ably demonstrated by the Egyptian protestors.

Disclaimer: All views expressed in this blog are my personal and in no way express or implied, of that of the company I work with, or have worked with in the past.

To read the complete article, visit this link:
http://www.dnaindia.com/money/interview_focus-on-industries-with-global-links-high-cash-flows_1495375

Disclaimer: All views expressed in this blog are my personal and in no way express or implied, of that of the company I work with, or have worked with in the past.