What is fiduciary? Why to avail services of someone who works in a fiduciary capacity?
Fiduciary Investment Adviser is someone who creates a blueprint, advises and manages investor's finances responsibly as a trustee. Falcoy Financial is a Fiduciary Investment Adviser who works in a fiduciary capacity. We do not work for commission or brokerage from financial products. Those who work in fiduciary capacity avoid conflict of interest which is of utmost importance. Investors should make themselves aware about this before avaling any services. Engaging in a fiduciary capacity is the supreme measure of functioning which is valuable, productive and satisfying to our clients. (For more details read our 'Edge Over Others' and 'Fiduciary Capacity' section on 'What We Do' page).
Why people normally avoid availing services of professionals?
People are not accustomed to pay for expertise and seek professional help. They try to do it all on their own which leads to following of wrong practices and compromising on expertise and efficiency. People also think if they have Agents and CAs, they do not have the need for Wealth management and Financial Planning. They do not understand Wealth Management and FInancial Planning is not the job of an Agent or a CA. One should focus on maximising the income from primary sources and seek professional help to manage one's finances, since mother of investments will always be the income from primary sources. If they do not earn, they cannot invest. People should focus their time and attention to increasing their income from primary sources rather than spending time managing their finances.
How are wealth managers different from the agents?
The agents sell a product which would give them a better brokerage thereby unable to take into consideration client’s risk appetite, objectives and cash flow needs which often leads to mis-selling. The agents are not accustomed to follow an analytical approach or research oriented process. As compared to agents, wealth managers are well qualified professionals. The wealth managers take into account relevant factors and create a portfolio which suits the client.
What is the difference between a chartered accountants and wealth managers?
Wealth Management is not the job of a CA. We take in to account client’s goals, risk profile, cash flow situation, asset allocation, objectives, research on macro economy factors, analysis of different asset classes and investments. The expertise of a CA lies in the areas of accounting, taxation, audit and government regulations. They are very well-versed in these areas of work.
How to avail our services?
Connect with us by visiting the 'Contact Us' page and we will make you understand how we can bring about a change in your life financially. We are based in Mumbai, India.
Can you guys offer Wealth Management and Financial Planning services out of Mumbai or out of Inida?
Wealth Management Yes. It is 100% possible to provide our services to Indian residents who are working abroad. NRIs and foreign residents who seek to invest in India or seek a professional help. The reason being majority of our work happens online. We can communicate with our client via Phone or Skype. Face to face meetings may also be arranged as per the convenience. The work is more importnat than having an office in your city / residence / location. The change which we bring in to our client's lives financially is noteworthy and does not require any physical presence in your city / residence / location.
How do you inform your clients about mis-selling of financial products?
Wealth Management We guide our clients regarding mis-selling of financial products due to which they become self aware to stay away from such malpractices. it also includes being aware of such people who have conflicts of interest which encourages them for mis-selling of ifnancial products.
What is a portfolio?
A group of investments together is known as a portfolio.
What are returns?
Appreciation in the value of investments, dividend, interest, rent etc. depending upon the asset class together constitutes returns.
How is fixed income important as an asset class?
An asset class like fixed income provides stability to the portfolio. It preserves the capital. Fixed income asset class is safer than investing in equity markets and represents a low risk investment. Fixed income can be used to take advantage of the interest rate scenario.
How is equity important as an asset class?
Equity as an asset class gives better returns than any other asset class when held for a longer term. Equity delivers returns greater than inflation. It is a good option for long term investments. Well diversified investments across sectors help create wealth. People have made money in equities by staying invested over a longer horizon. Being disciplined and patient leads to sustainable wealth creation over a period of time. During a slowdown when the equities do not perform well, creating a panic and losing patience leads to a diversion from goals as well as the objectives of wealth creation. As a part of well diversified portfolio, they have proved to be the best way to grow capital and beat the inflation. The tax on equities under long term capital gains tax is nil. The dividends received from equities are tax free in the hands of investors. The earlier one starts investing, more time he gets for the money to grow. Trying not to time the market is very crucial.
Do you make all the investments in the client’s name?
Yes. The investments are our client’s precious assets and only belong to them. All the investments are made in the client’s name and this will help to know them what they own in their portfolio.
What happens when inefficient / wrong / ad-hoc practices for investing are being followed by investors and they do not have an idea or are unaware about it?
What is the difference between insurance and investment?
Insurance is an agreement between the insurer and the policyholder to make a payment as compensation in the future if any unexpected event occurs. This payment may vary from hundreds to a few crores. The purpose of life insurance is to provide protection to the family in case the only earning person dies unexpectedly. If the individual who has bought a pure term insurance plan survives then the company would not pay back the premiums paid till the policy term which is also the case regarding mediclaim / health insurance where if any of the people covered are hospitalised, the company pays out the claim amount. If the individuals covered under mediclaim / health insurance are not hospitalised the company does not return the premium paid.
Purchasing an asset in hope of an income or appreciation in the future is known as investment. Investment also refers to deployment of money by individuals or institutions for conducting business activities. Investments are made with an objective of making profit. Insurance is an expense and making a profit out of insurance is not an objective. The insurance aspect is explained in detail in our articles ‘Investing Mistakes’, ‘Insurance Goof-Up’ and ‘Inaccurate Notions about Insurance’ under our ‘Articles’ section. Do not forget to read it.
What is compounded annual growth rate (CAGR)?
Compounded annual growth rate refers to the year-on-year growth rate of an investment over a particular period of time. This also takes into consideration the effect of compounding. For eg: An amount of Rs.1,08,000 is invested for a period of 10 years after which the investor gets back Rs.2,50,000. Thus, the return would be Rs.2,50,000 - Rs.1,08,000 = Rs.1,42,000 or 131.48% return in 10 years. Here, it does not mean that the return is equal to 13.15% (131.48/10) per year. By using the CAGR formula, the compounding factor is taken into account, so the actual return comes to 9.77% per annum.
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