Pattu talks about different aspects of risk in personal finance at the 6th Bangalore DIY Investor Meet, 31st July 2016. https://freefincal.com/

1. RISK!

2. Risk of being part of AIFW!

3. Before objective analysis
Risk of not digging deep
After objective analysis!
Risk of digging deep!

5. Paralysis
Before After

6. Priorities
Power of compounding does not matter for ~ 5Y or less

7. Popularity

8. “It Seemed Like a Good Idea at the Time”

9. A minimalist portfolio

10. Asan Ideas for Worthless information!
“Ashal Sir, Please name the two mutual
funds you hold”
When Ashal says MDBSC* ….

11. A Mutual Fund SIP is Hope,
Not a Strategy!
Currently there are ten funds that are 20-years old
In 2036, there would 500+ 20-year old funds!
Mutual Funds are not LIC polices!

12. A Mutual Fund SIP is Hope,
Not a Strategy!

13. A Mutual Fund SIP is Hope,
Not a Strategy!

14. Systematic investing + Systematic Risk
Management
• Clear Asset allocation
• Watch for deviations regularly (yearly first and
more often later)
• Rebalance (once a Y, once every few Y and
more often later)
• Quit while ahead
All this is possible with MDBSC!

15. Star Ratings

16. How to review a mutual fund SIP?
Do we have a review strategy in place?

17. How to review a mutual fund SIP?

18. How to review a mutual fund SIP?

20. Buying on dips!

21. Buying on dips = SIP!
How many of us are going to compare!

22. Buying physical gold <>
Investing in gold
Aim: accumulate gold for daughter’s marriage.
Aim: Hedge against inflation
Aim: Reduce volatility in my portfolio?
Buy physical gold or use gold funds, etfs .
Bonds?

23. Gold always moves up!

24. Gold always moves up!

25. Gold always moves up!

26. Gold always moves up!
Riskometer

29. NAV always moves up!

30. Recency Bias - 1

31. Risk Ignorance
FD rates have gone down, so can I
invest in debt funds?
Can I use balanced funds for SWP in
retirement?
Can I invest in sector funds for next 3
years?

32. Liquidity Ignorance
NPS only for tax deduction
Use tax-free bonds to get tax-free returns
Real Estate

33. You cannot choose the “right”
mutual fund or stock!
Invest in “good stocks” and
forget about it!
Please suggest a mutual fund to
start SIP for next 15 years.

34. Stock investing vs Mutual
Fund investing
Timing the Market

35. Possibility vs probability
Hot-hand fallacy