CEO Speak

Goals give us direction. They put a powerful force into play on a universal, conscious, and subconscious level. Goals give our life direction. As we set out for the new decade, I am sure many of us are making one, some or many goals and recalibrations in our heads atleast, even if they are not spelt out as resolutions. If you are consciously looking at your financial goals, what I am about to say may make sense to you. And if financial goals are not in your mind space at all at this moment, I hope I can make you tweak your mind space a bit.

Things to Remember about Financial Goals:

Most of our life goals have an underlined financial goal:

  • Short Term: Buying a home, car, vacation, etc.
  • Long Term: Childs education, retirement planning, etc.

Important to plan:

  • Each of the above mentioned life goals needs financial goal setting, hence, the necessity to save and invest basis specific financial goals
  • It needs clear assessment of the time horizon for which you need to invest, your risk appetite and the asset class that you select

Importance of starting:

  • If one starts saving early, one gets the benefit of time on his side for building up of the corpus
  • Whenever you decide on a life goal, plan and make a start of an investment with the goal as the objective. That by itself will give you the time horizon and the perspective of what financial instruments you may want to select


Avoid investing basis “Tips, Tradition or Timing”:

  • Like we have learnt and educated ourselves on the use of technology in so many aspects of our lives, it is important that we read about the financial products that are available in the market today like Mutual Funds and not limit ourselves to traditional avenues of investments
  • Avoid investing basis tips from friends or getting skewed towards traditional investments just because our earlier generations have done it
  • Select your investment asset class according to your financial goal like your short term goals can have investments in bank deposits, debt mutual funds etc and your long term goals can have investments into equity mutual funds, equity markets, PFs/PPFs etc.

Save Regularly:

  • Regular savings must be a part of any financial planning and can be in the form of SIPs (Systematic Investment Plans in Mutual Funds) or recurring deposits in Banks
  • The advantage of SIPs must be understood by you as an investor especially when you are investing inthe equity markets through the SIP mode
  • It is important to remain goal focused and keep investing in the fund that was selected for a particular goal even if the markets are giving uniform returns and challenging times like we are in right now

Importance of informed Advise from an expert:

  • While it is crucial that one reads about mutual funds and other financial instruments available in the market, it’s always a good step to take advice from your financial planner or wealth advisor as they are the subject matter experts
  • It is important that you understand what they are talking about, understand the risks, and go through the data points that are now available as the mutual fund industry has also gone through multiple cycles


In conclusion, giving you the broad perspective of the growing mutual fund industry - The Total Asset Under Management has crossed Rs 27 Lakh Crores with 8.65 accounts (or folios as per mutual fund parlance) as on November 30, 2019.This is 66th consecutive month witnessing rise in the no. of folios. There is a reason why there is continued and sustained growth in the number of investors investing into mutual funds. And it is not the just the Sensex rising or falling. It is an indication of the growing number of matured and educated investors who are staying invested "inspite" of the short term negative returns, with an understanding that the Sensex is a reflection of only a handful of stock performance and believing because of historical data points that staying invested and investing regularly will lead them towards wealth generation in the long term.

We at L&T Mutual Fund believe in our strong investment philosophy which is further complimented by our internal processes and guidelines. We believe our funds have and will stand the test of challenging times as they are guided by fundamentals of objective based investing, asset quality management and our quality of stock selection.

Season’s Greeting and New Year Wishes to you on behalfour entire team at L&T Mutual Fund. We hope to continue partnering you in your financial journey and thus achieve your life goals.

Source: AMFI

Disclaimer – The article (including market views expressed herein) is for general information only and does not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this information. The data/information used/disclosed in the article is only for information purposes and not guaranteeing / indicating any returns. The article provides general information and comparisons made (if any) are only for illustration purposes. Investments in mutual funds and secondary markets inherently involve risks and recipient should consult their legal, tax and financial advisors before investing. Recipient of this document should understand that statements made herein regarding future prospects may not be realized. Recipient should also understand that any reference to the indices/ sectors/ securities/ schemes etc. in the article is only for illustration purpose and are NOT stock recommendation(s) from the author or L&T Investment Management Limited, the asset management company of L&T Mutual Fund (“the Fund”) or any of its associates. Any performance information shown refers to the past and should not be seen as an indication of future returns. The value of investments and any income from them can go down as well as up. The distribution of the article in certain jurisdictions may be restricted or totally prohibited and accordingly, persons who come into possession of the article are required to inform themselves about, and to observe, any such restrictions.

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