Earning money might not be your primary goal but it will definitely be in one of your secondary goals as it is essential for survival. Deepali Sen who is a financial expert believes in Karma and live by the quote “An aim in life is the only fortune worth finding” by Robert Louis Stevenson. After serving the industry for almost 16 years, she set up her own Limited Liability Partnership Firm in 2012 to cater to the financial needs of people. She is often seen on Zee Business channel addressing people’s queries. Also, her financial articles are often read by the public in The Economic Times and some other leading financial papers. Read more about this financial planning expert in her exclusive interview with BananiVista and know what mistakes you should avoid while investing your money.
BV: Did career in finance was planned or did it just happen?
Deepali: I was always money conscious. Doing what I do today is a combination of my curiosity about money, being in Mumbai (the financial capital), selling financial products and wanting to transform financial lives. One thing led to another and here I am.
BV: Job to Financial Planning and running Srujan Financial Advisers LLP; what was the reason behind this switch?
Deepali: I was in a mono-line industry. While it manufactured one of the most effective investment products, I missed the satisfaction of holistically changing an individual’s/family’s financials. This lack of satisfaction and my want of transforming lives led to the change.
BV: What made you write your book “Why Greed is Great?”
Deepali: I wanted to clarify financial planning. I wanted people to get ambitious about their money, not just about earning it but also in terms of nurturing it. Through 12 interesting life stories, it sheds light on the thumb-rules to follow and the landmines to avoid in the space of personal finance.
BV: Why many people are still afraid to invest their money in mutual funds?
Deepali: Lack of proper knowledge is the biggest reason behind it. Equity Mutual funds are volatile while non-equity ones are low on risk. It is unfortunate that most of the people only know equity mutual funds.
BV: What can be done to make the people get rid of this fear?
Deepali: Managing their expectations and communicating to them that risk and returns are two sides of the same coin. They need to have a time horizon of at least seven years for a diversified equity mutual fund.
BV: What common mistakes have you observed in the financial planning of Indians?
- They don’t invest enough in comparison to the huge aspirations.
- They buy bundled products (insurance + investments) which are high on expenses and therefore low on returns.
- Most people start investing very late in life. Besides, investing is like planting trees. The earlier you do the faster you can sit under its shade.
- Are fearful of the risks of equities and therefore invest majorly in FDs.?
- Take big loans.
BV: A quick tip for our readers that can help them in making financial planning!
Deepali: One must customize the financial decision based on one’s needs/goals. Cut and Paste seldom works. Don’t try and ape what your neighbour is doing!