Financial markets rarely stand still, and neither do the ways in which people can put their money to work. It was with this in mind that Ashutosh Financial Services organised a session that looked beyond the usual fixed deposits and mutual fund SIPs to explore the fuller range of options available to investors today. The company has long held the view that sound financial decisions are built on a foundation of clear, practical knowledge, and its ongoing calendar of educational sessions reflects that belief in action.
The event, titled “New Age Investment Opportunities,” was held on 24th January 2022 in Rajkot for members of Rotary International. Daxesh Kothari led the session, drawing on his experience in investment advisory to walk the audience through a landscape that has changed considerably over the past few years. For an audience largely accustomed to traditional saving instruments, the session offered a timely reminder that the investment toolkit available to Indian investors has expanded well beyond what most people were taught to rely on.
The session opened by comparing conventional approaches with what Kothari described as a “new age” approach across several asset classes. On equity mutual funds, he pointed out that many investors still pick schemes somewhat randomly or chase every new fund offer that comes along, without necessarily considering whether it adds value to their existing holdings. A more considered approach, he explained, involves building a well-diversified portfolio across large cap, mid cap, small cap, value, thematic, and even foreign funds, while also keeping an eye on which asset management company is managing each scheme, so that exposure isn’t unintentionally concentrated with one fund house. He also touched on quartile performance monitoring, a method of tracking how a fund ranks against its peers over time rather than judging it in isolation.
Debt investments came in for similar scrutiny. Returns on debt mutual funds had fallen to a yield range of roughly 3.5 to 6 percent at the time, and bank fixed deposits were offering close to 5.4 percent for a five-year tenure, both modest by historical standards. Kothari suggested a few alternatives worth considering, including corporate fixed deposits placed through family members in lower tax brackets to improve post-tax returns, tax-free bonds with nine to ten years of residual maturity yielding around 4.55 percent, and insurance-linked investment plans offering assured, tax-free returns in the range of 5.5 to 6 percent over 15, 20, or 25-year terms.
Portfolio Management Services, or PMS, were presented as another avenue worth understanding properly rather than adopting without comparison. The session explained that PMS allows a fund manager to manage a stock portfolio on a client’s behalf across various styles such as large cap, multi cap, value, or sectoral themes, typically requiring a minimum investment of fifty lakh rupees. Diversifying across different PMS managers, rather than concentrating with just one, was highlighted as a way to manage risk more sensibly.
A significant portion of the session was devoted to global investing, particularly in US equities. Kothari made the case that the US market represents nearly half of global equity market capitalisation and is home to a large share of the world’s most recognised companies, making it a natural avenue for geographical diversification. He also noted that valuations for comparable businesses can differ meaningfully between Indian and US listed companies, illustrating this with a few real examples from the retail, automobile, and technology sectors. For those interested, he outlined two practical routes: investing directly in US stocks and ETFs through an approved platform, or investing through Indian mutual funds structured as fund-of-funds that in turn invest in US markets or particular global themes such as healthcare, technology, or commodities. He referenced the Liberalised Remittance Scheme, which currently permits individuals to remit up to US $250,000 per year for such investments.
Unlisted shares and Alternative Investment Funds rounded out the discussion. Kothari explained that early investment in promising unlisted companies can offer an early-mover advantage, though it comes with the discipline of assessing a company’s promoters, business model, competitive strengths, and prospects of eventually going public. For those preferring a more structured route, AIFs managed by experienced institutions offer professional stock selection, typically requiring a minimum commitment of one crore rupees over a multi-year horizon.
The session closed with a quote from Albert Einstein about trying different approaches to get different results, a fitting note for a discussion that encouraged the audience to look at their portfolios with fresh eyes. Sessions like this one reflect Ashutosh Financial Services’ continued effort to help individuals understand the options in front of them, so that whatever they choose to do with their money, it is a decision made with clarity rather than habit.
