We are One Year Old! Yippee!

Time flies they say and it couldn’t be truer about how fast a year has passed since Portfolio Yoga got started. I have been writing on public forums since 2004 with focus mainly on trading and technical analysis and the initial game plan was to provide reader’s with data backed analysis that is both interesting and yet actionable. Despite the fact that Bombay Stock Exchange is Asia’s oldest stock exchange, when it comes to data, we are a long way behind many of our peers. The fact that we decided to create an Index a century after the idea was born in the United States is a story to tell in itself.

Trading is a tough business with success rate being lower than starting any other business. In my twenty years in market, I have seen both riches and the horrors that accompany success and failures. While data shows that  majority of businesses do not survive for 10 years, when it comes to trading, that time frame gets drastically cut down with a large majority of traders quitting it way early (unless they are having a full time job or a Inheritance on which they can draw their financial strength from). Any wonder then that more people want to offer services to help you decide what to buy / sell than do that on their own.

But if you have been a reader of this blog, you would have noticed that these days rather than talk / write about trading, my focus has shifted to the Mutual Funds arena specifically that of Equity funds since my expertise in markets helps me understand them better. In much of the world (democratic, liberal countries), equity has been the strongest driver of growth in terms of risk adjusted returns (Inflation adjusted returns) compared to every other asset class. In India though, Real Estate has provided way better returns (unless you were lucky enough to invest a large enough sum in few stocks that have given a zillion percent in returns) than other asset classes. In fact, despite my own inclination to not invest in Gold, Gold too has provided decent returns (thanks to both its rise in the International markets plus the continuous depreciation of the Rupee) which are very much comparable to one that is received by investing in equities.

Managing other people’s money is a multi-Billion Dollar enterprise world over. Everyone loves to try and beat the market though on the long term, very few actually possess the talent to do so without taking risks that could ruin their capital. Mutual funds are a good way to take part in the growth of equity for those who aren’t willing to put in the hard work of identifying opportunities by buying stocks of companies they believe in directly.

With real estate getting bogged down both in terms of prices being way off from what most people can afford as well as in terms of fresh regulations, equity investing is finally coming of age. Assets under Management by Mutual Funds / PMS / Hedge Funds have seen a steady growth reflecting this trend.

But the big question that I am unable to get an answer for is whether investors are getting the maximum buck for their investments. In my previous blog posts, I have showcased how even random investing can provide better returns than fund managers and given the churn that most mutual funds see in their portfolios, one does wonder whether a fund manager really possesses better knowledge about companies and industry than a layman on the street.

I believe every investor wants to maximize the returns he gets for the money he invests but that is not possible without having an in-depth understanding of where and how the returns are being generated. I hope that Portfolio Yoga will fill that gap by providing investors reference and understanding of risk, rewards and opportunities. Being neither a distributor of mutual funds, an agent of Insurance or a fund manager (PMS/ Hedge Funds), I hope that this site can provide you with a neutral perspective of things.

Investing is all about probability and over the coming years, I hope that Portfolio Yoga will provide you with the right tools that not only help you in selecting the right investments but also enable you to understand where you stand and the probability of you reaching your financial goals. While it’s true that there is no gain without pains, it’s also true that enduring pains do not assure of gains.

And before I conclude, let me thank from the bottom of the heard to you, dear reader since without your support, it would have been one hell of a lonely journey (hope it ain’t too cheesy :D). Thanks for being part of this journey. So, here’s me signing off and hoping for a awesome 2016 and beyond.

Disclaimer: The information contained within this blog is provided for informational & educational purposes only and is not intended to substitute for obtaining professional financial advice.