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Vivek

Vivek Shah  |60 Answers  |Ask -

Financial Planner - Answered on Feb 24, 2023

Vivek Shah is a SEBI registered investment advisor and certified financial planner from FPSB India. He has over 18 years of experience in financial planning.
Shah founded Finrise, a financial planning and wealth management firm, in 2011. He believes that equity investment is the only way to generate long term wealth.
He has an MBA in finance, a degree in chartered accountancy and is a registered life planner from Kinder Institute of Life Planning, USA.... more
Sashi Question by Sashi on Jan 27, 2023Hindi
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is it wise to enter adani green energy now

Ans: Hello Sashi,

First of all we need to understand the questions being asked by Hindenberg and try to evaluate whether the allegation made by them makes any sense. If anyone goes through the Hindenberg report than the allegations and questions asked can be bifurcated into below broad categories:

1) Violations of Exchange and listed rules
2) Dubious Intra- Party Transactions
3) Use of Shell companies outside india ( Mauritius) to manuipulate the stock price
4) Money laundering through private Adani companies in listed companies of Adani inorder to look Balance sheet good.
5) Inexperienced Chartered accountants to audit the companies.
6) Using stocks as collateral for debt.

Looking at this points and also the allegations done by Hindenberg, i am fine to believe that there few acts which they taken for granted and manipulate the exchange and listing rules but calling Adani company as CON or Fraud is not what i would call this company. Companies margin are very low as compared to their cost of capital but being an infrastructure led company its takes long gestation period to realise the cash flows. Adani is playing important role in building infrasturcture in India with ports, power, airports etc and even though company is highly levered to build the assets and cash flow, the company has good physical assets in the balance sheet. Even though it may not a investible company for a retail invstor with the sort of volatility and margins they are earning.

Valuations are very much stretch with last 2 years price going to the roof. As a retail investor, one should avoid this company due to many uncertainties going forward.


Disclaimer: This is just for educational purpose and this should not be taken as advise for buy or sell.
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Vivek

Vivek Shah  |60 Answers  |Ask -

Financial Planner - Answered on Feb 27, 2023

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Is it good to buy Adani Power now?
Ans: Hello Banibrata,

First of all we need to understand the questions being asked by Hindenberg and try to evaluate whether the allegation made by them makes any sense. If anyone goes through the Hindenberg report than the allegations and questions asked can be bifurcated into below broad categories:

1) Violations of Exchange and listed rules
2) Dubious Intra- Party Transactions
3) Use of Shell companies outside india ( Mauritius) to manuipulate the stock price
4) Money laundering through private Adani companies in listed companies of Adani inorder to look Balance sheet good.
5) Inexperienced Chartered accountants to audit the companies.
6) Using stocks as collateral for debt.

Looking at this points and also the allegations done by Hindenberg, i am fine to believe that there few acts which they taken for granted and manipulate the exchange and listing rules but calling Adani company as CON or Fraud is not what i would call this company. Companies margin are very low as compared to their cost of capital but being an infrastructure led company its takes long gestation period to realise the cash flows. Adani is playing important role in building infrasturcture in India with ports, power, airports etc and even though company is highly levered to build the assets and cash flow, the company has good physical assets in the balance sheet. Even though it may not a investible company for a retail invstor with the sort of volatility and margins they are earning.

Valuations are very much stretch with last 2 years price going to the roof. As a retail investor, one should avoid this company due to many uncertainties going forward.


Disclaimer: This is just for educational purpose and this should not be taken as advise for buy or sell.

..Read more

Latest Questions
Ramalingam

Ramalingam Kalirajan  |5163 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 23, 2024

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I am 42 and want to retire by 60, I have 10 lacs in MF, 10lac in equity, 50 lac in FD, 4cr in real estate land shops etc. I don't own a house. What should be my strategy from here my monthly expenditure is close to 2 lac.
Ans: Current Financial Overview
You are 42 years old. You want to retire by 60. You have Rs. 10 lakhs in mutual funds. You have Rs. 10 lakhs in equities. You have Rs. 50 lakhs in fixed deposits. Your real estate investments are worth Rs. 4 crores. You don't own a house. Your monthly expenditure is Rs. 2 lakhs.

Assessing Your Financial Position
Mutual Funds:

Rs. 10 lakhs in mutual funds.
This provides potential for growth.
Equities:

Rs. 10 lakhs in equities.
This is good for long-term growth.
Fixed Deposits:

Rs. 50 lakhs in fixed deposits.
Safe but with low returns.
Real Estate:

Rs. 4 crores in land and shops.
Significant value but not liquid.
Monthly Expenditure:

Rs. 2 lakhs per month.
High living expenses.
Investment Strategy
Emergency Fund:

Keep at least 6 months of expenses.
This means Rs. 12 lakhs.
Diversify Investments:

Increase mutual fund investments.
Focus on large-cap and balanced funds.
Fixed Deposits:

Consider reducing FD amounts.
Reinvest in mutual funds for better returns.
Equities:

Continue with equity investments.
Diversify within sectors.
Real Estate:

Real estate is illiquid.
Consider selling some assets.
Reinvest proceeds in diversified mutual funds.
Retirement Planning
Calculate Retirement Corpus:

Aim for a substantial corpus.
This should cover post-retirement expenses.
Systematic Investment Plan (SIP):

Start SIPs in actively managed mutual funds.
This ensures disciplined investing.
Regular Review:

Review your portfolio every six months.
Adjust based on market conditions.
Benefits of Actively Managed Funds
Expert Management:

Professionals manage actively managed funds.
They aim to outperform the market.
Better Returns:

Actively managed funds often give higher returns.
They adapt quickly to market changes.
Disadvantages of Index Funds
No Outperformance:

Index funds mirror the market.
They can't outperform during good market phases.
Lack of Flexibility:

Index funds lack flexibility in volatile markets.
Disadvantages of Direct Funds
Complex Management:

Direct funds need more personal management.
Regular funds offer professional oversight.
Regular Funds Benefits:

Investing through MFD with CFP credential is beneficial.
They provide expert advice and management.
Owning a House
Consider Buying a House:

Owning a house gives stability.
It reduces future rent expenses.
Use Existing Assets:

Use some FD or real estate proceeds.
Fund the house purchase without heavy loans.
Tax Planning
Utilise Tax Benefits:

Invest in tax-saving instruments.
Reduce taxable income and save more.
Final Insights
To retire by 60, focus on diversified investments. Ensure an emergency fund. Increase mutual fund investments. Consider selling some real estate. Reinvest proceeds wisely. Buy a house for stability. Review your portfolio regularly. Consult a Certified Financial Planner for personalized advice. Stay disciplined and focused on your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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