Purushottam Agrawal, a businessman, has experienced several market cycles across his life of 57 years. It takes a great deal to endure the volatile market movements and stay invested. With unmatched patience, he retained his trust in his advisors and the markets for all investment decisions.
Jawahar Motwani is a second-generation financial advisor in his family. His legacy in the advisory business is also carried forward with his third-generation catering services to their clients’ third generations.
From a humble beginning as a mutual fund distributor in early 2008, Jawahar has seen tough times in coping up with deep market corrections during the global financial crisis. The markets were also clouded with the guaranteed-return, fixed-income investment options offered by banks and post offices. However, considering the choppy market conditions, he advised his clients to invest through Systematic Investment Plans (SIPs).
SIPs have been famous for helping investors average their investment costs, but their greater utility comes from the discipline SIPs bring to the investors through consistent savings.
While traditional investment products have been more prevalent, Purushottam got easily convinced about investing in mutual funds. He had been managing his business for quite some time now, and he could understand the power of wealth creation through equity markets. At the same time, he could not invest in stocks directly due to his business commitments.
Mutual funds came as an obvious choice for him to invest towards his financial goals like saving for his retirement, marriage of his children, and various short-term objectives. Jawahar also advised him to maintain an emergency corpus to tide over any short-term financial contingencies.
Once the preliminary discussions were done with Purushottam, the Portfolio was designed with a balanced approach suiting his risk appetite, age and goals. This turned out to be a portfolio of good compounding returns. Portfolio de-risking was also ensured during the annual review, steadily shifting equity assets towards debt schemes. This ensured that the portfolio risk stayed suitably aligned with the objectives of prudent financial planning.
Talking about his advisory experience with Purushottam, Jawahar shares, “Across the market ups and downs, it was a tough time for the investors to stay put in the markets, but Purushottam continued to trust us and our planning and fund selection across the market movements. While the returns were lower initially and also negative for some time, the power of compounding ultimately cast its shadows on the investments, and the portfolio returns went up substantially.”
A pleasant investment experience for Purushottam also helped Jawahar gain more clients through word-of-mouth publicity. Jawahar shares, “Purushottam Ji gave us several references which allowed us to manage portfolios of some more families. We try to make as much as possible smooth investment journey of our every client with our dedicated marketing and sales team as well as a service team.”
While Jawahar has had a long relationship with Purushottam Aggarwal and his family across different generations, the fundamental principles of investing have continued to be the same. When one stays disciplined through the investment journey, it becomes easier to sustain the investing momentum and continue to invest towards the financial goals.
Jawahar sums up his journey with Purushottam while also sharing some suggestions for mutual fund investors as below:
Disclaimer Financial Planning of Purushottam Agrawal is based on the “personal opinion and experience” of Jawahar Motwani, Director, Motwani Consultancy. It should not be considered professional financial investment advice. No one should make any investment decision without first consulting their advisor and conducting research and due diligence.
Jawahar Motwani, Director, Motwani Consultancy