Sunil : Hey Aakash, did you hear the news about BREXIT ?
Aakash : What is BREXIT, Bro ?
Sunil : ‘Brexit’ stands for Britain Exit wherein the British voters chose to withdraw from the European Union (EU) in a historic poll on June 23, 2016.
Aakash : Ok. So how does it matter to us ?
Sunil : Ohh, you dont know ?? The Sensex tanked by almost 1000 points that day. Later it closed 600 points down.
Aakash : Wow !! Doesnt that look like an opportunity to invest ?
Sunil : You are always on a different tangent. What about the flipside of BREXIT ?
Aakash : Thats what I am asking. What is the flipside of BREXIT for us ?
Sunil : Well , am not too sure !! But if everyone is worried, there must be something bad in it for us.
Aakash : This is where we display our herd mentality. Rather than understanding a situation, we follow the crowd. Only to know that the reality was exactly the opposite.
Sunil : So what should we do now ?
Aakash : Now you are asking the right question. When we have a investment plan, duly monitored by our advisor, we need not worry about these short term factors. Ultimately, we are concerned with whatever wealth we create, right ?
Sunil : So you mean to say, these global factors dont matter at all ?
Aakash : They do have some temporary impact due to sentiments. For example, after 9/11, there were many who thought that things are finished now and there will be no growth.
But our investments have grown more than 10 times from that time, because we kept investing.
Today, India is the fastest growing economy in the world, and thereby the favorite place for the world to invest. In a way, we can say that (to some extent) these turbulence should be seen as an opportunity than threats.
I am not saying that whether BREXIT will happen or not happen. I am also not saying that BREXIT wont affect the global economy.
All I am saying is, when it is outside the purview of our expertise and we have parked our investments with the expert, we should let the expert do his job and relax !!
Sunil : Thanks Aakash. I still dont understand too much of BREXIT. But now I know, how much I should be worried about it.
We look forward to your valuable comments and feedback.
The Author Prof. Saurabh Bajaj (BE, MBA, FRM, CFGP) is CEO with Nidhi Investments, Mumbai. He may be contacted on CEO@nidhiinvestments.com if you have any questions.
(The views mentioned in the article are personal opinion of the author)
Prof. Saurabh Bajaj is an Author, Mentor, Motivational Speaker and Wealth Planner.
He has done his MBA from Narsee Monjee Institute of Management Studies (NMIMS) Mumbai, one of the top 10 management institutes in India. He holds the prestigious FRM (Financial Risk Manager) degree awarded by Global Association of Risk Professionals (GARP), USA. Till date, there are less than 15,000 professionals in the world, who have been honored with this degree. He has also been awarded CFGP (Chartered Financial Goal Planner) Certification by AAFM (American Academy of Financial Management).
After his MBA, he joined J P Morgan, the second largest Investment Bank in the world. He has worked with J P Morgan as Risk Analyst for more than two years.
Prof. Bajaj also holds an Advisory certification awarded by AMFI (Association of Mutual Funds of India). During his stint at Bombay Stock Exchange, he has handled Investment Management and Treasury operations of the BSE Corpus. He has set up an entrepreneurship venture in the field of Wealth Planning and Investment Consulting under the name “Nidhi Investments” and holds the profile of CEO.
Prof. Bajaj sits on the Expert Panel of CAClubindia.com and MBAClubindia.com as Investment Expert.
He is actively involved in investor education through his blog www.professorbajaj.com which has a readership from 78 Countries all over the world. His articles are also regularly published in caclubindia.com , mbaclubindia.com , totalca.com , charteredclub.com, bankbazaar.com and lawyersclubindia.com .
He has been awarded the title of “Best Article Writer” from caclubIndia.com in Jan 2012 and has been selected amongst “Top 5 Technical Writers” from all over India in Feb 2013.
He has been invited by various TV Channels like SPIN TV, CNBC TV18, UTV Bloomberg Etc for programs like "Expert Advice" , "What Markets Want ", "Budget Analysis" etc.
He has been invited by Several organisations like Lions Club, Rotary Club, Agrawal Welfare Foundation, Rajasthan Mandal, Agroha Vikas Trust, Union MF, UTI MF, Arthamitra Gurukulam, Vidyalankar Institute of Technology etc for expert lecture on "Smart Investing", "Life is A Celebration", "Financial Freedom", "The Digital IFA" etc.
He was ranked 8th Merit at All India level NMAT which got him selected for MBA programme at NMIMS, Mumbai. He did his MBA with Capital Markets as his specialisation.
Soft Skills has become an inevitable part of every selection process and teaching learning process these days. The students from small towns and tier II cities, in spite of being talented and well equipped with technical skills, are seen struggling in the selection process. This is because of their lack of exposure to these soft skills. Mr. Bajaj has a zeal for training candidates to develop these skills and has been imparting the same on since last two years. This zeal and passion inspired him to set up his own firm called “Knowledge Circle” which aims to train candidates for soft skills.
Till date, he has trained more than 5000 participants from over 220 organizations across various fields of soft skills.
He has been associated with MSBTE (Maharashtra State Board of Technical Education) to conduct Soft skills training workshop for the faculties of Polytechnic Colleges in Entire Maharashtra (Mumbai Region, Pune Region, Aurangabad Region and Nagpur Region) since last 8 years.
He has also been associated with ICAI (Institute of Chartered Accountants of India) for training CA Students on various topics related to Communications skills, Group Discussions etc.
He was invited by Fr. Agnel Polytechnic College, Vashi for a motivational workshop for faculties. He was also invited by Vivekanad Polytechnic College for "Communication Skills and Email Etiquette" training for non-teaching staff.
Apart from these, he has conducted “Capacity Building Soft Skills workshop for Faculties” at ITI Gunj, ITI Pusad, ITI Digras and ITI Umarkhed. This was the first ever soft skills workshop for faculties in the history of ITI’s in Vidarbha. He was also invited by Shivaji Education Society to conduct similar Soft skills workshops for the faculties and office staff of Shivaji Junior College Pusad, Shivaji High School Pusad, Shivaji Vidyalaya Belora and Shivaji Vidyalaya Bhojla.
He has conducted training workshop on “Effective Presentation Skills” for the relationship managers of HDFC Mutual Fund, Andheri Branch, Mumbai.
He has also been invited at College of Management and Computer Science, Yavatmal, College of Dairy Technology, Warud, B N College of Engineering, Pusad, B D College of Engineering, Wardha, College of Engineering and Technology, Akola, Dr.N.P.Hirani Institute of Polytechnic, Pusad etc. for the Guest lecture on “Developing Interview Skills”.
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2 thoughts on “BREXIT : How Does it impact my Investments ?”
So Basically, we are saying that Brexit has no impact on India or my investments ?
I will answer this in 2 parts.
First Part, there will be an impact of a short term nature, which could be volatility in the market. This could be due to the immediate perception of the market.
Second part, in the long term, the “impact” (if at all) will be positive because when you have a look at the global economy, India remains the best place to invest for FIIs. For you and me, India is a by default destination and we evaluate products to invest. But for an investor outside India (to whom India is one of the options), it is still profitable to invest here.
Looking at this, BREXIT , GREXIT or any such phenomenon can have either no impact or a positive impact on Indian economy. So if you are invested, you are bound to create wealth.
Thanks for your visit and feedback. Looking forward to more in future.