Friday, March 24, 2017

Dohanomics - Investing Lessons made Easy

Living in the sphere where every folk, from low class to the luxurious class, desires to multiply his income, the need for the right guidance is the most sought path. Understanding all the theories, quoted by the professionals and experts, is similar to deciphering the enigma for the layman. And it isn't an option to be considered, especially when it concerns their money. Hence, acquiring the professional help and trusting them blindly was the only course of action that the investor pursued. Well, not anymore!

Realizing the need of the hour, Vinayak Sapre came up with the idea of compiling the book Р'Dohanomics'. This book is capable of educating the investing lessons to any novice. It is not one of those ordinary clich̩ investing books, that talk about the same old concepts. The distinctive characteristic of this book is that it provides the basis of learning for today's financial affairs with the help of ancient and time-tested couplets by Kabir and Rahim. Fascinating, isn't it? With the most unique concept, Vinayak Sapre has made his appearance in many prestigious newspapers like Hindustan Times and The Times of India.

Vinayak Sapre is a financial advisor and has been in the financial industry for more than a decade. He has completed his Master of Business Administration and has mentored many financial advisors too. When asked about the problems with the investors in our country, he answered 'According to me, it is basically due to lack of financial literacy. And I always make sure to educate my clients first and then proceed further with the investment plans.'

1. How did you come up with the idea of integrating the learnings of Sant Kabir and Rahim with that of today's financial era and compiling a book on it? Can you give us a brief example of preachings of the couplets by 'Sant Kabir and Rahim' in context to the financial market?

Vinayak Sapre: The idea of sant Kabir and Rahim came into my mind after seeing so many presentations, in which we have quoted the whole industry solely with the foreign experts. And somewhere I have realized, that the Indian investors and advisors find it very difficult to associate themselves with these foreign experts. This forced me to think that if there are so many skilled pundits in India, there has to be some kind of preaching by them which can be used in and is relevant to today's financial market, which can be easily apprehended by common people. In context to this, the two names that I found most suitable are Kabir and Rahim. Because, they are both non-controversial and respect each other's religion, in fact, Kabir never believed in religion. Also, both of them are equally loved among Hindus as well as Muslims.

Talking about the examples of preaching by Kabir and Rahim. There is one couplet of Kabir:
Mod moday hari mile, harkoi lev modaye 
Baar baar ke mod se, bhed na vaikunth jaye.” 

It talks about the herd mentality in the market. Kabir says that if you could have secured your place in heaven by sacrificing your hair, then sheep would have been the first to dwell in heaven. Similarly, when you are making an investment, you are not suppose to imitate your friends or neighbours. You should invest as per your goal and need.

2. Having completed your Masters with the specialization in Sales and Marketing department, what motivated you to take a shift in the Finance sector?

Vinayak Sapre: Well, it just happened by accident, as I was into some other job. And because of a friend, who was doing well in financial industry and also wanted me to join in. Due to some mishap, I lost my job. After which he got me into Kothari Pioneer mutual fund. And that's how, I came into mutual fund and since then I have been enjoying the life.

3. Our finance minister, Arun Jaitley, claims that the Budget 2017-18 has been prepared with regards to promote higher investments. What are your views regarding the same?

Vinayak Sapre: Well, Budget definitely looks promising but instead of commenting on the budget, I would suggest that people should look at their own household budget. We need to have a ballpark figure when we are preparing our budget. We need to focus on our own incomes, expenses and expenses. Reason being, there is a vast difference between our budget and Union budget.

4. What is the biggest challenge that you face while explaining the basics of investing sutras to the novice investors? Also, according to you, what is the problem with majority of the investors in our country. Is it the lack of information or the greed to obtain higher returns without patience?

Vinayak Sapre: What has happened in our society specially in the last 20-25 years post liberalisation of economy is that the spending pattern of the society has changed a lot. Be it in smaller towns or in bigger places like Mumbai, Delhi or any other metro cities, things are available very easily on EMI and credit cards. People are not aware about the important aspect, force retirement, which is happening in private sector. Due to which people will have much longer post-retirement life. There is an additional expense called Lifestyle expense, which was not there probably 20-30 year back in the life of our parents. And despite of the dramatic increase in the lifestyle expense, people are actually ignoring it.

Not only the greed but lack of information leads to the greed. People who come to invest generally come with the idea, that they want to make a lot of money in quick time. This according to me is basically due to lack of financial literacy. And I always make sure to educate my clients first and then proceed further with the investment plans.

5. What is the one advice that you always give to your clients without failing, may it be a nascent investor or a professional one?

Vinayak Sapre: I think the mantra of the successful investing is truly explained by the Kabir's saying,
Dheere dheere rehmana, Dheere sab kuch hoy,
Maali soche sau ghada, Ritu aaye fal hoye.”

It states that one needs to be very disciplined and patient while investing. And if you are looking at goal-oriented investing, it only makes sense to remain disciplined and have lot of patience as an investor.