The Path to Creative Solutions

 

                                                 

                                                                        The Path to Creative Solutions

1) Fall in love with the problem. Understand the problem and commit to solving it in a flexible manner, rather than fixating on a particular way to solve it.

2) With falling yields in Debt Funds and Markets have reached a peak for the time being how do search for Alfa.

3) The normal way would be to look at other asset classes. That would be

 fixating on a particular way to solve the problem but we need to display flexibility

4) This is where the industry looked at processes that could add Alfa to the Returns

5) Thus, was born Asset Allocation and Rebalancing which initially 

was age based with say annual rebalancing

6) As Algorithms emerged, one saw the development of valuation-based Rebalancing in BAF category

7) This process became an Alfa generator

8) Now we have Booster STP which is again a great process to enhance performance

9) Can we now look at some other areas to increase Alfa

10) Say for instance restructuring your lifestyle

11) If without causing disruption and inconvenience one can enhance the overall wealth then why not step away from the process and move into the

 life style design of the client and tinker with it

12) For example, by restructuring the Client’s assets – Reducing Real Estate and Adding Liquidity, using services like Ola, Oyo, Swiggy and Service Apartments one can add efficiencies

13) For example, if one were to sell his house for Rs 1 cr. & Stay in the same house on rent at Rs 30K, an SIP of Rs 70K is generated

14) This is about 1.5 cr in 10 years which itself means 20 years lifestyle of Rs 1 lac per month

15) The idea is to break the walls, the barriers to our thinking and rediscover the undiscovered

Raja Bhattacharjee

investment.junctions@gmail.com

https://www.investmentjunctions.com/