Wealth Preservation

The Do-s and Don’t-s of Wealth Preservation

In the world of finance, where markets can shift unpredictably and economic conditions fluctuate, the art of wealth preservation stands as a cornerstone of financial success. Whether you’re commencing your investment journey or are a seasoned player, safeguarding your wealth against market volatility and economic uncertainties is paramount.

Here are the indispensable do’s and don’ts of wealth preservation, combined with insights from KSL.

The Do’s:

Do's of wealth preservation

1. Embrace Diversification:

Spread your investments across various asset classes, industries, and geographical regions. Diversification is the bedrock of risk management, shielding your portfolio from the adverse impact of market swings in any area.

2. Regular Portfolio Checkups:

Conduct routine evaluations of your investment portfolio. Assess its performance, align it with your risk tolerance, and ensure it remains in sync with your financial objectives. Adjust asset allocations as necessary to stay resilient in changing market environments.

3. Prioritize Risk Mitigation:

Understand the risks inherent in each investment and implement strategies to manage them effectively. Whether it’s through the use of stop-loss orders, hedging techniques, or maintaining liquidity reserves, prioritize safeguarding your capital against unforeseen events.

4. Foster Long-Term Vision:

Focus on investments with robust fundamentals and long-term growth potential. Avoid reacting impulsively to short-term market fluctuations, and instead, adhere to a disciplined investment approach that emphasizes patience and perseverance.

5. Stay Informed and Educated:

Keep abreast of economic trends, market developments, and regulatory changes. Continuous learning and staying informed empower you to make informed decisions and adapt your investment strategy to evolving market conditions.

The Don’ts:

Don'ts of wealth preservation

1. Resist Panic Selling:

Avoid succumbing to fear-driven decisions during market downturns. Selling investments hastily often locks in losses and undermines long-term wealth accumulation. Maintain a calm and rational perspective, focusing on the long-term fundamentals of your investments.

2. Steer Clear of Speculative Ventures:

Exercise caution when tempted by speculative investments or hot tips promising quick riches. Instead, adhere to a disciplined investment approach grounded in thorough research, prudent risk management, and a long-term perspective.

3. Neglect Estate Planning:

Don’t overlook the importance of estate planning in preserving your wealth for future generations. Take proactive steps to structure your assets, minimize tax liabilities, and ensure a smooth transfer of wealth according to your wishes.

4. Optimize Tax Efficiency:

Be mindful of the tax implications of your investment decisions. Explore tax-efficient investment strategies and leverage available tax-advantaged accounts to maximize your after-tax returns while remaining compliant with tax laws.

5. Seek Professional Guidance:

While self-directed investing can be empowering, don’t underestimate the value of professional advice. Engage with experienced financial advisors like those at KSL to benefit from their expertise, tailored recommendations, and objective perspective on your financial goals.

In essence, wealth preservation is not merely about accumulating riches but also about safeguarding and nurturing them over time. By adhering to these essential guidelines, you can walk through the complexities of the financial markets with confidence and resilience, ensuring a secure and prosperous financial future for yourself and your loved ones. Remember, prudent decisions today pave the way for enduring financial well-being tomorrow.

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Investor Awareness

1. Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020.

2. Update your mobile number & email Id with your stock broker/depository participant and receive OTP directly from depository on your email id and/or mobile number to create pledge.

3. Pay 20% upfront margin of the transaction value to trade in cash market segment.

4. Investors may please refer to the Exchange’s Frequently Asked Questions (FAQs) issued vide BSE notice no. 20200731-7 dated July 31, 2020 and 20200831-45 dated August 31, 2020 and NSE circular no. NSE/INSP/45191 dated July 31, 2020 and NSE/INSP/45534 dated August 31, 2020 other guidelines issued from time to time in this regard.

5. Check your Securities /MF/ Bonds in the consolidated account statement issued by NSDL/CDSL every month.

Attention Investors

Prevent Unauthorized Transactions in your trading and/or demat account – Update your
Mobile Number and / or email IDs with your Stock Broker and / or Depository Participant. Receive alerts on your Registered Mobile for all debit and other important transactions in your demat account directly from CDSL on the same day / information of your transactions directly from Exchange on your mobile/email at the end of the day………………….issued in the interest of investors.

“KYC is one time exercise while dealing in securities markets – once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary.”

No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor’s account.”