Firstly, happy birthday me 🙂 I turn 35 this month, a landmark year for myself given that I am into numbers/ landmarks/ events etc. (no dont think of Subodh-Dil Chahta Hai! I am not him. lmao). Anyway 35 is important to me. I typify it with middle-age, and also the beginning of second innings of my life.
But because this is going to be a sad post financially (yet again!), I will start with something encouraging; a look at my financial future assuming all things remain constant from here on –
This is a tentative look at how my net-worth shall progress, if I do-
- no further new investments
- start eating my capital for annual expenses, and at 5% inflation y-on-y basis
- draw a modest 9% return on my capital!
cool isn’t it? It means I could retire right away, live a lavish life henceforth and still leave my son a hefty legacy if I die at 80 in 2063! That will be 180cr then (@5% inflation, its PV is 20cr.) I suddenly feel so upbeat about my finances ! haha. I can begin the sad post with poise now…
Firstly the markets. NIFTY was down by -6.39% indicating a possible bear run in the market. Even though it is alarming; I am not overly loosing sleep yet because (a) have enough cushion in form of debt-holdings (b) I see it as a minor blip in the large scheme of things, i.e., 10-15 year horizon.
Still the numbers speak of misery imposed. My portfolio went down by -3.76%. While it may not ring alarm bells – the absolute figure does, -53lac! Honestly, if/when I am really looking at a market-linked portfolio size of 25-cr as the dream is; a monthly alpha of 1cr will be mind-boggling!
So the market vis-a-vis portfolio looked like below –
While the overall breakup was as below –
|Mutual Funds (E):||₹3,34,29,780|
|Mutual Funds (D):||₹4,86,00,787|
*Equity: Debt ratio is supposed to be 40:60 under ideal circumstances. However due to fall in equity markets; the percentage breakup looks skewed. I hope it shall correct by itself in due course.
Lessons from September?
- Do not indulge too much in trading. pff. Still have an open position in RIL 25OCT FUT, and given the volatility; it is expected to give more sleepless nights ahead…
- A bad advisor is a bad advisor. period. He cannot improve with passing time. reference: SMC advisor. (ps: this could be a life advise/ lesson too) Do not expect asses to turn into horses in due course just because they are working in the same line-of-work!
- Legacy. One must leave behind a certain measurable/large legacy for their next generation; especially when one could. Only investing in their education/ upbringing isn’t enough – again especially when you could. Will do a detailed post on it separately.
Thats it for the wrap up. I am looking for a few silent months especially during festivities upto Christmas. A mini-target is to stare at 15-cr by year-end; largely funded by new investments than any jackpots from the market.
As a closing comment (copied) –
The stock market dropping feels like when my wife gets angry. I know there’s a reason but I’m still completely clueless and I’ve heard if I spend money things will get better.