Thursday 30 January 2020

The Importance of the Union Budget 2020?



In accordance with the Constitution of India’s Article 112, it is necessary to present a budget before the House of Parliament and get it approved before the beginning of every financial year.
The word “budget” is derived from the French word “Bougette” which means “Small Bag”. It is adopted from the British, who used to carry a budget box since the 1880’s. The first Indian finance Minister who carried the briefcase was RK Shanmukham Chetty in his first budget speech in 1947.
Budgeting is the process of creating a plan to spend your money. Creating a spending plan allows you to determine in advance whether you will have enough money to do the things you need to do or would like to do. Budgeting is simply balancing your expenses with your income.
The Union Budget contains details about the projected receivables and payables of the government for a particular fiscal year. The budget statement is divided into two major parts—capital budget and revenue budget.
The Government presents three types of budgets; balanced budget, surplus budget and deficit budget.
Mentioned below are brief explanations and the advantages and disadvantages of these three types of budgets:

The presentation of the Budget document on 1st Feb is one of the most awaited economic events wherein the Government will roll out its priorities and income and expenditure plans.
Through the budget, government lays out the sources where the government is going to generate income and the sectors where it is going to spend and apply the income.
The budget also translates the focus of the government, whether it is on growth or inflation control, whether the priority is welfare schemes and populist measures or more economically viable projects, whether the disinvestment roadmap will lead to Government leaving control by exiting more businesses and what steps the government proposes to boost investment, both private and public, consumption and exports, the main drivers of any economy.
The Budget is used by the government for
  1. A) Creating a plan to earn and spend the money.
  2. B) Control income and expenditure. (the traditional use)
  3. C) Establish priorities and set targets in numerical terms.
  4. D) Provide direction and co-ordination, so that economic objectives can be turned into practical reality.
  5. E) Allocate resources and
  6. F) Assign responsibilities to budget holders.
Over the years the budget day has been losing its relevance to a large extent. With the introduction of GST, changes in indirect taxation can now be made without any reference to the Union Budget. Changes can be made at any point in the monthly GST Council meetings and as the GST system settles down, the frequency of changes will reduce substantially as we move towards just 3-4 tax slabs.
As for Direct taxes, small tinkering here or there may be done, which neither has a substantial impact on revenue nor on the taxpayers’ pocket. Increasingly the government realises that, it needs to increase compliance, rather than make abrupt changes in policy, in tax rates or in allowances and exemptions. For the Tax to GDP ratio to improve and come at par with the other comparative economies, the number of taxpayers needs to increase much more than the tax rates.
Even more than the budget, the document to look forward preceding the budget is the Economic Survey. This document spells out the broad economic outlook and reviews the developments in the Indian economy over the previous 12 months; it summarizes the performance on major development programs and highlights the policy initiatives of the government and the prospects of the economy in the short to medium term.
The Budget proposal apart from impacting the business sentiment, has a direct bearing on businesses as firstly the proposed fiscal deficit has a direct bearing on Interest rates and secondly the Government spending priorities impact different sectors due to the multiplier effect and the spending and investment which Government undertakes in those sectors.
The budget is nothing more and nothing less.
However, as the study of data proves, the stock market is becoming quite indifferent to this annual exercise. In fact, the Budget has not been a material event for stocks, for the past 10 years or so.
An analysis of the Sensex movement on and around the Budget day, since 2000, shows changes in the market benchmark have been muted and of late there has been no euphoric pre-Budget rallies.
There is no clear trend in the Sensex movement a month after the Budget day. From 2000 to 2018, it made gains on eight occasions, recorded losses nine times and closed on a flat note twice.
The Modi government has so far presented six union budgets since they took over in May 2014 and the Sensex has delivered negative returns in four out of six such occasions, on the day of the budget.
When the BJP-led government presented the full budget for the year 2014-15 on July 10, 2014, the Sensex fell 72 points on the day of the budget.

This could be due to various policy announcements made outside the Budget, the GST limiting any action on indirect taxes, increasing apathy towards Government concessions in direct taxes by the taxpayer and increasing role of market regulators like SEBI and RBI on stock prices, is bringing down the relevance of the annual exercise for the equity market.
In any case, we feel the budget day is for traders and not for investors. The long-term investor should stick to his strategy and not look at trading the volatility of the Budget day.
In the current scenario,maintaining fiscal balance while achieving higher growth is a tricky challenge and it would require a perfect mix of fiscal and monetary measures to drive the economy towards higher growth.
As Ms Sitharaman steps up to present her second budget, she faces major challenges. GDP growth has recorded the lowest level in the last 11 years, Investments have slowed to the lowest level in 17 years, Manufacturing is at its lowest level in 15 years and private consumption is lowest in 7 years. Inflation in the last 12 months has jumped from 1.97% to 7.35 % which leaves the RBI with very less flexibility to change rates. Tax collections are subdued, disinvestment targets are not being met, fiscal deficit is likely to overshoot targets and business sentiment is at an all time low. Not many will be envious of the lady as she presents her budget.
The positive seems to be the visible green shoots and the bottoming out of the economy; after all, how lower can we go.
To be fair to the Government, they have been making valiant attempts and policy corrections since the last two quarters, starting from the Corporate tax cuts.
The key questions which need answers in this budget are:
1) Do we continue with the same economic model or adopt a new Model to face the challenges, reverse the acute growth slowdown and achieve the potential.
2) How do we invite Capital to boost the much-needed investment of an estimated $ 1.4 Trillion over the next 5 years in the much-needed Infrastructure alone?
Will the Government Debt and corporate Debt Market be deregulated and opened for foreign investors, pension funds, insurance companies and retail investors?
3) What can be done to boost consumption; does it require a boost in rural income or provide higher disposable income for the urban consumer or increase liquidity for a credit led growth?
4) Will the Exports remain stagnant or can we make structural changes in our export strategy? No country has grown by double digits by consumption alone.
5) How can the consumer and Investment sentiment be improved? By giving concessions, reducing taxes, rationalizing compliances for small businesses or much more.
6) How can the jobless growth be changed, and employment given a boost to meet the requirements of current population. How can MSMEs and manufacturing be revived to provide the impetus to job creation.
7) Can the much-awaited bold reforms in Land and labour be unleashed in this budget?
8) Will the government finally have the courage to get out of business and privatize the non-strategic and non-core businesses it is involved in?
9) How to increase productivity and efficiency to world standards so as to optimize the use of limited resources.
10) What steps will be taken to upwardly shift the growth trajectory from the current 4-5% to double-digit growth?
In a similar situation in the past, Finance ministers have risen to the occasion and made bold reforms and reversed the tide. Out of the box thinking is required to show intent, tap resources, improve sentiment and develop new models for investment and growth.
The macros are benign and favourable, trade wars have subsided, and the world awaits the Indian Budget for the much-needed radical reforms to take India to the $ 5 Trillion economy by 2025. It is not going to happen by mere tinkering of rules and rates. The FM will have to make the budget count, not by Policy Intention but by course correction, bold structural reforms and policy intervention.
As we await the answers to the above, we need to understand;
Is the Budget after all, only just another event in the financial calendar?
The importance of the Union Budget has never been more relevant than the budget of 2020.
Happy Investing!
Sandeep Sahni

Note: All information provided in this blog is for educational purposes only and does not constitute any professional advice or service. Readers are requested to consult a financial advisor before investing as investments are subject to Market Risks.
About The author
Sandeep Sahni
Sandeep is an alum of IIM Lucknow with a Post Graduate Degree (MBA class of 1988). His also an alum of Shri Ram College of Commerce, Delhi University (B.Com. Hons. Class of 1985.)
Sandeep's investing experience and study of the Financial Markets spans over 30 years. He is based in Chandigarh and has been advising more than 500 clients across the globe on Financial Planning and Wealth Management.
He has promoted “Sahayak Gurukul” which is an attempt to share thoughts and knowledge on aspects related to Personal Finance and Wealth Management. Sahayak Gurukul provides financial insights into the markets, economy and Investments. Whether you are new to the personal finance domain or a professional looking to make your money work for you, the Sahayak Gurukul blogs and workshops are curated to demystify investing, simplify complex personal finance topics and help investors make better decisions about their money.

Alongside, Sandeep conducts regular Investor Awareness Programs and workshops for Training of Mutual Fund Distributors, and workshops and seminars on Financial Planning for Corporate groups, Teachers, Doctors and Other professionals.

Through his interactions and workshops, Sandeep works towards breaking the myths and illusions about money and finance.He also writes a well-read blog; : https://sahayakgurukul.blogspot.com https://www.sahayakassociates.in/resources/our-blog
He has also conducted presentations, workshops and guest lectures at Management institutes for students on Financial Planning and Wealth Creation. He can be reached at:
91-9888220088, 9814112988
 Follow us on:

Blog Comment Policy
Your thoughts are vital to the health of this blog and are the driving force behind the analysis and calculators that you see here. We welcome criticism and differing opinions. We will do our very best to respond to all comments ASAP. Please do not include hyperlinks or email ids in the comment body. Such comments will be moderated and we reserve the right to delete the entire comment or remove the links before approving them.
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Tuesday 21 January 2020

The lost decade….



The teens were supposed to belong to the emerging markets and BRICS, especially to India.
The sixties and seventies of the last century belonged to the USA, the eighties to Japan, End nineties and the first decade of the current centurybelonged to China and the teens were to be India’s decade.
But alas, India has faltered in the last decade, the momentum seems to have been lost. When India’s economic history is written at some future date and when a serious examination is undertaken, of when exactly India lost its way with its tryst with destiny, the decade of 2010-20 will be highlighted.

The impact of poor growth on the stock market was clearly evident and the Indian stock Markets delivered the worst returns for the decade. The decade truly belonged to the US and the Nasdaq gave the best returns.

The facts speak for themselves. India’s real GDP growth was at its peak in March 2010 when it scaled 13.3%. The nominal GDP at that point was over 16.1%. In comparison, the nominal GDP in September 2019 was at 6.3%, its lowest in the decade. Since then, the downward trend is evident and we are now nearing a bottom at about a real GDP growth rate of 4.5%.
This has happened in a period when the world GDP has done better than expected and the interest rates, have come crashing across the world in the last two decades. We have not been able to take advantage of the abundant and cheap Capital available, which India is in urgent need of.

f you just compare India’s GDP and Per capita GDP with China, it becomes clear that India missed out in the teens. In 2000, China’s GDP was two and half times India, in 2010 it was three and a half times and at the start of 2020, it is more than five times. Similarly, China’s Per capita income was twice India in 2000, it was three and a half times in 2010 and at the start of 2020, it is more than four and a half times.
China achieved $ 1 Trillion GDP in 1998 and India achieved it nine years later in 2007 but thereon China just galloped to take its economy five times in the next ten years and ten times in the next twenty years and India grew six times in the same period.

The India growth story definitely has slackened and the gap between India and China has only widened. The reason why growth is important for a country like India is mainly due to the fact that the only way we can bring our hundreds of millions of people out of poverty and give them the basic amenities and a decent standard of living is only by achieving high growth levels. The aspirations of the teeming youth and the demographic dividend can also be reaped, only by a double-digit growth or else it will result in social unrest and other problems.

The decline in the promise is amply evident by the change in the composition of the economy during this decade. In 2010, agriculture contributed 17.5% of GDP, while industry contributed 30.2% and services 45.4%. In 2019, agriculture fell to 15.6%, industry to 26.5% and services increased to 48.5%. The share of industry has been sliding. This is the typical profile of a post-industrial economy. The irony of India becoming post-industrial without having industrialised  cannot be missed. Another irony is that 60% of our population still continues to be engaged in agriculture and related activities.
The savings/GDP ratio has been in a declining trend since 2011 and Prime Minister Modi has been unable to reverse it. Consequently the tax/GDP ratio and the investment/GDP ratio have also been declining. The drivers of economic growth such as capital expenditure are dismal. Projects funded by banks have declined by over half since 2014 to less than Rs.600 billion in 2018-19. Projects funded by the market have dropped to rock bottom. Subsequently the manufacturing/GDP ratio is now at 15%. Corporate profits/GDP ratio is now at a 15-year low at about 2.7% almost half of what it was at the start of the decade.

The decline began in the early years of the decade when capital expenditure growth began tapering off mainly due to anti-corruption crusade, rise of the green brigade and the increasing assertion of populist tendencies by the government at the cost of the much needed investment in infrastructure. The decline in the share of capital expenditure was accompanied by a huge expansion in unmerited subsidies. Instead of an increase in expenditure on much needed education and healthcare, there was a huge expansion in subsidies to the middle and upper classes like on LPG and motor fuels. Even fertiliser subsidies, which mainly flow to middle and large farmers with irrigated farmlands, saw a great upward leap and the money for this came at the cost of reduction in capital expenditure.

The change of government did not change or reverse the trend, and only inflicted more hardship by demonetisation and ill timed rollout of the Goods and Services Tax. Stricter tax compliance norms, The bankruptcy code and the impact of headline news of NPAs on industry, RERA, emphasis on environment, and its impact on certain industries, the strict actions by the Central enforcement agencies against erring businesspersons and government officials  ala Mallya, Bhushans, Unitech, Sahara,Chanda Kochar, etc also affected the market sentiment adversely.

The situation came to such a pass that the Businessmen were not willing to borrow and bankers were not willing to lend. Credit offtake and both corporate and retail lending fell sharply, leading to decline in both investment and  consumption spend.Inflation targeting and focus on fiscal deficit ensured that Government spending was also muted, Geo political factors and trade wars ensured that exports could not grow. The government’s protectionist stance and non-participation in major trade agreements like RCEP have also not helped.

Gloom surrounds the start of the 20s. The euphoria of the 2000s has been replaced by  disappointment as the 2010s ended. This is not just a cyclical downswing.
India could have achieved what economists call a 'take-off' (rapid and self-sustained GDP growth) but has lost the momentum.

Something deeper has gone seriously wrong, something more structural, a deeper malaise which needs to be corrected. Was the disruption solely political or did the businesses not anticipate the change?In the 2010s, each time the country's economy came close to returning
to previous growth trajectory, political events have knocked it off course.

Did we grow too fast and our systems didn’t keep pace because the reforms process gave way to populist measures?
It took our GDP 60 years to touch the first trillion and in the next ten years alone, we added another two trillion and we now want to double that in the next five years.
Is it possible with our present outdated judicial system which is largely a British legacy or the current labour and land laws?

In the 1990s, India gradually dismantled a very uncompetitive industrial structure created during decades of protection behind high tariff walls. This paid off in the 2000s. India soared to world-class in three main sectors — IT, pharmaceuticals and auto.

Software companies like TCS, Infosys, Wipro and Cognizant became worldleaders. Reliance became a global giant in oil refining and petrochemicals. Bajaj Auto and Hero Honda re-invented itself as world-class motorcycle producers. Maruti grew to a size bigger than its parent and brought about a small car revolution.The automobile sector became a global hub for not just the production of small cars but even R&D. Auto ancillaries started supplying to all the leading manufacturers of the world. Drug companies like Sun Pharma, Dr Reddy’s Labs and Lupin become major global suppliers of generic drugs.

Alas, not a single new world-class sector has come up in India in the 2010s. Albeit, many top corporates, including new post-liberalisation stars like Essar, Ranbaxy, Zee, Jaypee, Bhushan, Videocon, Jet Airways, Anil Ambani and several infrastructure companies have crashed.
The only new giants have come up in the teens are the “unicorns” (unlisted companies worth a billion dollars) such as Flipkart, Ola Cabs, MakeMyTrip, Byju, Paytm, Swiggy etc . The sad part is that they all are are imitators of Western e-commerce models and lack the technological innovation of China’s Huawei, Alibaba or BYD.

Most Indian unicorns are loss making and are majorly owned by foreign investors. They don’t seem to have what it takes,and India cannot expect them to catapult the country into the next level and make India a global force.

Why can’t our top corporates in the manufacturing, financial services, hospitality, FMCG etc. become world leaders and the cherished brands of the world. The Indian corporate giants are content to remain within the shores and don’t seem to be focused on the much-needed innovation and R&D. Where is our own “Apple”, or Google or Microsoft or Facebook or Adobe? Why can’t our telecom giants do some integration and create their own Oppo or 1 Plus or Samsung given the volumes and huge subscriber base that they have.

Make in India doesn’t seem to be working, can we graduate to “Innovate in India?”When you are short of capital, the best way for growth is to raise productivity, make better use of available resources and do more value addition.

We have the brain and the resources; can we channelize it and give it a platform to raise the bar.
Much more needs to be done if we need to tap the potential that exists and bridge the gap between the potential and real growth.

The government has to make Economic recovery and growth its highest priority because politics can wait but the economy cannot.

Ease of business has to improve not only in rankings but in spirit and down the line of control.
Sentiment has to be conducive for investment, investor has to be assured of continuity in policy and that contracts will be enforced and will not change midway due to change of state governments or heads of important ministries. The consumer has to be made to believe of a bright future ahead, not by talk but by deeds so that he is not afraid to dip into his savings and spend on not only necessities but discretionary and luxury items too.

The start of the new decade is the best time to make a new beginning. It doesn’t start with the government alone, the responsibility is not theirs alone, we all have to share the burden by changing the way we operate, we conduct our businesses and our lives.

The first change will have to be in ourselves, so that the ethos can change to one of continuous and responsible growth.
Let’s begin the change…..
Have a great decade ahead.
Happy Investing!
Sandeep Sahni


Note: All information provided in this blog is for educational purposes only and does not constitute any professional advice or service. Readers are requested to consult a financial advisor before investing as investments are subject to Market Risks.

(Read our next blog on “How the stock markets performed in the 2010s”)
About The author
Sandeep Sahni
Sandeep is an alum of IIM Lucknow with a Post Graduate Degree (MBA class of 1988). His also an alum of Shri Ram College of Commerce, Delhi University (B.Com. Hons. Class of 1985.)
Sandeep's investing experience and study of the Financial Markets spans over 30 years. He is based in Chandigarh and has been advising more than 500 clients across the globe on Financial Planning and Wealth Management.
He has promoted “Sahayak Gurukul” which is an attempt to share thoughts and knowledge on aspects related to Personal Finance and Wealth Management. Sahayak Gurukul provides financial insights into the markets, economy and Investments. Whether you are new to the personal finance domain or a professional looking to make your money work for you, the Sahayak Gurukul blogs and workshops are curated to demystify investing, simplify complex personal finance topics and help investors make better decisions about their money.

Alongside, Sandeep conducts regular Investor Awareness Programs and workshops for Training of Mutual Fund Distributors, and workshops and seminars on Financial Planning for Corporate groups, Teachers, Doctors and Other professionals.

Through his interactions and workshops, Sandeep works towards breaking the myths and illusions about money and finance.He also writes a well-read blog; : https://sahayakgurukul.blogspot.com https://www.sahayakassociates.in/resources/our-blog
He has also conducted presentations, workshops and guest lectures at Management institutes for students on Financial Planning and Wealth Creation. He can be reached at:
91-9888220088, 9814112988
Follow us on:


Blog Comment Policy
Your thoughts are vital to the health of this blog and are the driving force behind the analysis and calculators that you see here. We welcome criticism and differing opinions. We will do our very best to respond to all comments ASAP. Please do not include hyperlinks or email ids in the comment body. Such comments will be moderated and we reserve the right to delete the entire comment or remove the links before approving them.

Posted by at No comments:

Monday 13 January 2020

Financial lessons from Makar Sankranti !!

"Pher aa gayi Bhangre d vari
Lohri manaun di karo taiyari,
Agg de kol saare aao.
Sundariye Mundariya jor naal gao!!
 “Lohri is more than just a festival;
it is an expression of community togetherness, celebration of fertility and the joy of life.
Lohri holds more social significance than religious flavour.
Mark Twain said, “A year has 365 days, but India has 366 Festivals”
The concept of Universal Brotherhood encompasses all these festivals & the vibrant colors, warm hospitality & infectious buoyant spirit mark the celebration of our festivals.
Some festivals welcome the seasons of the year – the harvest, the rains etc, while others celebrate religious occasions, the birthdays of the divine beings, saints, & Gurus, or the full moon or the advent of the New Year.
Though most festivals have had religious origins, over the years they have acquired social & cultural significance. Every celebration centers around the rituals of prayer, seeking blessings, exchanging gifts and goodwill, decorating the house, wearing new clothes, music, dance & feasting.
Most of these occasions have a lot to teach us; they impart great financial lessons and tell us how we can learn and incorporate those lessons in our daily lives.
Makar Sankranti coincides with the day the Sun leaves the tropic of Cancer to move towards the tropic of Capricorn (called Makar in India).

Makara Sankranti is an auspicious day for Hindus, Even the mortally wounded Bhishma of Mahabharata, who had the boon to choose the time of his death, chose Makara Sankranti day to die.
It is a day of great jubilation for farmers as it marks the end of the biting winters and the beginning of the new harvesting season. This day is therefore celebrated as a Thanksgiving for ending the harsh winters and a bountiful harvest.

Makar Sankranti traditions:
In Maharashtra, the “Til Gul” ( a sweet made of sesame seeds and jaggery) are prepared in homes to mark the harvest of the first sugarcane crop of the year (out of which jaggery is made).

In Gujarat Makar Sankranti is referred to as Uttarayan, and kites are flown to wake the Gods from their winter slumber and bless their harvest.

In West Bengal this festival is referred to as “Poush Sankranti” is celebrated as a harvest festival where a variety of sweets such as Pithey, Puli, Patisapta are made with freshly harvested rice flour and jiggery made out of date palms.

In Uttar Pradesh it is believed that taking a holy dip in the Ganges on this day will provide “Moksha” or salvation from sins.

Makar Sankranti is referred to as Pongal in Tamil Nadu and other South Indian states, where it is celebrated as a three day festival which include a whole lot of festivities.

Sankranti has a philosophical significance in India as well. The word Sankranti literally means 'movement', and it is the day for the human race to realise and be thankful for movement. If there was to be no movement within and without our bodies, we would all be dead! But just like yin and yang in China, the concept of movement must be contrasted and appreciated against the stillness.
Therefore, when we fly kites in the lap of the still skies, it is a reiteration of our thankfulness for this very movement!
Indian traditions are also rooted deeply in science and so is the tradition of kite flying on Sankranti. When we fly kites on Sankranti, we expose ourselves to the rays of the Sun. On this day when the Sun begins its journey towards the other hemisphere, it is expected to be benevolent and emanate rays that have medicinal benefits.
Kites of different shapes, sizes, colours and texture vie in sky with each other to make a place for themselves and entangle in a pursuit to outdo the rest.
Like all festivals, Makar Sankranti also has some great financial lessons for us.
  1. Get set for a flight: Kite without proper “Kanni”
Life is akin to kite flying, where you need to customise a kite as per your abilities, have the perfect manjha or string and set it to flight to soar above the rest when the wind is in your favour. If you don’t take a proper kanni, it is like not setting any financial goal, not knowing which direction you need to go.
  1. The use of ‘manjha’ while flying kites ; Selection of proper thread.
A ‘manjha’ is an abrasive string which is not just gummed and coloured, but also coated with powdered glass. This string and its strength are quintessential in the friendly combats that ensue during the festival.
Similarly, when it comes to investment, there are many ways in which you can make an investment. However, for you to win the investment combat, it is important to choose the right asset class based on your current financial condition, risk taking ability and your financial goal.
Your financial success largely depends on your manjha.
  1. Decide on the size of your ‘Charakhri’ - quantity of thread
The next task is to decide how much thread will you need to reach your destination. You will also have to factor in the hiccups you are likely to encounter along the way.
This is something like deciding on the budget or the amount that you require to invest in lumpsum or SIPs to achieve your financial goals.
  1. Flying Kite in proper Direction.
You need to check the direction of wind and decide on which direction will you fly the kite so that it can soar high in the sky.
Similarly, you need to decide on the direction of your investment, the distance it needs to travel and the direction it needs to go to, so that all your goals can be achieved.
      5.Keep your eyes on your kite:
When you are flying a kite, you cannot for a moment be careless and lose sight of how or in which direction your kite is flying.
Similarly, in financial planning you have to be vigilant of the course that your investments are taking and review your investments to see that your financial goals both short term and long term are being met.
While kite-flying, a moment of distraction could mean a ‘katipatang’. Your investments are like your kite – you can control it; wind may cause disturbances but at the end you need to know how to make it soar. It is most important to continuously have an eye on your investments, to monitor and review your investment.
  1. Be flexible
While flying kites people shout out 'dheel de!' to their companions. It means when you are in the midst of a strong gust of wind you have to let go the string  and adapt to the situation.
Similarly, when it comes to an investment climate, things are not always perfect. You have to be patient and sometimes bear some temporary losses, but never lose sight of your vision of meeting your financial goals.
Deciding to give “dheel” or pull the Manjha is like deciding the strategy for your investment, when to be patient, when to add more, when to withdraw etc.
  1. Why does it take two people to fly one kite?
 Even one person can fly a kite!
In a typical Makar Sankranti scenery, there are children on terraces, with the number of children twice as much as the number of kites hovering. Typically, while one takes charge to maneuver the kite against gusty winds and other rival kites, the other child’s entire role is to ensure that he releases and retracts just the right amount of thread required for the kite to soar.
While one person can manage both, he can only fly a kite and not take it to higher horizons.
Similarly, an advisor’s job is to guide you through gusty winds. Your advisor and you are a team on a mission to make your investment kite touch new highs.
Now that you have the perspective and insight into the kite-festival, it is time for you to go out and conquer the skies!

Financial planning is not just about making a plan and keeping it static. You need to keep reviewing it. Armed with proper resources and research of the markets, you need to seize the opportunities that arise in the economic environment to enhance your portfolio

Celebrate Life. Any excuse to celebrate is good, the nature of the spirit is celebration. Let your body, mind and the spirit rejoice and get lost in festivity of this wonderful festival.

Keep investing and keep smiling, Celebrate life! That is the essence of Makar Sankranti.

Have a Great & profitable Investment year ahead!
Happy Investing!

Sandeep Sahni

Note: All information provided in this blog is for educational purposes only and does not constitute any professional advice or service. Readers are requested to consult a financial advisor before investing as investments are subject to Market Risks.
About The author
Sandeep Sahni
Sandeep is an alum of IIM Lucknow with a Post Graduate Degree (MBA class of 1988). His also an alum of Shri Ram College of Commerce, Delhi University (B.Com. Hons. Class of 1985.)
Sandeep's investing experience and study of the Financial Markets spans over 30 years. He is based in Chandigarh and has been advising more than 500 clients across the globe on Financial Planning and Wealth Management.
He has promoted “Sahayak Gurukul” which is an attempt to share thoughts and knowledge on aspects related to Personal Finance and Wealth Management. Sahayak Gurukul provides financial insights into the markets, economy and Investments. Whether you are new to the personal finance domain or a professional looking to make your money work for you, the Sahayak Gurukul blogs and workshops are curated to demystify investing, simplify complex personal finance topics and help investors make better decisions about their money.

Alongside, Sandeep conducts regular Investor Awareness Programs and workshops for Training of Mutual Fund Distributors, and workshops and seminars on Financial Planning for Corporate groups, Teachers, Doctors and Other professionals.

Through his interactions and workshops, Sandeep works towards breaking the myths and illusions about money and finance.He also writes a well-read blog;
He has also conducted presentations, workshops and guest lectures at Management institutes for students on Financial Planning and Wealth Creation. He can be reached at:
91-9888220088, 9814112988
Follow us on:
Blog Comment Policy

Your thoughts are vital to the health of this blog and are the driving force behind the analysis and calculators that you see here. We welcome criticism and differing opinions. We will do our very best to respond to all comments ASAP. Please do not include hyperlinks or email ids in the comment body. Such comments will be moderated and we reserve the right to delete the entire comment or remove the links before approving them.

Posted by at 1 comment:

Friday 10 January 2020

2019 - The Year that was


As we approach the end of the year and the dawn of the New Year, the number crunching starts.  Specifically, as the calendar year ends, we download raw data and try to decipher trends and patterns in the data. With the end of 2019 and the start of the new decade, let’sstartby reviewing the year gone by and the major learnings from the past year.

Despite all the talk and anguish about trade wars, geopolitics and a sputtering and overly indebted global economy, 2019 was one of the best year investors have ever had.  Global stocks have increased by more than $10 trillion, bonds have been on fire, oil has surged almost 25 percent, former crisis spots Greece and Ukraine have top-performed, metals are on a comeback trail and even gold has outshone to cross $ 1500 an ounce.

Wall Street and MSCI's near 50-country world index have both touched record highs with 30 percent and 24 percent growth. Europe, Japan, China and Brazil are all up, at least 20 percent and that too in dollar terms.

Technology companies and the FAANG stocks (Facebook, Amazon, Apple, Netflix, and Google's parent, Alphabet, which make up the so-called FAANG stocks)have remained the top performers. Apple may just have lost its crown as world's most valuable firm tag to the Saudi new listing, Aramco, but it was still up 77 percent in 2019.

Facebook surged 57 percent, Microsoft 53 percent, Google 30 percent, Netflix 24 percent and Amazon 19 percent. China's tech sector also went up with a 64 percent rally and online giant Alibabawas up 53 percent. The Indian tech sector performance totally pales in comparison.

In the Indian context, 2019 was a year of contrasts in many ways. While the economy slowed down sharply, equity markets did well as the Nifty and the Sensex delivered double digit growth. Yet within equities, broader markets didn’t do well with the Nifty Midcap 100 and the Nifty Smallcap 100 indices losing. Similar was the story in debt markets, even with a 135-bps cut in policy rates by the RBI, rate transmission did not happen. Term premium stayed elevated until the RBI intervened with ‘Operation Twist’, whereby RBI bought long-dated securities and sold short-dated securities. Overall, while g-sec funds did well thanks to an 81bps decline in 10-year yields, credit spreads stay elevated.

Till December 27, the NIFTY 50 had gained 13.47 per cent for the calendar year. However, the broader market continued to bleed and the NIFTY Mid-cap index corrected by 3.82 per cent. The NIFTY Small-Cap index fared worse and slipped 11.38 per cent for the year. The NIFTY 500 TRI was however up by 9.15%. The sectoral indices, i.e. Nifty Auto, Pharma & FMCG were all down except Nifty Bank which is up 19.27 per cent.


Most analysts are calling this dichotomy in Indian markets a “Narrow Bull & Broader Bear Market.”The top 10 Nifty stocks contributed to the entire gains of Nifty in 2019. 24 Stocks in the Nifty 50 delivered negative returns.


In 2019, world economic growth (at market exchange rates) slowed to 2.5 per cent, essentially because of a slowdown in three big economies. The growth of the $21-trillion US economy slowed to 2.4 per cent, that of $19-trillion European Union (EU) to 1.5 per cent and $14-trillion China to 6.1 per cent. Together, these “big 3” account for over 60 per cent of world GDP. Amongst others, the major causes of the slowdown  are the waning of the tax-cut stimulus in the US, the major trade wars, high total debt in China and a sharp slowdown in EU’s main engine, Germany.

In the six quarters to September 2019, India’s economic growth has slumped from 8 per cent to 4.5 per cent and the government now expects full fiscal year 2019-20 growth to only be 5 per cent, the lowest in a decade. Though the underlying causes of the slowdown are widely debated, opinions also vary whether the slowdown is cyclical or structural in nature.The main causes of the sharp slowdown are thecontinuing high stress in the financial sector, high public sector borrowings, which have subdued private investment; poor sentimentleading to low consumption growth; a falling share of exports to GDP because of declining competitiveness and failure to plug into global value chains; a sharp slowdown in manufacturing; and major problems in key service sectors such as telecom, aviation and power.

As against a better than expected World GDP growth and record world stock markets growth, India has badly underperformed. Due to concerns of India’s poor economic growth and weak corporate earnings, the Indian stock market has been among the worst performing market in 2019.

The Indian stock market also remained volatile for the better part of 2019 on account of drag in corporate earnings, debt defaults, volatile oil prices, escalating trade tensions between the U.S. and China, a weaker rupee and liquidity crisis among NBFC’s.
However, the disconnect between the state of the Indian Economy and equity markets has been quite disconcerting. The main reasons forlow economic and earning growth but Index scaling new highs has been
a) The global Reflation policy with majority global central banks, including the US Fed, following expansionary monetary policies.
b) Stocks are forward looking and are pricing in a likely economic recovery, aided by factors such as ample liquidity, agriculture inflation along with good monsoons and improved Rabi sowing, and lagged impact of lower interest rates.
c) Most importantly, the current economic crisis has set the tone for the much-needed meaningful reform initiatives by the Government which shall have a long-term impact and lead to sustainable development and growth.
2019 was a year, which also taught us some great overdue investment lessons.
  • Markets and economic growth may not move in the same direction. Markets move ahead of earnings.
  • 2019 showed us that how despite the Index touching new Highs, the total market cap can still be negative sowing how the broader market can underperform.
  • Blue chips continued to outpace the broader market for the second straight year in Calendar 2019. The markets and money moved to quality stocks and safe haven making their valuations touch record levels.
  • We learnt that small &mid-caps can actually go down considerably for two consecutive years by double digits and lose most of their premium over large Caps.
  • We also learnt that markets don’t tolerate mis governance and even a whiff of bad governance is punished considerably by the market.
  • 2019 also taught us the risks associated with debt funds and that they are not fixed deposits, returns are not assured, and they can also face a default risk. The credit ratings can swiftly move from AAA to D without any qualms or clarifications.
  • We also learnt that an out of favour asset class like real estate can consistently underperform and go through a major cycle before revival.
  • 2019 also highlighted the vulnerability of the Indian Economy to global headwinds and the impact it can have on both earnings and sentiment.
  • 2019 will also go down possibly as the year in which the FII withdrawals and outflows lost their impact and were countered with the consistent DII inflows.
  • 2019 was also the year in which the market taught the investors and reinforced the meaning of risk in different asset classes.
  • Another Lesson from 2019 was Don’t love the stocks you own; every loser is not a rebound story. Sometimes, low-level buying without proper research can lead to further wealth destruction in the equity market. This is the biggest lesson Dalal Street taught in Calendar 2019.
  • 2019 also reinforced the age-old importance of Asset allocation and the need to optimize risk in a portfolio.
  • 2019 also taught the importance of Gold in the Portfolio and how Gold is the perfect hedge for equity. Gold not only outperformed in 2019 with a 24% rise but Gold investors have reaped slightly better returns than investors in stock market this decade. BSE Sensex has appreciated by 130% in the last 10 years, but gold has outdone it with 134% returns.
  • 2019 also made the government finally realise the enormity of the growth problem and economic slowdown and take corrective policy measures so as to spur growth and also to improve sentiment and investment climate.
Going ahead, analysts say the market will be driven by macro-economic tailwinds. Receding global trade war fears, continuity of enabling government policies and reforms, Continuous government stimulus and tax reforms on equity investments, benefits of low-tax structures for corporates, good monsoon, low-interest rate regime, the low base of CY19 will turn sentiment around, leading to higher consumption. Improving economic outlook along with favourable policies should also see FPIs returning. The continuous liquidity support of DIIs and specifically Mutual funds inflows shall also help the markets.
Markets look at 2020 with optimism about a cyclical economic recovery and earnings uptick.2020 is not for predicting returns but accumulation, asthe broader markets is fairly valued and readying for take-off.
Pundits will always try and call the market’s direction, but a wise man once very aptly said, “When the market’s going down, it’s not because you are stupid and when it is going up, it’s not because you are smart.”
Don’t try to time the market; As the veteran investor said, “Invest when you have the money, redeem when you need the money and your timing will be perfect.”
There is no point sitting on the sidelines and waiting for the stock markets to pick up before you start investing. Peter Lynch has aptly said, “More money has been lost in waiting for the correction to happen, than in the correction itself.”
Consult your Financial advisor, follow your asset allocation strategy, review against your financial goals, continue your SIPs, invest your lumpsum through a STP from an arbitrage fund and you would have made the right decisions in 2020.

Have a Great & profitable Investment year ahead!
Happy Investing!

Sandeep Sahni








Note: All information provided in this blog is for educational purposes only and does not constitute any professional advice or service. Readers are requested to consult a financial advisor before investing as investments are subject to Market Risks.
About The author
    Sandeep Sahni
Sandeep is an alum of IIM Lucknow with a Post Graduate Degree (MBA class of 1988). His also an alum of Shri Ram College of Commerce, Delhi University (B.Com. Hons. Class of 1985.)
Sandeep's investing experience and study of the Financial Markets spans over 30 years. He is based in Chandigarh and has been advising more than 500 clients across the globe on Financial Planning and Wealth Management.
He has promoted “Sahayak Gurukul” which is an attempt to share thoughts and knowledge on aspects related to Personal Finance and Wealth Management. Sahayak Gurukul provides financial insights into the markets, economy and Investments. Whether you are new to the personal finance domain or a professional looking to make your money work for you, the Sahayak Gurukul blogs and workshops are curated to demystify investing, simplify complex personal finance topics and help investors make better decisions about their money.
Alongside, Sandeep conducts regular Investor Awareness Programs and workshops for Training of Mutual Fund Distributors, and workshops and seminars on Financial Planning for Corporate groups, Teachers, Doctors and Other professionals.
 Through his interactions and workshops, Sandeep works towards breaking the myths and illusions about money and finance.He also writes a well-read blog;
He has also conducted presentations, workshops and guest lectures at Management institutes for students on Financial Planning and Wealth Creation. He can be reached at:
91-9888220088, 9814112988
Follow us on:

Blog Comment Policy
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Sunday 5 January 2020

My Ten Rules for 2020


Isn’t The Dawn of a new Year a Wonderful Blessing, Doesn’t it stand for Hope, giving us another start of what we call Life… I don't quite know where my steps or path will lead me, but I sure know how to embark on the journey in this new Year.
As we sit and ponder on the days gone by and the Spring and summer ahead, presents our greatest opportunity.
As I begin 2020, here are a few things I aspire to do each day.
These are more of notes to myself than advice to anyone. I Remembered Abraham Lincoln when I thought of sharing these rules for 2020. Abraham Lincoln once said,"If we both exchange $1, we both will have $1 each, but if we both exchange one good thought, we both will have two good thoughts."
1. Learn More..
"AsatoMaa Sad Gamaya,
TamasoMaa,
JyotirGamaya,
MritorMaa,
AmritamGamaya.
God, please lead me (by giving me knowledge)
from the unreal to the real,
From darkness(of ignorance) to the light(of knowledge),
From death(limitation) to immortality(liberation) - Rig Veda.
Socrates says, “If you know that you don’tknow, that is a great beginning. Then it is possible for you to know.”
To be aware that Iam ignorant creates the possibility of seeking, searching, in yourinteriority for the truth – for your truth.
Don't allow your fame to stop you from bringing out new ideas. Don't be too comfortable to develop your skills and grow your dreams.
Deprive yourself of some luxuries to be able to think and be more creative. Learn more, grow more. The day you stop learning is the day you stop living.
“What we know is but a fistful, what we do not know is the entire universe” Avvaiyar, a Tamil Poet.
Everyone knows this, but few are aware of this. Awareness increases the desire to know. Develop the craving of becoming humble by being aware.
Don't relent in seeking  knowledge. What you leave unsharpened remains blunt. Upgrade yourself often. The only way you can improve the world is by improving yourself. Keep learning, keep upgrading your skills. The only medicine for anti-ageing is lifelong learning.
Becoming wise is a slow game, but wisdom builds up, like compound interest. You have to work at it for a long, long time. But the earlier you start, the more territory you can cover. And the more big, important ideas you can assimilate, the easier the learning process is. Have a temperament to grab ideas and do sensible things. Start this process in 2020 if you haven’t already.
Learn, be better than yesterday.
2. Don’t worry too much about making money.
It won’t change the way you live. Time spent earning enough money is time reasonably well spent. Time earning an excess of money far beyond that required to meet one’s needs, however, is time wasted. So, know how much is enough.
As an old saying goes, “Some people are so poor, all they have is money.” We all know that true wealth is beyond things. The real wealth is meaningful experiences, relationships and life changing wisdom. Wealth and poverty, has nothing to do with material possessions, it is based on contentment and discontent.
If you are content with what you have been blessed with, you are wealthy. This is because wealth is not the possession of abundance, wealth is freedom from need.
Famed author Joseph Heller and Kurt Vonnegut were at a cocktail party at the home of a Wall Street titan, on Long Island. Vonnegut asked his friend: "Joe, how does it feel to know that our host made more money yesterday than you’ll make from all your royalties from Catch-22?” Heller replied: "Well Kurt, I have something he'll never have. Enough."
Get free, Be really rich in 2020.
As far as saving money is concerned, take it seriously but not too much that you compromise your and your family’s present. Especially when you are making a reasonable income and are already saving enough, remember what Warren Buffett says –
…who is to say whether it is better to defer a dollar of expenditure on your family – on a trip to Disneyland or something that they’ll get enormous enjoyment out of – so that when you are 75, you can have a 30-feet boat instead of a 20-feet boat. There are advantages to spending money on your family when it is young – giving them various forms of enjoyment, education, or whatever it may be. But it’s crazy to be spending 105% of your income.
3. Follow your Passion –“The person I miss most is the one I could have been.” George Bernard Shaw
“Within each of us lies “The Project.” - An idea longing to be nourished, cherished, launched and completed. Writing a novel, starting an enterprise, achieving a goal, winning a race.
Our deepest desire is to do The Project. To express our vision. To carefully and patiently watch it unfold. To present it to those who will benefit by it and to experience the pride of the job beautifully done.
Yet, a million distractions battle for our attention. One hundred doubts fill our hearts,and so slowly and subtly, we recite the excuses that construct our realityAnd we shelve The Project. Postponing it for another day, a  better day.
But postponing The Project is life’s greatest lie.
Picasso and Basquiat, Einstein and Edison, Gandhi & Nehru, Steve Jobs and Bill Gates didn’t wait for an ideal day to achieve their dream. They started, when it was difficult, when the odds were against them, when they had little andwhile they were alone.
So many of the world’s troubles are symptoms of The Project undone.Pain is the result of potential denied and when you avoid The Project, you dishonour your gifts, Your Talents, Your Genius.A portion of you goes numb, Silent, Quiet. Scared.
The moment you start The Project, everything shifts. Purpose, focus, passion and peace returns to your life. Eyes sparkle. Energy explodes. Inspiration flows. And your days become supported by coincidence, power and peak possibility.
So please, step up, release all chains, dispel all doubts, Start The Project.
Follow your dream and change the world. You are responsible for no less.”
You owe it to the Universe and once you start, the Universe will conspire to help you achieve it.
"Champions aren’t made in Gyms, Champions are made from something they have deep inside them. A desire, A Dream, A Vision. They have to have the skill and the will; but the will must be stronger than the skill." Mohammed Ali.
Followyour Passion to become a champion.
“If you can't be a pine on the top of the hill,
Be a scrub in the valley – but be
The best little scrub by the side of the rill;
If you can't be a bush, be a bit of grass,
And some highway happier make;
If you can't be a highway, then just be a trail.
If you can't be the sun, be a star;
It isn't in size that you win or you fail;
Be the best of whatever you are.”
4. Choose well.
The most important choices you’ll ever make in life will be with respect to your spouse and your friends. If you choose right, then later choices become simple.
Choose to forgive. Before Nelson Mandela left  prison he said, "as I stand before the door to my freedom, I realise that if I do not leave my pain, anger and bitterness behind me, I will still be in prison".
Self-imprisonment is worse than that imposed. How many of us have imprisoned ourselves inside the walls of anger and bitterness, holding grudges, etc.  Forgiveness sets you free.Get out of your prison in 2020.
Choose to be kind. Always believe that kindness can bring the magic of hope to others. It is a simple way of telling another struggling soul that there is love to be found in this world.
Kindness is more than deeds,
It is an attitude,
an expression,
a look,
a touch.
It could be anything that lifts the morale of another person.
Don’t bother about how much difference it will make.
It will definitely make a difference to someone, somewhere.
In a world where technology is causing some of us to forget how to act human, choose to become the politest person you know. Say “please” and “thank you” to all you meet.
Smile at strangers, a quick and genuine smile to a stranger always connects, unites and uplifts.
Attitude is a choice.
Happiness is a choice.
Optimism is a choice.
Kindness is a choice.
Giving is a choice.
Respect is a choice.
Whatever choice you make, makes you.
Choose well.
5. “What if I fail?” is not the question you must ask this year – What if everything you are going through is preparing you for what you asked for?
I hope that in this new year to come, you make mistakes, Because if you are making mistakes, then you are making new things, trying new things, learning, living, pushing yourself, changing yourself & changing your world.
You will fail. So the better question might be, “After I fail, what then?” If you’ve chosen well, after you fail you will be one step closer to succeeding, you will be wiser and stronger and you almost certainly will be more respected by all of those that are afraid to try.
“Better to face the danger and your fears once, than live your entire life in fear.” Too many of us are not living our dreams because we are living our fears.
Forget all the reasons why it won't work and believe the one reason why it will.
Attempt, take the risk or loose the chance.
Being born was our gift,
Living life is our challenge,
Being the best we can be is our choice.
We all, usually, prefer being in the comfort zone and try to achieve maximum,
it might be possible for some who are entitled for it,
But still,
unbelievable happens only when we step a little out of our comfort area and do a little more.
Destiny unfolds it's secrets before you, universe helps you create magic when you push your limits.
“Regret for the things we did can be tempered by time; it is regret for the things we did not do that is inconsolable”. - Sidney J. Harris
Have the  guts to be true to yourself.
Nothing more.
Overcome your fears, life begins beyond that.
No matter how little your light is, give it a chance to shine.
Go for your dreams, attempt the impossible and don't worry about failure.
6. Build relationships
Good relationships are like trees, they demand attention and care in the beginning,but once they blossoms they provide you shade in all situations of life.
The relationship with yourself sets the tone for every other relationship. Learn to respect yourself, build faith, believe in yourself first.
When you see something beautiful in someone, tell them.
It may just take seconds for you to say, but for them it could last a lifetime.
Between what is said and not meant and what is meant and not said, most of love is lost.
A great relationship is  about appreciating the similarities and respecting the differences.
Relationships are like barter system, if you don't like what you are getting, please check what you are giving.
Don’t avoid conflict. Everybody runs from conflict. It makes us feel bad so we avoid it. We sweep it under the rug, hoping it will somehow resolve itself,
it never does- it just festers like a bad wound.
Every conflict carries within it a chance to learn a powerful lesson and grow as a human being
And every conflict - whether with a loved one or a customer - is a gorgeous opportunity to forge an even deeper connection with them.
By turning their dissatisfaction into a wow for them.
So don't run from conflict, embrace it.
Relish in the potential it carries.
Celebrate it.
Let 2020 be a year to build and mend relationships.
7.Be Happy !
Ancient Egyptians believed that upon death they would be asked two questions and their answers would determine whether they could continue their journey in the afterlife. The first question was, "Did you bring joy?"
The second was, "Did you find joy?"
Every day, whatever the circumstances, take a few minutes & focus on seeing yourselves in joy.
The biggest contemporary disease is, 'I'll be HAPPY when...
My problems go away,
When my worries end,
When I get the money.
When I get this job.
Well, the reality is, you never get to when.
The only way to find happiness is to understand that Happiness is not out there. It's always within. Remember, Being Miserable is a habit; Being Happy is also a habit; Amount of work is same and the choice is yours. Make the right choice.
Don’t also put off “living happily ever after” for another year. 
"Time is like a river. You cannot touch the same water twice, because the flow that has passed will never pass again. Be happy now, with what you have, don't wait for the perfect time.
Don’t assume you’ll have another year. You won’t get this life again. No one will bring back the years; no one will restore you to yourself. Stop being busy,tell the ones you love how much you love them often enough. Give them a hug. Spend time with them, be happy with them, create memories with them and one day you will remember the days when your home used to be filled with laughter, arguments, fights, jokes and loads of mischief.
8. Be successful,by doing these five simple things:
1) Create value for others;
2) Contribute to someone, without keeping score; give without expecting anything in return.
3) Say what needs to be said and also learn the art of saying No
4) Learn something new, do something scary; and
5) Reject shortcuts.
“The difference between successful people and very successful people is that very successful people say ‘NO’ to almost everything.” World-class is so much more about what you don’t do, rather than what you actually do. Amazing producers and world-changers are Masters of The Thoughtful No. While your To-Do list is important, your Not-To-Do list is essential.
Success doesn't come from making the right choices, But by not making the wrong choices. Learn the art of saying NO and the first NO you have to say to, is to yourself, and remove the unwanted things.
But also remember that:
“He has achieved success who has lived well, laughed often, and loved much;
Who has enjoyed the trust of pure women, the respect of intelligent men and the love of little children;
Who has filled his niche and accomplished his task;
Who has never lacked appreciation of Earth's beauty or failed to express it;
Who has left the world better than he found it,
Whether an improved poppy, a perfect poem, or a rescued soul;
Who has always looked for the best in others and given them the best he had;
Whose life was an inspiration;
Whose memory a benediction”
9. Pay attention to detail – to the smallest thing.
"For the want of a nail the shoe was lost,
For the want of a shoe the horse was lost,
For the want of a horse the rider was lost,
For the want of a rider the battle was lost,
For the want of a battle the kingdom was lost,
And all for the want of a horseshoe-nail"- Benjamin Franklin
A small leak,
A small tear,
A small overhead,
A small expense
A small misadventure
A small mistake
May not be undone.
Pay attention to detail and to small things for they can lead to major complications and loss of “kingdom.”
10. Face your fears. We’re all fearful, we are all scared…of some things…and many things. I’ve never seen any person who has no fear. However, in dealing with fear several times over the past few years, I have realized one very important thing.
It is that, in our life, the issue is not really ‘fear’ but rather, what we do despite it. We can either get managed by fear, or manage it. We can either acknowledge fear or fall into an emotional whirlpool. We can either accept fear or pretend that it doesn’t exist at all. We can either give up or get up in the face of fear.
“O Lord of Thee these boons I ask
Let me never shun a righteous task.
Let me be fearless when I go to battle.
Give me faith that victory will be mine.
Give me power to sing Thy praise,
And when comes the time to end my life,
Let me fall in mighty strife...”
In fact, fear is what keeps us safe at most times in our lives. Fear keeps us out of harm’s way. All we need to have is the courage to manage it. Nobody can give us the courage. You have to practice it and realize it yourself. You have to make a habit of mindfulness practice to get over your fears. Then, when fear strikes you, you will already know what to do.
"Don't let a win get to your head or a loss to your heart. Only a man who knows what it is like to be defeated can reach down to the bottom of his soul and come up with the extra ounce of power it takes to win when the match is even." Mohammed Ali
And, before I end, here is a beautiful poem from Khalil Gibran, the Lebanese poet well known for his book, The Prophet, that strikes a chord deep within.
FEAR (Khalil Gibran)
It is said that before entering the sea
a river trembles with fear.
She looks back at the path she has travelled,
from the peaks of the mountains,
the long winding road crossing forests and villages.
And in front of her,
she sees an ocean so vast,
that to enter
there seems nothing more than to disappear forever.
But there is no other way.
The river cannot go back.
Nobody can go back.
To go back is impossible in existence.
The river needs to take the risk
of entering the ocean
because only then will fear disappear,
because that’s where the river will know
it’s not about disappearing into the ocean,
but of becoming the ocean.
Overcome all your fears in 2020.
Benjamin Franklin said, “Be at war with your vices, at peace with your neighbours, and let every new year find you a better man.”
I’m so grateful to have you share this journey with me, and I look forward to continuing our connect in 2020, whatever it may bring.
Stay happy, Stay healthy, Stay kind,Stay generous
And
Stay Blessed Forever.
Lots of Regards and Best wishes for a wonderful 2020
Sandeep Sahni






Note: All information provided in this blog is for educational purposes only and does not constitute any professional advice or service. Readers are requested to consult a financial advisor before investing as investments are subject to Market Risks.
About The author
                                                                     Sandeep Sahni
Sandeep is an alum of IIM Lucknow with a Post Graduate Degree (MBA class of 1988). His also an alum of Shri Ram College of Commerce, Delhi University (B.Com. Hons. Class of 1985.)
Sandeep's investing experience and study of the Financial Markets spans over 30 years. He is based in Chandigarh and has been advising more than 500 clients across the globe on Financial Planning and Wealth Management.
He has promoted “Sahayak Gurukul” which is an attempt to share thoughts and knowledge on aspects related to Personal Finance and Wealth Management. Sahayak Gurukul provides financial insights into the markets, economy and Investments. Whether you are new to the personal finance domain or a professional looking to make your money work for you, the Sahayak Gurukul blogs and workshops are curated to demystify investing, simplify complex personal finance topics and help investors make better decisions about their money.
Alongside, Sandeep conducts regular Investor Awareness Programs and workshops for Training of Mutual Fund Distributors, and workshops and seminars on Financial Planning for Corporate groups, Teachers, Doctors and Other professionals.
Through his interactions and workshops, Sandeep works towards breaking the myths and illusions about money and finance.He also writes a well-read blog;
He has also conducted presentations, workshops and guest lectures at Management institutes for students on Financial Planning and Wealth Creation. He can be reached at:
91-9888220088, 9814112988
Follow us on:
Blog Comment Policy
Your thoughts are vital to the health of this blog and are the driving force behind the analysis and calculators that you see here. We welcome criticism and differing opinions. We will do our very best to respond to all comments ASAP. Please do not include hyperlinks or email ids in the comment body. Such comments will be moderated and we reserve the right to delete the entire comment or remove the links before approving them.

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