Shyamali Basu, Senior Vice President & Head - Products & Marketing, HDFC Asset Management Co. Ltd.
By: Ms. Shyamali Basu, Senior VP & Head – Products & Marketing, HDFC Asset Management Co. Ltd.
“Nothing ever becomes real till it is experienced –Even a proverb is a proverb till your life has illustrated it”- John Keats, Poet
This quote from a letter by Keats to his siblings sums up how anything we have experienced, especially something of a striking nature, becomes etched in our psyche forever. This aspect of getting impacted by personal experiences becomes all the more relevant today when the world has been ravaged by the Covid-19 pandemic. While this event continues to take a toll on our lives and leaves humanity scarred in more ways than one; it certainly has been a reality check for the world and taught us lessons that we are unlikely to forget anytime soon. In the world of investing, the pandemic has come as a shock to investors and consequently triggered panic-fuelled reactions from many investors.
Although this pandemic is a Black Swan event-an outlier which lies beyond the realms of normal expectations, investors who have stuck to good old principles of investment like diversification, asset allocation, and selection of right financial instruments based on risk appetite and investment horizon, to name a few, have fared better than those who did not. While these principles have always been around, it’s taken a low probability high impact event like this pandemic to create awareness about sound investment principles. Against this backdrop, we would like to draw your attention to our Investor Education App named “MFBytes”, which is available on both Google Play Store and iOS App Store.
Content for MFBytes has been thoughtfully curated considering the differing knowledge requirement of various users. Topics covered range from something as simple as “Saving vs Investing” to something more technical like “REITs (Real Estate Investment Trusts) and InvITs (Infrastructure Investment Trusts)”. On one hand, it covers broader concepts like inflation, time value of money, power of compounding, diversification, asset allocation, etc., while on other hand, it also covers product-specific topics like types of mutual funds, tax advantages of equity & debt funds, Systematic Investment Plans (SIPs), Systematic Transfer Plan (STPs). Further, interesting topics like “Understanding behavioral biases in investing”, “Investment Tenure and choice of investments”, “How does your financial personality matter”, “Coping with volatility” have become must-reads for investors in view of recent events in financial markets.
We do understand that many users could be from the non-financial backgrounds and reading financial concepts endlessly may not seem particularly enthusiastic to many. To address this aspect and to retain user interest in the App, we have gamified the App and extensively used cutting edge graphical illustrations and attention-grabbing quizzes/games throughout the App. This will not only appeal to users aesthetically but would also help them to grasp and retain these vital concepts. Further, the user’s profile section on the App lists his/her achievements on the App, with badges and levels unlocked being displayed there. This ensures that the user’s progress in the App is measurable.
As an investor, you would do well to download the MFBytes App today itself and embark on a journey of financial awareness. Knowing the suitability of various Mutual Funds, understanding one’s risk appetite, using sound criteria for fund selection, and knowing how to cope with volatility, just to name a few, will always hold you in good stead in your pursuit for wealth creation.
While one can always learn from experience, learning solely through experience can certainly be a costly and time-consuming adventure, which one would rather avoid. Instead, time well spent on sharpening one’s knowledge and getting the basics of investing right, from the very beginning, would go a long way in ensuring a fulfilling investing experience for years to come.
The views expressed are those of HDFC Asset Management Company Limited (HDFC AMC). The views are not investment advice. Investors should obtain their own independent advice before making a decision to invest in any securities.
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