December 29, 2010
School of Business, Kochi
Investors form the backbone of financial markets. Their investments contribute to the development of the economy. However, not all investors possess the knowledge required to make informed investment decisions.
“Proper financial planning is the key to beating inflation and we must choose between asset classes depending on our changing risk preferences,” explained Dr. Meera E., who helped organize the one-day workshop Gateway to Financial Freedom at Kochi.
Hosted by Amrita School of Business in partnership with Hedge Equities, the workshop aimed to help investors understand right investment strategies, in order to create wealth for themselves and the economy.
During the benedictory address, Swami Poornamritananda Puri suggested how one could live a more meaningful life. “We need to live a balanced spiritual life with love as the motive for all our actions,” he stated. “We should master wealth, instead of being ruled by it.”
In his inaugural address, Mr. K. Madhavan Nair (IRS, Chief Commissioner of Income Tax Kochi) stressed the need to invest cautiously. “The Indian capital market is very fragile because it’s dependent on US and other foreign markets,” he highlighted.
Mr. Nair provided a brief introduction of the history of the Indian Financial Market, tracing the origin of the concept of limited liability.
The five-session workshop opened with a discussion by Mr. Alex K. Babu, Managing Director, Hedge Equities, on asset classes. “In order to free ourselves from financial constraints and best inflation, we must invest across different asset classes,” he stated.
Mr. Rajiv N. P., Dean, Hedge School of Applied Economics, provided an insight to liquidity, appreciation and legal procedures flexibility in payment structures of various asset classes.
Two sessions were conducted by Amrita faculty, Dr. Sunanda Muralidharan and Dr. E. Meera. While the former explained various financial products, including non-marketable financial assets, equity shares and insurance policies, the latter elaborated on the need to have clear portfolio objectives.
“One must have the patience to observe the markets. Reading newspapers and journals to learn about latest trends is necessary. The investor must check the risk tolerance capacity.”
The final session was conducted by personnel from Hedge Equities highlighted the attitude of the Indian investor who typically places more emphasis on short-term gains.
As the workshop drew to a close Dr. Pandian, Chairman, University Level Committee of PG Programs at Amrita, emphasized that as we increase our personal wealth, we should also think about how we can use that wealth to help society.
“We need to support the cause of the common man. Healthy and sustainable financial growth in India will happen only when the generated wealth trickles down to the poor, who constitute nearly 70% of the Indian population,” he stated.