Today, 4th July 2017, PenguWIN steps into 4th year of successful operations. It has been an exciting journey so far with ups and some downs. Our humble and sincere thanks to all our clients, well-wishers and partners for imposing faith and supporting us. There have been many instances where some of our existing clients have referred their friends/colleagues/relatives to benefit from our services and follow up with them on a regular basis, until they become our clients. I presume that only delighted clients would go so far.
Personally, the learning have been immense and the confidence that we are able to build among our clients has increased significantly with magnitude of returns their portfolios have achieved. We have struck to our original objective of maximizing the value delivered over revenues. In this profession, if your focus is always on revenues and profits, then you tend to compromise on the kind of products and services that you offer to the clients. I believe that certain professions are to be run in this fashion or otherwise the person should not have chosen this. Professions including Doctors, Civil services have to be run in this fashion and not purely for the sake of money. We do keep hearing that doctors are given targets on performing surgeries and ‘Bureaucrats have become more corrupt than politicians’. It’s not that these professionals should not make money, (and for the hard work that goes into their profession) but have to draw a clear line between what is ethics and what is not.
When we started 3 years back, the business has to be built from scratch with less than half a dozen investors who were very close friends of mine. A significant proportion of our clients that we work with today are new to financial investments, especially equities. However much historic data and facts are presented, unless the investors experience it personally in their portfolios, the conviction will not be there. Now, after 3 years of operation, I can confidently say that clients with whom we have worked for 2 years and above have made excellent returns in their portfolio. Though the market valuations (slightly on the higher side) is one of the reasons, the discipline of investing systematically and the pedigree of funds invested also play a key role.
From 25,962 on 4th July 2014, Sensex has moved to 31,321 (today’s opening) which is annualized return of 6.88%. But all our clients have made significant alpha (Fund returns over Sensex) over this period. The markets are almost at all-time high. But people who think that it is probably a time to sell need to understand that 12k, 16k, 22k and even 25,962 when we commenced operation (4-Jul-14) was an all-time high at that point in time. There is no doubt that Sensex will continue to grow further as long as the companies make profits (earnings) and the macro environment is good in India. While we don’t recommend lump-sum investments at this point in time, continuing your systematic investing (SIPs and SWPs) is a discipline that you have to adhere to. Selling should be done only based on our goals, when we have planned commitments and the fund managers are in a better position on judging the market.
Equity as an asset class provides the best returns over longer time frames (3 to 5 years, minimum, depending on the product type). Investors who aspire to create wealth, should have conviction on Equity. Yes, it would not be a smooth journey and have minor and major jerks. But, this is the risk premium for fantastic returns that it provides, way above the other Asset classes. Don’t panic (investors typically get worried when the markets tank and at the same time the market touches new highs), remain cool and you will definitely make good returns and we are there to handhold you in this long journey. Please remember that “time” is a very important factor for success in Equity investment and allocation of short term funds to equity is one of the key issues that creates dissonance among people.
I want to repeat the following once again and ‘n’ number of times: Our sincere thanks to all our esteemed clients for their support and encouragement without which we would not be where we are today. We strongly believe that references and word of mouth of delighted customers is what helps us grow rather than marketing gimmicks which are ephemeral.
‘The only place where success comes before work is in dictionary’ – Vidal Sasoon.
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