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Inscriptions 35 october2021
The document discusses coping skills in response to personal losses, emphasizing that the intensity and duration of grief vary between individuals. It argues that pain management can be trained and that supportive environments, like mastermind groups, can aid in coping with stress. Additionally, it touches upon investment strategies during market fluctuations and the importance of adhering to principled financial planning.
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Inscriptions 35 october2021
- 1. A MAGAZINE FROMTHE GOPAST CENTRE FOR LEARNING Inscriptions 35 TRUTH STAYS FOREVER October 2021
- 2. PAGE INDEX Page CHAPTERTopic By 3 SCULPTOR SCULPTS Cope Up Skill “That one skill that makes humans Omnipotent” MR R.GOPINATH 13 GURUS SPEAK SENSEX 60K SHOULD I STAY INVESTED? MR R.GOPINATH 26 CATERPILLAR SPACE ASSET ALLOCATION MR D BALU 29 WE ARE PROUD OF MS R RAMYA HULA HOOP RECORD 31 GALLERY SCREEN SHOTS OF THE SESSIONS IN PROGRESS
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- 4. Coping up Skill “Thatone skill that makes humans Omnipotent” Part 1 of the total 4 parts R.Gopinath [email protected] Some people su ff er more from a painful incident (Loss), than others who face similar situation. Why does this happen? It is quite logical to assume that if the extent of the loss is the same, its impact on the emotions of di ff erent people should be the same. But in reality it is quite di ff erent. Some people are pushed into a state of grief for years, while some get out of it in few months. It is not just about the period of grief, it is also about the intensity of the pain they undergo (feel). Some people cope up well with tough situations, while some don’t.
- 5. This triggers somequestions in our mind that, Is this pain self in fl icted? can we control its intensity? Should we have to just wait for the time to heal the wound? Does it happen to us, or are we causing it to happen? “We can reduce the span of su ff ering (of a loss) by feeling con fi dent. We extend it, by feeling meek. By practice we can accomplish gaining con fi dence ad lib.”- rg In this article I will be using the word Loss to represent anything that caused (or can cause) pain. It could be a broken relationship, Financial Loss or an Accident that caused physical rehabilitation, or a severe insult, or anything like that… Such incidents that cause pain, keep happening, whether we want it or not. 1) Can we cope up with the pain that it may create in us? Yes. 2) Is it a skill that one can get trained in? Yes. 3) Can we also teach such skills to others who are our near and dear ones? Yes. 4) What should we do to learn it? Yes. Do you think by mistake I typed the answer as Yes for the above questions? Many might feel it that way. It was a mistake for sure, but it was committed purposely to show
- 6. that if youkeep answering a few questions consecutively as “Yes”, you create a temporary habit of saying Yes, without even thinking. That means by repeating something often you trigger an autopilot mechanism inside you. So for you to master this skill of “Coping up” also, you need to practice all that that will be discussed in this article many times that it also becomes an autopilot response for you. If people who have su ff ered severe spine injuries and have fought their way back to start walking and working, what is not possible to be achieved? They have recovered from traumatic experiences that might have lasted for years, and they have regained their lives. Whereas we have seen people with issues much less severe than these, give up, loose hopes and get depressed. This only indicates that it is not the Loss that is destructive, it is the way these people deal with that, that becomes either constructive or destructive. How do people de fi ne their state of mind, when they are in an unwanted situation? I Feel Bad, I Feel down, I Feel dull, I Feel bad, I Feel depressed, I Feel helpless, I Feel lonely, I Feel sad, I Feel insulted,
- 7. Consider the followingstarred statements: ★We can reduce the span of su ff ering (of a loss) by feeling con fi dent. We extend it, by feeling meek. By practice we can accomplish gaining con fi dence ad lib.-rg ★So feeling con fi dent reduces the span of su ff ering. While feeling meek or inferior extends the su ff ering. ★Self pity magni fi es the misfortune, while self con fi dence tames it. ★How I feel about myself leads to how I treat myself. What causes feelings? Thoughts cause the feelings. It is one’s thoughts that manifest as feelings inside him. “I think I may not get this job” = Feeling anxious “I think I have a good chance of getting this job” = Feeling con fi dent. “I think they may not like my appearance” = Feeling inferior “I think they will be happy seeing me”= Feeling good. So if we alter our thoughts, we can alter our feelings. How do we produce thoughts? For the purpose of this article I am going to divide thoughts into two groups: 1) Supportive thoughts and 2) Negative thoughts.
- 8. Supportive thoughts aresuch that trigger feelings of happiness, con fi dence, power, abundance and courage. Negative thoughts are such that trigger, sadness, meekness, helplessness, weakness, scarcity and fear. Please see this picture: This explains the 3 major sources of thoughts, which become the source of our feelings:
- 9. The fi rst aspect thatwe will be covering in this article is 1) Information received from the environment. We all have a brain that receives information from the outer world, process it and produce thoughts. Examples: Doctor says, “Don’t worry, The surgery is over, and he will recover soon” This is an information, this triggers supportive thoughts. Newspaper: “There has a been a scam in the local bank and depositors loose millions overnight” triggers negative thoughts. A colleague, “You look great today” triggers supportive thoughts. A TV serial, “ a break in the relationship between the hero boy friend and the heroine girl friend” triggers negative thoughts. Mother to her daughter, “I know you, you will give your best performance today at the singing competition” triggers supportive thoughts. Master yelling at the students, “Your IQ levels are the lowest, it is my bad luck that I have to waste my time on you” triggers negative thoughts.
- 10. These examples leadsus to one point that we must strive to create an environment that will keep giving us information that will trigger supportive thoughts. So create a Master Mind group to support you. It could be your parents, siblings, colleagues, teachers or friends. This is very important to help you cope up with stressful situations. Internet and the media have made it possible to create such master mind groups across di ff erent geographies and timezones. Evidences point out that people who enjoy such mastermind company get relieved of su ff erings much sooner than the ones who have not got one such group. But to take support of this MM you will have to keep venting your feelings and seek support. There is nothing wrong in seeking help to relieve stress. These people need not be medically quali fi ed people, all that they should be is that they truly care for you and are mentally strong themselves. I will share with you an incident to prove this point, that the MM group participants need not be highly quali fi ed people, all that is required is that they truly care for you and they are mentally strong. I have been associated with a hospital for more than a decade with the responsibility of training their doctors, counsellors, nurses and support team in e ff ective counselling skills, self motivation and mind management skills. This hospital specialises in fertility support. The issues of infertility can be divided into two major causes. 1) The Physical factors like the Fallopian tube blocks, semen counts etc and 2) The emotional factors like anxiety, self denial, hardened negative beliefs etc.
- 11. Once a welleducated couple were availing assistance from this hospital. The husband is holding multiple degrees in engineering and management and is employed in a senior position. The wife is also well quali fi ed, graduate in technology and few other certi fi cate courses as well also employed in senior management cadre. Her parents were living in a small village a few 100 kms from Hyderabad where this couple live. Her mother is not so educated and she is a school dropout. This couple have been to various other hospitals in the past 4 years availing advice and medicines but did not get the desired result The physical factors were minor issues and they are being addressed clinically. The doctors of this hospital found a pattern which they thought could be causing the delay in conception. She used to become hyper anxious every month as the days of her periods were nearing. She will do less interaction with others in the o ffi ce and house, and even the few interactions will be sharp. She will sleep a lot and even avail leave from work. Her husband was very understanding but was too busy with his work. The doctor called her mother from the village and spoke to her. They agreed that the mother will shift to Hyderabad to stay with her daughter for a few months and will keep assuring her that things are going to be ok soon. She is to talk about how to take care of the baby and what small inconveniences will have to be undergone till the baby becomes 2 years old. They also started a habit of reciting together, Vishnu Sahasranamam (1000 holy names of Lord Vishnu) in the evening. This went on for two months and the happy thing happened. As they wanted she conceived.
- 12. During this periodthe nurses of this hospital were also involved in frequent interaction with this lady through video conferencing. Since then the mother stayed with her to help her daughter have a normal delivery of a healthy child. This was also a thing to be reckoned because the physical factors like the pelvic structure strongly indicated from the beginning a need for a Caesarian section. This is the power of Master Mind group. In the coming issue I will be dealing with the Guilt feeling on some past incidents that makes it di ffi cult for a person to cope up with stressful events and he keeps in fl icting on himself more pain often dragging himself into a state of extreme self pity. Till we meet next time to discuss a very common problem “Guilt Feeling” of some incident that we caused in the past and it tormenting us even after a long time, please create your Master Mind group to help you create “Supportive Thoughts”.
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- 14. Sensex60K R.GOPINATH [email protected] The day sensexcrossed 60000 points (Nifty 17850), I got calls from investors, advisors and brokers asking what they should do now or advice their clients? Should they ask them to book pro fi ts? Should they invest at this level? This is not the fi rst time I receive such queries. I often get to hear this. Mostly when there is a steep rise or when there is steep fall. Should I book pro fi ts? Should I enter (top up) at this level? This situation is called a dilemma. When there are two opposite choices and both appear to be right (or both wrong) it puts us into a dilemma. Whenever we are in a dilemma we must get back to our principles. Principles will guide us correctly. Principles are constant. They are valid in all geographies. They work all times. Before reiterating the principles here, let me tell you it is very di ffi cult to answer the above questions with a “Yes” or “No” answer.
- 15. Let me showthe fl ow chart of the answers and its e ff ects: Q: Sensex at 60K: Should I book pro fi ts now and take cash? Suppose I answer: Yes. They sell their stocks now and book good pro fi ts. The markets undergo correction and sensex starts moving down, then these people will be happy that they did the right thing in booking pro fi ts and if the marketers tank (big fall) over the weekend then they will be very happy, pat
- 16. themselves on theirback and slight pat on my back for advising them. But if they had enchased as I had said, and then the market continued its rise and goes up even by 1000 points in the next fortnight, these people will be unhappy that they encashed (even after getting good pro fi ts) and mentally calculate their loses and feel bad that they did not hold on for some more time. Suppose I had answered: No don’t encash now, hold on. If the markets continue rising, they will feel glad that they did not sell their stocks, but still stay apprehensive that anytime markets can undergo correction, so better quit now. On the other hand if the markets turned red, and corrected by just 1000 points in the next fortnight these people will be unhappy that if they had encashed at 60K they would have got better pro fi ts, even though they are still with handsome pro fi ts (notionally) Why is that even after making decent pro fi ts, they are still unhappy? Ok what is the correct answer? Should investors sell the equity in their portfolio now? Should they further invest now?
- 18. Let us lookat the basics. Please see this picture This is called Cash to Cash cycle: This picture shows that a person works hard makes money and converts it into assets. In future when he requires money for various needs converts assets into cash. It was cash in the beginning and became cash in the end. This picture demonstrates two important points. 1) Cash is the king and 2) Assets are intermediary. An intermediary is required to help reach from one place to another place.
- 19. So before selectingany asset, we must ask 3 questions, listen to the answers and then select the asset accordingly: 1) When, When and When we will require money, 2) How much money we will require and 3) For what purpose will we require money. Accordingly we must select assets that will help us reach those goals. The Science of creating wealth is more depended on (one’s) psychology and less on numbers and mathematical formulas. Please consider these highlighted statements: Begin with the end in the mind. Plan your exit (from this asset) at the entry point itself. If this was done before selecting the asset (Equity) one will not be in a dilemma with Sensex60K. Money is not a need. Money is needed to serve a purpose. If one is chasing money, he will never be satis fi ed, for every time he makes money he will feel it inadequate. If the same person is pursuing a goal and estimates the money needed to ful fi l it, and fi nds way to make that money, he will enjoy making that money.
- 20. Investors Feel MuchMore Pain When They Lose $1 Than They Feel Pleasure When They Gain $1. • Most Of Us Are Actually Willing To Take More Risk To Avoid A Loss Than We Are Willing To Take To Achieve A Gain. • Dr Meir Statman Of Santa Clara University Calls “Fear Of Regret” Many Investors Buy A Stock And Then If It Goes Down, Refuse To Sell It, Even If They Can See That It May Decline Further. Not Just The Novices, But This Feeling Is More Predominant In Fund Managers. They Buy What Most Of Other Managers Buy. PROSPECT THEORY FORMULATED IN 1979 AND FURTHER DEVELOPED IN 1992 BY AMOS TVERSKY AND DANIEL KAHNEMAN,
- 21. • The TheoryContinues With A Second Concept, Based On The Observation That People Attribute Excessive Weight To Events With Low Probabilities And Insu ffi cient Weight To Events With High Probability. Look At The Picture “Emotional Roller Coaster”
- 22. Due to thisemotional roller coaster they often buy high and sell low. There are very few exceptions to this. Even investors highly educated, experienced and con fi dent let themselves under go this roller coaster. The following chart will substantiate this: This is a chart of Net Resources Mobilised by Mutual Funds in India.
- 23. This chart ismade up by merging two charts of the same period. The sensex and the net resources mobilised by Mutual funds in India. (Source: RBI, Hand book on Economy). You will see from this chart how investors move out and in according to the rise and fall of the markets. You will also observe from the above chart that most of the times the mass movement to redeem their units (Out fl ow) is when the market is at low levels and the fresh investments (In fl ow) is when the markets are moving Northward. So back to our questions Should I cash now? or should I enter now?. During this dilemma I will ask you go back to principles and you will fi nd the dilemma, solved. Let me reiterate the 8 basic principles, about which we have been seeing in “Inscriptions” in detail one by one: 8 Governing principles: 1) If a person adopts the formula “Income - Expenses = Savings” then he can never become wealthy.The correct formula is “Income - Savings = Expenses. 2) Regularity is the key to wealth. (The key to wealth is not the ROI, IRR, CAGR etc) 3) Start early and reach safely. 4) Gold and greed can never stay together. 5) Purpose must decide the choice. 6) Financial Pyramid 7) Draw the map before you start the journey. 8) Professional support helps.
- 24. Please pay specialattention to the 3 of the above, underlined and highlighted. They are directly relevant to this article, about sensex60k. Let me conclude this article by answering the two questions: 1) Should I book pro fi ts, encash my equities? My Answer is: You can decide to do so based on two aspects: a) How far is your goal (need for money for a speci fi c purpose)? Suppose there is only 3 more years to go, then you better safeguard your pro fi ts and move the money towards safer investment avenues. Suppose there is 5 more years to reach, then you can gradually move out of equity towards debts averaging the cost month after month. For example the goal was to fund for daughter’s graduation in a world class University. She has just entered her SSC. That leaves you with 3 years to get the money ready. b) Have you achieved your target amount for the goal? If you have achieved it, then irrespective of how much of a long time you still have, get out of equity and safeguard the amount in risk free growth instruments. For example it was estimated using Expenses provision method that you will require a corpus of 3,00,00,000 for buying an annuity policy to support your retired life, and in this bull run your portfolio has touched this 3Crore level.
- 25. For a personwho entered the market at 40000 levels 60000 may appear a great movement. But for the person who enters at 60,000, even 65,000 may not be good growth. So don’t let yourself awed by the fi gure 60,000, it is just another station in the journey of Sensex. 2) Should I enter the equity market now? They say it is overheated. Std dev is the highest in the history? My answer is: Draw a map of life. Mark all major junctions that require big money. Classify the goals as “Not negotiable goals and Nice to have goals”. To fund the Not negotiable goals at the minimum level, never take the equity route. Take the Risk free growth route. To fund the Reasonable level goals you can go in for equity investments and so also for the aspirational levels. But before doing that please watch your fi nancial pyramid. If you have adequate assets in Risk Free growth, then venture into equities. Try to structure portfolios individually for each of the major goals in life, under a common fi nancial plan for the life. Take good professional help. Keep reviewing this once in 6 months, irrespective of the market movements. Follow the principles and escape the Dilemma
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- 27. ASSET ALLOCATION D.BALU (TIRUPPUR) [email protected] GOPASTSTUDENT. There are different types of assets available in financial planning. Most popular financial assets are GOLD, REAL ESTATE, MUTUAL FUNDS(EQUITY/DEBT), LIFE INSRUANCE PRODUCTS, POSTOFFICE SAVINGS SCHEMES, BANK DEPOSIT SCHEMES, CHIT FUNDS. People have their own rights to choose one or more financial assets to achieve their financial goals. Most of the time one financial plan is not enough to meet their goals. Why because, in general, financial goals are mix of short term, mid term and long term. Obviously, none of the asset allocation is best or worst in all times. So, we need mix of two or more financial products. For example, if you are expecting more returns, that asset is either market risk or credit risk. If you are expecting safety to your investment, the yield outcome from that investment is low or less in liquidity. If you are expecting liquidity the yield outcome of the investment is low. Many of us are not much aware of the facts of different type of assets, because of the complex nature of the product. Hence, they try to avoid that particular asset class. But one should know how much he/she has to invest in a particular kind of asset. If you are not aware much about that asset class you can. get the help from the experts who are in the field for more than a decade. Why it’s required? Otherwise, people stick on to one asset class which they have experienced in their past. Finally, they lost to reach their financial goals as per their wish. For example, somebody may have the good experience in Real estate sale in their past, they feel that real estate is the best asset class to create long term wealth creation, some body who experienced with equity market for longer period says that share market is the best asset class to create long term wealth creation. Somebody believes that Post office or bank deposits are safer in capital, even the rate of returns are low and less tax efficiency. People also believe that insurance is the best asset class because it’s the only instrument create asset first and then save money at the reasonable interest rate and tax exemption either in saving time and maturity time. I too recommend the insurance products and strongly believe that “you can’t get all solution with your insurance product, similarly you can’t give any solution without insurance” Of course, all their opinions are correct. My recommendation is, please consider the mix of asset allocation in your goal planning and also check the asset class at least once in year and then do the necessary step to streamline the asset class to reach the goal. Ok, how do we mix the asset class? Is there any formula for that? My answer is BIG NO. It is differed from person to person, need to need, time to time. etc., You can use the thumb rules. Example consider your age say 30 years, then you want to deal with share market for your retirement corpus you can invest 30% in debt market and 70% in equity market. If you are planning for your children higher education at the age of 17. You need money at that time without fail. So, you can’t say any excuse like market correction or not favors to withdraw etc., because you can’t get admission to your child in the next year and your child is not like that idea too. For this need, you have to choose the conventional products like endowment type of policy. Always use the fundamentals of financial pyramids like to give priorities to “PROTECTION” first, for that you have to choose only Insurance products like Life insurance term policy, Health insurance, Critical insurance cover, Accident insurance. Secondly, give your priorities to your “DUTIES AND RESPONSIBILITY” which you need to invest regularly and the money is needed to accomplish your future responsibility either you survive or not,
- 28. here you haveto choose Insurance endowment type policy. (Death or maturity) it helps you to meet the goals at the stipulated time. After that, you can consider any other product which gives good growth with risk. You can choose gold to meet your daughter marriage by way of purchasing gold regularly in smaller quantity, which is the best example for rupee cost averaging. Now, Government announced Sovereign gold bond is the one of the best asset allocators to those having a female child under the age group of 0 to 5 years. The scheme benefit is you can get 2.5% interest per annum for the idle gold value and the maturity after eight years attracts Tax free return. You can also satisfy the younger generation to choose the gold as per the latest trend. In addition to that if you invest in Government Sovereign Gold bond or any other paper gold, you need not worry about the theft or you need not spend money for locker to preserve that gold ornament. Real estate is also a good investment if you are planning to build a house in near future. But if you believe that you will earn good returns over a long term, may or may not be realistic. You must be aware of the land litigation and the tittle issues. Mutual fund is most important asset class to those who are expecting little bit more returns and plan for their retirement in their early age. Because we are living in the fixed interest rates are declining era. I recommend to my customer should invest in mutual fund through Systematic Investment Plan (SIP) and also advise them to withdraw money under Systematic Withdrawal (SWP) which helps the investor not to lose their money in Market correction. It also helps my customer to create wealth after beating the Inflation. However, by and large people who says that they want to take risk in mutual funds. In their dictionary taking risk means getting higher profit not getting higher loss. So, that they are unable to withstand in share market bubbles cracking time. I also conduct Investor awareness program and try to educate them how the ALPHA, BETA, STANDARD DEVIATIONS, SHARP RATIO variations are affect share market equity products, and what to do, if it’s happened. One should also understand YTM, MODIFIED DURATION, MECALY DURATION, CREDIT RISK in debt market. I never recommend my customer to choose the local CHIT Funds or un registered Chit companies running nearby their house, even though it yields high returns or the organizer of the chit group is well known to them or they may be of their close friend or relatives, because it is not registered in the Chit Registration Act. I educate them the practical problem in dealing with local chits. Mainly you can’t claim your money from the un registered chit companies. I summarize my above points in the following simple way. 1. Set your goal with specific time frame and then choose the right asset class which helps to reach the goal. 2. Invest regularly according to the portion you allocated to the specific asset. 3. Monitor the fund’s performance in frequent intervals with the help of experts in that field, according to the fund performance take necessary step to correct it and make sure that asset class in right track. 4. Last but not least, act yourself according to the system not based on your wish or emotions. If you follow it sincerely, you will achieve your goal without fail.
- 29. PROUD TO BE ASSOCIATED MsR Ramya Record in Hula Hoop rotations
- 30. Ms. R. Ramyadaughter of Mr. K. Ramkumar & Mrs Bavya Ramkumar. She e is a highly talented student studying in nineth standard at Boaz Public School Chennai. It is a pride moment that the most Hula Hoop rotations on the arm is 264 and was achieved by her.
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