We are often asked in this business, where is your personal money invested? Since I like telling stories, this thread is that answer but with a story.

I started earning in 2005, and investing in 2006/2007. Young blood working on Wall Street, excited and assumed I was more smart than I was. Invested entirely in equities. Husband in the same profession!

2008 came along. Market fell. AUMs of firms fell. Bonuses collapsed. Same with ESOPs. Multiply by 2. Decided to move to India in 2009 to start a business. Withdrew capital at significant cuts. This story is detailed here:

Current investments are largely in BAF (70 percent) and the balance in equities (mid, small, etc).

No debt because we pay EMIs so it doesn’t make sense.

Why are my investments a little conservative? Because I am a capital markets professional married to another one. Together we are essentially a high beta bet on markets. So personal investments are kept more conservative. This is what 2008 taught us and 2020 has been easier!

If my husband was a doctor or in any uncorrelated field, the answer and portfolio would look different.

Takeaway: My investments are a function of my personal circumstances. And yours should be too. As @morganhousel said the personal comes first in “personal finance”.

Last thing, it will be great if others share their personal finance stories.

We all make mistakes, we all have circumstances and we all have our journeys. Most importantly we can learn from each other!

Since many of you asked what is BAF... it refers to balanced advantage funds or dynamic asset allocation funds. They have a blend of equity and debt (30-80 equity, the rest debt, varying basis market conditions). Apologies, so used to our industry lingo :)

Do I like SIPs?

Love them and use them! Monthly salary after expenses and EMIs goes via SIPs into the same funds. Keeps me disciplined and keeps my life simple. Never cancelled a SIP so far.

Some of you have asked me which funds: it will be largely Edelweiss AMC funds. The BAF mentioned is Edel Balanced Advantage Fund, and then our Mid and Small Cap funds. The non Edelweiss funds are old investments - and I don’t redeem funds easily until they have had time!

@threadreaderapp unroll