EVERY DISCUSSION ON investments invariably considers the impact of inflation. The situation was not different at the investor education seminar hosted in Kozhikode, Kerala, by THE WEEK and Aditya Birla Sun Life AMC (ABSL AMC).
When ABSL AMC’s Rajendra Bendi asked the crowd about the inflation rate in the state, almost all respondents answered in the 1 per cent to 1.5 per cent range, which reflects the national figure. Bendi then dropped a bombshell. He said Kerala’s inflation was pushing 10 per cent, and this was linked to the price rise of two products, copra and coconut oil.
Bendi, who heads ABSL AMC’s investor education and distributor development in the south zone, highlighted how hyper-local inflation could throw household budgets off track. In Kerala, coconut oil prices jumped from Rs160 per litre in 2024 to Rs529 per litre in state-controlled shops. In the open market, branded coconut oil even touched Rs600 per litre.
Using this volatility as a peg, Bendi hammered home the point that investing was key to weathering possible financial storms in the offing. He also presented long-term investment in mutual funds as a hedge against such volatility and encouraged participants to match investments to a specific life goal.
Bendi’s presentation was followed by a panel discussion on the theme Mutual Fund Mantra: How to design your Most Important Investment Plan? The panel comprised Uthara Ramakrishnan, co-founder, Artha Financial Services; M.S. Benny, MD and CEO, Ben Finex Pvt Ltd; and Sajesh K.V., regional head (Kerala), ABSL AMC.
When asked about the golden rule of investing, Sajesh said, “While statutory rules keep changing depending on the policy of the day, the golden rule remains the same—start early.” Uthara chipped in, “It is not for nothing that compounding is called the eighth wonder of the world. When you look at the portfolio of those who stay invested, you might be amazed by the growth they have achieved over the years by just staying put.”
Based on more than three decades of experience, Benny said that he has had families investing under his guidance for three generations. The most successful families, he said, were those who had patience and a diversified portfolio. “Over the years, the two sectors that are seeing massive inflation are education and health care,” he said. “Financially successful families have a realistic view of these costs and invest accordingly.”
The discussion then shifted to how automation in a systematic investment plan helps investors overcome the lethargy that sets in when they must manually validate investment payouts every month. Uthara said, “Somewhere in our minds, we accept that we must live with the amount that is left after the automated investment. That brings in an element of financial discipline.”
The panellists cautioned participants not to fall for hot tips circulated through instant messaging groups. It was always better to work with personal finance advisers, Benny said. The seminar ended with a Q&A session, which covered everything from discount broking apps to specialised investment funds that were introduced this April.