Niyo Wealth's first AMA on 10 am-12 noon, 23rd Sept 2020!

Join us for Niyo Community’s first AMA with Swapnil Bhaskar, Business Head, Niyo Wealth to ask him anything from compounding to goal planning to mutual fund/stock selection to the future of fintech.

Swapnil got interested in personal finance when someone almost convinced him to invest in an ULIP scheme. Ever since, he first sorted out his personal finance, then for others as a part of SBI and then as a co-founder of Goalwise, a goal-based investment advisory Goalwise. And now with Goalwise merging with Niyo, he is heading business at Niyo Wealth.

He has over a decade’s experience in personal finance and banking and he’s looking forward to answer all your questions!

His favourite topics are:

  1. Financial planning
  2. Future of finance
  3. Personal fitness


All questions can be asked below this post and will be answered here too :slight_smile:


Would like to know Swapnil’s views on - a) retirement planning b) how to select a good credit card c) common mistakes people make while investing/financial planning.
Looking forward to the session!


Would love to know about how stock markets have performed/behaved in 2020 in comparison to the crash/recession of 2008.


What is a good way to come up with a personal finance plan? What is your investment philosophy?


Which debt fund is better for investment for an investment horizon of 5 years, Dynamic Bond Funds or GILT funds?


I’m in my early twenties. How should I set my personal finance goals for the next 10-year time horizon? What are some common mistakes to avoid here?

Additionally, Can you recommend some good resources to follow which will help me educate on the topic of personal finance specifically?


Hello Swapnil,
First all of its a great initiative here, thank you so much for this.

Now, my questions

  1. Are we moving towards euphoric buying in the financial world? I mean gold is hitting high and the Indian financial market is at P/E of 32

The ground reality and the market are in antithetical position. What should we do to protect our investments ?
With the coming U.S elections, things are already unsteady.

Can you please chart out a framework for retail investor here.

Thank You


Why do you burn marketing when the operational services doesn’t support your eco system.

Created an account on Sep 2nd and hasn’t received the card since

Is this the first impression strategy or how do you expect me to put a positive word to my community when enquired about?

a) Retirement Planning: The most critical financial goal to plan for is Retirement goal (once Emergency Fund is in place). This goal is also the toughest to plan as it has a very long tenure - can start at the time when you enter in your job (accumulation phase i.e. accumulating money in this goal until retirement age) and runs until you and your dependents live on this planet (distribution phase i.e. getting money out of this goal).
I used this calculator ( to plan for my retirement.
Some important variables in this calculator are:
Retirement Age - when you want to retire (or at least become financially independent of your 9-6 job) and try to keep it on a conservative side. I have kept it at 55.
Monthly expenses - take it as today’s monthly expenses. I have kept it at 75k
Starting Amount - if you have invested any amount for this as of now
Risk Profile - You can check it through a risk profile link there. Mine is Moderate :slight_smile:
Life Expectancy - Keep this as the age of eldest you know in your family as on date. Mine is 95 as my grandfather died at this age.

Now the most important thing is to re-plan this goal every 3 years or at life event like marriage, kids, change of job etc as our expenses, retirement age and life expectancy change over the time.


RBI governor recently said that India’s stock market is not in sync with the real economy which will result in a correction. With this background should we continue investing in equity or should we wait for the market to correct?


My father recently retired from a government job and has received his gratuity and pension has started coming in. What would you suggest to do with this money?


Hi Swapnil
I have recently started investing in MF through Niyo, what should be my short term, long term, emergency goal planning? I am in my mid-20s.
Should I have a moderate or high-risk profile?


b) Credit Card selection: Before the selection part, we must think about why these cards exist. These exist to change our spending behaviour to match our aspirations in life. These cards come with offers so psychologically what these are doing is rewarding your spending behaviour. Spend->Reward->You feel high/happy->Spend more->Reward-> You feel high/happy …and one day you might start spending on things you actually don’t need and might not have enough money to payback in time. This is a debt trap - avoid this situation.

If we can use a credit card sensibly -> use it when buying essentials and payback the full amount in due time -> Voila …you will become a pain for the credit card company :slight_smile:

Selection Part:

  1. First calculate how much essential spending you have in a year. Find out which are the biggest 3 spending categories.
  2. Filter the cards available in the market basis the top 3 spending categories. For e.g. one of my top expenditure in a year is airline tickets (post house rent and children school fees). So, I am looking for a card which rewards me the most for this spending. (Airline ticket is an essential for me (and my family) to make at least 2 trips in a year to my hometown)
  3. Then think how you want to spend your reward points of a card -> travel, cashback, etc. The best combo is a card which maximises the accumulation of reward points on a category say travel and then during the redemption on the same category (travel) itself it gives the best Re value of a reward point.
  4. Re value of a reward point is basically what is the value of a reward point (an arbitrary number) to its final rupee value. For e.g. I have a Citi PremierMiles card. It gives me 10 points per Rs. 100 spending on booking an airline ticket. However, the company gives me Rs. 0.45 for each point. So, Rs. 0.45*(10(points)/Rs 100 spending) gives me -> Rs. 4.5 for every Rs. 100 spent on an airline ticket. Think of it as 4.5% money back for that spending.
  5. If it is your first card then go for a zero fee card. Use it for about a year and see if it is making sense for you in terms of getting rewards for your spending estimation vs actually incurred in that year.
  6. After this, you can move to an annual fee card. Logically, the annual fee should be lesser than the rupee value you get back on spending through that card. For e.g. the same Citi Card comes with ~ Rs. 3,500 annual fee (including taxes). So, my spending on travel should at least be Rs. 3,500/(4.5/100) -> ~Rs. 78,000. My rule of thumb is your actual spending should be double of what it came out here to put in efforts to get an annual fee card.

Always avoid a debt trap situation -> watch out your spending (avoid impulsive buying by keeping that product in cart for at least a day or preparing a list of buying items before going to the market) and always always pay in full.


c) Common mistakes:

  1. Not setting the right benchmark for investing -> My benchmark is that savings should beat inflation in the long term (10+ yrs horizon). (It is not say I need a fixed 15% returns etc. - my benchmark moves along with the inflation in the economy)
  2. Not thinking of asset allocation for managing risk and maintaining diversification. For e.g. Rs. 100 of saving -> invested as Rs. 40 in equity and 60 in fixed income for a low risk profile investor.
  3. Taking higher risk than one’s own tolerance level. For example a low risk profile investor who can tolerate a 20% loss in the short term ended up investing 100% in equity which went down by 50%. This is a disaster. It holds the other way around as well. If no investments were made in equity then the investor will lose out to inflation in the long term. (that is also a loss)
  4. Not re-balancing one’s portfolio at least once in a year to keep the asset allocation in the portfolio as per one’s risk profile.
  5. Chasing returns/what’s hot in the market vs. doing the investments systematically over a very very long period of time (think SIPs).

My questions to Swapnil are
1)what asset allocation(percentage in gold, equity, debt)should we use in the long term for capital appreciation?
2) If the goal is retirement and you have a high risk ability 100 percent in equity then should you rebalance and when and how do you maximise tax efficiency then?
3)Will you come up with recommended funds to invest in for the long term appreciation or even make readymade portfolios of low cost and above average return funds?
4) What changes and features can we expect down the road from niyo wealth?
5) Considering zero commission mutual funds investing, how do you manage to monetise as in do you share data with other intermediaries?
6) Name the funds (equity and debt) in which you personally invested in?

Thanks in advance


If we look at the 2008 recession then it was led by a financial crisis (highly leveraged financial institutions going bust). However, 2020 is a biological crisis meaning a pandemic situation which has terrified each human being for its own survival -> leading to recession in the economy.

The central banks around the world resolved (to some extent) the 2008 crisis by printing and putting a lot of money in the financial markets.

When the pandemic hit the world in 2020 then the stock market crashed thinking there will not be any economic growth (given lockdowns etc.) however the central banks again did the same thing and put in a lot of money into the system. Due to this market recovered.

Now, I don’t know if the central banks solution has fully worked out and market has completely recovered. From here the market may be on its upward march or there can be a crash around the corner. This is a speculative activity.

I love this question because as a human being I love to see a pattern wherever possible. :slight_smile:


Hey Arumuga! Welcome to the Niyo Community! We are currently working with IDFC FIRST to ensure that your physical cards should reach you soon and we will keep you posted on the updates. LK

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