One should properly diversify the portfolio, but over or under-diversification will not work. Reasonable diversification is important, says Mukesh Kochar, National Head of Wealth, AUM Capital.
In an interview with MintGenie, Kochar said that investors must refrain from investing in a sole financial instrument or those of the same kind of instruments, as putting all eggs in one basket can be a risky move.
Edited Excerpts:
How do you advise new-age investors to plan and implement investment strategies?
Most of the new-age investors have not seen any downfall in the equity market. Investors who have come to the market post covid have enjoyed a rally in the market with low volatility. One must be aware that the bull and bear phases are synonymous with the market, and the bull market will not last forever. So first of all, allocate only long-term funds to the equity market and maintain proper asset allocation with goal-based investments.
One should properly diversify the portfolio, but over or under-diversification will not work. Reasonable diversification is important. Invest regularly and use any deep fall in the market to invest. One should not look to make quick money as this may be risky and capital may erode. Avoiding the noise of penny stock is very important. One should look at the broader picture over the long term while investing. These are a few things one can keep in mind.
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Portfolios often fall short of their investment goals. What should investors do then?
Investors generally invest more in a rising market and sell and remain sideways in a downward-trending market. Also, they start very late and expect extraordinary returns in a short period to make quick money. One should always invest more in a down market and wait patiently with regular investment to reap the benefits in a bull market. The longer the investment, the more the power of compounding works and hence higher the multiplication of money.
What are the most common mistakes that derail many people from meeting their financial objectives?
Even a trivial financial mistake can derail people from meeting their financial objectives. One such mistake is the absence of diversification in different asset classes. One should refrain from investing in a sole financial instrument or those of the same kind of instruments, as putting all eggs in one basket can be a risky move for any investor. Inadequate knowledge and disregard for prevailing market conditions is another mistake that can make investors inefficient in accomplishing their financial objectives.
Another mistake is not starting early investment in financial planning for retirement. To have financial security during retirement, one must start early. Creating PPF accounts and investments via SIPs is a great way to build a larger retirement corpus. These are some of the mistakes that can be rectified by investors to avoid facing a financial crisis in the long run.
What steps should people take to stay current on financial policies and tax regulations?
One should read financial newspapers in digital apps regularly. Since people are busy in their areas, financial advisors can be consulted for any such thing.
There is more focus on earnings than asset allocation. What is your take on the same?
Asset allocation is the base which has to be done prudently to get the desired result. Otherwise, overallocation or under-allocation is hazardous. This can be done based on tenure, expected risk-return, market conditions, opportunities, hedging, etc. Earning is the outcome of asset allocation. So asset allocation is a process and earning is the outcome. So, focus on the process rather than the outcome.
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Many youngsters are now playing a leading role in managing at least a part of the portfolio themselves. How do you envisage the future of wealth management in the long run?
Nowadays, most of the retail volumes are generated via online mobile applications, resulting in a significant amount of investment from young investors. Technological advancement has made it possible for people to conveniently invest in the stock market.
At the same time, Covid-19 has played a pivotal role in introducing these investors to the market. There had been a downturn in the stock market followed by a gradual rise, resulting in many investors earning money for the first time. It is also evident that youngsters are seizing the opportunities provided by the Indian market into early savings so that they can achieve their long-term goals through the capital market. As the Indian market continues to offer opportunities to the younger generation, this base will likely expand even further.
The future of the wealth management industry is coupled with human expertise and digital prowess. Post-COVID, the wealth management sector has witnessed a significant digital transformation. Wealth managers have seemingly boosted their efficiency by embracing a platform-oriented approach, giving personalised assistance, and customizing investment approaches to create a holistic approach to meeting the demands of individual clients. The inclusion of technology will propel the importance of data analysis while protecting the invaluable client-advisor connection.
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Cornell University administrator Warren Petrofsky will serve as the Faculty of Arts and Sciences’ new dean of administration and finance, charged with spearheading efforts to shore up the school’s finances as it faces a hefty budget deficit.
Petrofsky’s appointment, announced in a Friday email from FAS Dean Hopi E. Hoekstra to FAS affiliates, will begin April 20 — nearly a year after former FAS dean of administration and finance Scott A. Jordan stepped down. Petrofsky will replace interim dean Mary Ann Bradley, who helped shape the early stages of FAS cost-cutting initiatives.
Petrofsky currently serves as associate dean of administration at Cornell University’s College of Arts and Sciences.
As dean, he oversaw a budget cut of nearly $11 million to the institution’s College of Arts and Sciences after the federal government slashed at least $250 million in stop-work orders and frozen grants, according to the Cornell Daily Sun.
He also serves on a work group established in November 2025 to streamline the school’s administrative systems.
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Earlier, at the University of Pennsylvania, Petrofsky managed capital initiatives and organizational redesigns in a number of administrative roles.
Petrofsky is poised to lead similar efforts at the FAS, which relaunched its Resources Committee in spring 2025 and created a committee to consolidate staff positions amid massive federal funding cuts.
As part of its planning process, the committee has quietly brought on external help. Over several months, consultants from McKinsey & Company have been interviewing dozens of administrators and staff across the FAS.
Petrofsky will also likely have a hand in other cost-cutting measures across the FAS, which is facing a $365 million budget deficit. The school has already announced it will keep spending flat for the 2026 fiscal year, and it has dramatically reduced Ph.D. admissions.
In her email, Hoekstra praised Petrofsky’s performance across his career.
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“Warren has emphasized transparency, clarity in communication, and investment in staff development,” she wrote. “He approaches change with steadiness and purpose, and with deep respect for the mission that unites our faculty, researchers, staff, and students. I am confident that he will be a strong partner to me and to our community.”
—Staff writer Amann S. Mahajan can be reached at [email protected] and on Signal at amannsm.38. Follow her on X @amannmahajan.
My spreadsheet reviewed a WalletHub ranking of financial distress for the residents of 100 U.S. cities, including 17 in California. The analysis compared local credit scores, late bill payments, bankruptcy filings and online searches for debt or loans to quantify where individuals had the largest money challenges.
When California cities were divided into three geographic regions – Southern California, the Bay Area, and anything inland – the most challenges were often found far from the coast.
The average national ranking of the six inland cities was 39th worst for distress, the most troubled grade among the state’s slices.
Bakersfield received the inland region’s worst score, ranking No. 24 highest nationally for financial distress. That was followed by Sacramento (30th), San Bernardino (39th), Stockton (43rd), Fresno (45th), and Riverside (52nd).
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Southern California’s seven cities overall fared better, with an average national ranking of 56th largest financial problems.
However, Los Angeles had the state’s ugliest grade, ranking fifth-worst nationally for monetary distress. Then came San Diego at 22nd-worst, then Long Beach (48th), Irvine (70th), Anaheim (71st), Santa Ana (85th), and Chula Vista (89th).
Monetary challenges were limited in the Bay Area. Its four cities average rank was 69th worst nationally.
San Jose had the region’s most distressed finances, with a No. 50 worst ranking. That was followed by Oakland (69th), San Francisco (72nd), and Fremont (83rd).
The results remind us that inland California’s affordability – it’s home to the state’s cheapest housing, for example – doesn’t fully compensate for wages that typically decline the farther one works from the Pacific Ocean.
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A peek inside the scorecard’s grades shows where trouble exists within California.
Credit scores were the lowest inland, with little difference elsewhere. Late payments were also more common inland. Tardy bills were most difficult to find in Northern California.
Bankruptcy problems also were bubbling inland, but grew the slowest in Southern California. And worrisome online searches were more frequent inland, while varying only slightly closer to the Pacific.
Note: Across the state’s 17 cities in the study, the No. 53 average rank is a middle-of-the-pack grade on the 100-city national scale for monetary woes.
Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com
The up-and-coming fintech scored a pair of fourth-quarter beats.
Diversified fintech Chime Financial(CHYM +12.88%) was playing a satisfying tune to investors on Thursday. The company’s stock flew almost 14% higher that trading session, thanks mostly to a fourth quarter that featured notably higher-than-expected revenue guidance.
Sweet music
Chime published its fourth-quarter and full-year 2025 results just after market close on Wednesday. For the former period, the company’s revenue was $596 million, bettering the same quarter of 2024 by 25%. The company’s strongest revenue stream, payments, rose 17% to $396 million. Its take from platform-related activity rose more precipitously, advancing 47% to $200 million.
Image source: Getty Images.
Meanwhile, Chime’s net loss under generally accepted accounting principles (GAAP) more than doubled. It was $45 million, or $0.12 per share, compared with a fourth-quarter 2024 deficit of $19.6 million.
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On average, analysts tracking the stock were modeling revenue below $578 million and a deeper bottom-line loss of $0.20 per share.
In its earnings release, Chime pointed to the take-up of its Chime Card as a particular catalyst for growth. Regarding the product, the company said, “Among new member cohorts, over half are adopting Chime Card, and those members are putting over 70% of their Chime spend on the product, which earns materially higher take rates compared to debit.”
Today’s Change
(12.88%) $2.72
Current Price
$23.83
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Key Data Points
Market Cap
$7.9B
Day’s Range
$22.30 – $24.63
52wk Range
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$16.17 – $44.94
Volume
562K
Avg Vol
3.3M
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Gross Margin
86.34%
Double-digit growth expected
Chime management proffered revenue and non-GAAP (adjusted) earnings before interest, taxes, depreciation, and amortization (EBITDA) guidance for full-year 2026. The company expects to post a top line of $627 million to $637 million, which would represent at least 21% growth over the 2024 result. Adjusted EBITDA should be $380 million to $400 million. No net income forecasts were provided in the earnings release.
It isn’t easy to find a niche in the financial industry, which is crowded with companies offering every imaginable type of service to clients. Yet Chime seems to be achieving that, as the Chime Card is clearly a hit among the company’s target demographic of clientele underserved by mainstream banks. This growth stock is definitely worth considering as a buy.
