The first and most important lesson of good financial planning is long term wealth creation. Returns compound over the long term, and risk reduces at the same time. However, replicating a process over the long run requires a thorough understanding of its working and a disciplined approach - it is more skill than luck.

Long term wealth creation is best achieved through a professionally managed active portfolio. Direct investing requires skills in selection, market timing, diversification and rebalancing, which could be costly and difficult for investors to pursue on their own. A managed portfolio like a mutual fund offers a professionally managed solution that makes it simpler for an investor to hold a diversified equity portfolio.

The implementation of a long term wealth creation strategy, however, involves selecting a fund that would capture the best, over the long run. OptiMix is an ideal long term solution because it specializes in selecting the best funds and managers across market cycles. OptiMix is a multi manager solution, which aims to blend together several funds and actively manage them for consistent returns, wrapping them into a single product.

The ability to own a single fund, rather than multiple funds that have to be rebalanced on your own using your skills, also brings with it significant cost and tax efficiency. If an investor were to move in and out of funds from time to time, charges/load need to be paid and capital gains taxes may be crystallized on exit. However when the provider of a multi manager solution makes such changes in the fund managers underlying the solution, such a change neither triggers extra costs nor taxes for the investor.