Akshay Iyer from Sarwa Breaks Down the Real Reason You Haven’t Started Investing
Akshay Iyer from Sarwa breaks down why starting early, learning the basics, and trusting the process might just be your smartest money move yet.
One of the most significant hurdles for many individuals is simply taking the first step toward investing.
“Taking that first step to invest is actually the most challenging thing to do.”
He believes that before diving into investments, individuals must establish a solid personal finance foundation. This preparation can significantly ease the transition into investing.
The Importance of Personal Finance Setup
Akshay advises potential investors, particularly young ones, to focus on their personal finance setup before they start investing.
“If you don't have a good personal finance setup prior to that, it'll always make that starting point more difficult.”
This setup includes having an emergency reserve, paying off high-interest debt, and planning for any significant upcoming expenses.
The Role of Education in Investing
Education plays a pivotal role in empowering investors. Akshay highlights the necessity of understanding what one is investing in, stating, “The more educated people are about what they're investing in, the easier their investment journey will be.” He believes that knowledge about the underlying investments and the platforms used can alleviate many concerns that first-time investors face.
Sarwa’s Innovative Solutions
Sarwa has positioned itself as a leader in the fintech space, providing a range of investment solutions tailored to meet the diverse needs of its clients. Akshay explains, “The goal is to really be an all-in-one personal finance platform.” This vision includes offering managed investment solutions, DIY trading options, and even crypto trading, allowing clients to consolidate their financial activities in one place.
Sharia-Compliant Investments
A unique aspect of Sarwa's offerings is its focus on Sharia-compliant investments. Akshay notes, “As part of our managed investment solution, Sarwa Invest, we have halal portfolios, Sharia combined portfolios, even for our savings accounts.” This commitment to providing ethical investment options aligns with the values of many investors in the region.
The Evolution of Investment Platforms
Reflecting on the investment landscape in the UAE, Akshay observes a significant shift toward accessibility and technology-driven solutions. He recalls, “When I first moved over here, there weren't as many investing platforms. There were a lot of hurdles to investing.” However, the emergence of platforms like Sarwa has democratized access to various asset classes, making it easier for individuals to invest.
The Power of Community in Investing
Akshay emphasizes the importance of community in encouraging individuals to engage in outdoor activities, which parallels the investment journey. He states, “The only reason I had to wake up for the first time in like a few months now at 5:30 in the morning to go for a run was because I had a friend with me.” This sense of community can also apply to investing, where shared experiences and knowledge can motivate individuals to take action.
The Future of Investment: Trends and Predictions
As the financial landscape continues to evolve, Akshay shares his thoughts on the future of investment. He acknowledges the uncertainty in market predictions, stating, “The only certainty in what's going to happen this year is that we have no idea what's going to happen.” This uncertainty underscores the importance of a long-term investment strategy, particularly for younger investors who have time on their side.
“The only certainty in what's going to happen this year is that we have no idea what's going to happen.”
The Core and Satellite Investment Approach
For those looking to structure their investments, Akshay recommends the core and satellite approach. He explains, “The core is, let's say that's 80% of your investment, which is going to be in something that's passive, globally diversified.” The remaining 20% can be allocated to more active investments, allowing individuals to balance risk and opportunity.
The Role of Technology in Investing
With the rise of fintech, Akshay sees technology playing a crucial role in the future of investing.
“We are living in a world where trading and investing and the world of artificial intelligence is very, very interlinked.”
This integration of technology can enhance the investment experience, making it more efficient and accessible for all investors.
Akshay Iyer’s insights provide a roadmap for individuals looking to navigate the complexities of investing. From the importance of starting early and establishing a solid financial foundation to the innovative solutions offered by Sarwa, his perspective emphasizes the need for education, community, and adaptability in the ever-changing financial landscape.
“Investing is a very challenging thing to actually sit down and say, look, I'm going to invest my money into whatever it might be.”
With the right tools, knowledge, and support, anyone can embark on their investment journey with confidence.