Guest Session on Entrepreneur’s dilemma: How to hedge against Inflation Erosion? on July 20, 2021

Department : Acropolis Institute of Technology and Research, Indore

Speaker : Mr. Krishnan Iyer in association with Advisors Organization & BSE

Date : 20/07/2021

Day : Tuesday

Time : 2:30 pm to 3:30 pm

Coordinated by : Prof. Snehal Phatak (MBA Department Faculty Coordinator)

Beneficiaries : 43 Students of MBA semester II

Highlights of the Event

IIC-AFMR, MBA department has organized an Online Guest session on 20/07/2021. The speaker was Mr. Krishnan Iyer, a certified Financial and Corporate Trainer. He is a PGDBA Finance from SIES College of Management Studies 2002, AIII (Associate of Insurance Institute of India) and has conducted number of Corporate, students and community learning programs covering topics like Mutual Fund Investor Awareness program, Simplifying management of personal Finance, Personality Development and so on. The session was specially focused on how an Entrepreneur should be prepared to hedge the risk of wealth erosion due to Inflation.

Mr Krishnan explained that it is very important to take the right financial steps towards achieving financial freedom. Time value of money is when you compare the value of money in hand versus the relative value of money you receive or pay out in the future. Inflation is a very big risk for new businesses and directly impacts the business decisions. These days it is mainly caused by Lifestyle Inflation i.e due to increased spending on gadgets, automobiles etc. It affects the outflow and inflow of cash (money). Entrepreneurs often need ready cash for short periods of time as most bills are paid monthly, quarterly, or even semiannually. Therefore, he should invest in financial products having regulatory backing. He should grow his money so as to evade the cash outflow arising on account of rising inflation.

With the help of many real life examples he explained that it is very important to diversify the investment amount in hand. He also explained about the Financial Planning Pyramid. He also shared that students also have a big opportunity in the area of Mutual Fund distributorship /advisory as this is the industry that is going to booming industry in the near future.

Key Learning: 1. Asset allocation is the key. 2. Biggest risk in life is not taking any risk.

Prepared by: Prof. Snehal Phatak