It may sound very outlandish and out dated that I do not allow my clients to borrow for investing. In fact I have become very unpopular with some clients for this very reason. However I am against people borrowing against gold, against their properties (top-up loan), personal loans or even a leveraged application in the primary market. I believe you invest what you have. In case you have borrowed and invested – you have been lucky in the past 5 years. Please do not confuse short term tactics with long term investment strategy. This is the tip of the day!

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  1. Dear PV,

    Well said and I have followed this for 95 % of my clients. I have persuaded all of them to shun debt and grow their assets slowly . We get enough opportunities to grow our money with compounding, without having to run insane risks. Hare and Tortoise , I favour the tortoise
    Modify the fable. The Hare starts on his financial journey with no debt. starts off smoothly and then gets a bright idea to borrow. Gets saddled with debt which drags him down. The tortoise accumulates slowly, but gets home in good shape.

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