The year 2007 was perhaps the last year of the madness cycle – with Ninja and all kinds of excesses. However the market corrected in 2008 and recovered very fast in 2009.

The sad part is that the persons responsible in Eurpoe and in USA were not even brought to book – the Banking Regulators. In fact most of the so called heroes in the financial service industry have come out second best. Warren Buffet was literally dragged to give evidence. Then to protect his money (or whatever) he defended Goldman Sachs and Moodys.

Ben Bernanke…well less said the better. If you cannot trust the banker, the regulator, the rating agencies, …well how do you invest? This is a question we will all have to handle ourselves. One cannot run away from reality, but one needs to invest also…

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  1. We are too obsessed with the west for what has happened in the recent past. I am not saying what you say is not right. Its spot on. But we’ve had our share too! Satyam & IPL are just an example. There are lots of companies who are neck deep, especially the real estate developers. And when the shit hits the fan no regulations are going to work. Because the regulations in our country are innocent investor centric. The nexus between the politicians and the real estate developers are allowed to flourish by the so called regulators. The CBI, SEBI and other investigators & regulators than start singing peans about the great economist that the Dr. Singh is. Never mind spectrum Raja whose economic value is protected by the Dr. But then what the hell! Who the heck is Virgina Wolf? No politician for sure. Its you and me buddy.

  2. Hi Subra,

    Recently, I came across a term Private Equity. I tried looking for funds where retail investors like me can invest in such a fund, that invests in Private Equity form.

    Out of being novice, I also happened to call IL&FS investments, and tried enquiring about it. They said they expect a min of 40cr as investment. I immediately hung up.

    I’d appreciate, if you could please write something about Private Equity, that ll definitely enlighten me and many others.

    Thanks & Regards
    Yogesh Tiwari

  3. regulators are a moral makes people let their guards down thinking that there is someone out there looking out for you.what nonsense.only failure and pain are real regulators.

  4. Dear Yogesh,

    Retail investors can invest in Private Equity(Qualified PE Funds) with a minimum of 25 lacs of commitment. Funds like ICICI Venture, Relaince PE, India reit, ASK…..There are some with a min of 10 lacs also but are not from established Venture Fund houses

    If i may take the liberty to advise. Please try to select your Advisor carefully who can bring all options at your table and explain in detail the characteristics of each PE Fund

    You may also want to note that PE Investments are considered to be the most risky(Even more than Equity), please corerct me if i im wrong but i am pretty sure


  5. Dear Nakul,
    Thanks for increasing my general knowledge. I did not know till date that the person who can invest minimum 10-25Lacs in a fund is called retail investor 🙂

  6. Most of my friends have stayed away from P/E investing, thanks to me. If somebody wants to risk about Rs. 35-50 lakhs and not worry about liquidity for 7-10 years he should ideally have a liquid net-worth (not including the houses that he is using) of about 5-7 crores. So if your net-worth is less than that do not look at P/E. Leave that to people like Azim Premji – who lost a nice chunk of money in Subhiksha – all thanks to the smartness of Icici Ventures.

    If Azim Premji can be cheated, I would rather be in Hdfc top 200. Thank you P/E.

  7. Dear Yogesh,
    Was that menat to be sarcastic????

    Dear Subra,
    ICICI ventures broke even with Subhiksha, so i guess the investors are nt complaining….But i do think I Ventures is the best bet of any of the PE Funds….

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