Amazing how people who do not know anything about debt, equity, mutual funds, risk, real estate, …suddenly turn advisers.

No this is not about somebody selling life insurance and mutual fund products, but inside the family ‘advisers’ ever willing to help! They just wait for some ‘helpless’ person and start giving advise. Let us look at some typical victims:

1. Woman recently widowed: The maximum pity in life I have is for this person! Everybody around her (who think they are well wishers) advise her on how to invest.

2. About to Retire: Suddenly inside the house a new set of advisers are born. They may or may not be selling any financial products, but like to generally give gyan about how when their father retired in 1976, he had invested in post office MIS….so now he should invest in a mutual fund MIP – after all both are the same!

3. A kid with a new job: OMG it is his/her money please advise only if you are asked.

4. A person who has a lump sum – could be from a flat sale, an inheritance, etc.

What is the typical advise?

1. Buy a house and give it on rent. The rent will be equal to the EMI..and the house will appreciate.

2. Invest in a mutual fund MIP, it is just like the post office MIS.

3. Invest in a SIP, it is the best investment.

4. Buy some good shares every month, that way you can build a good portfolio. Start small maybe Rs. 3000 a month.

5. Sell all your shares / mutual funds that your husband has left you and put it in a Post office scheme. It is the safest.

6. Take all the money that you have and put it in Hdfc Top 200, it is the best scheme ever. You need only one scheme, so just invest Rs. 20 lakhs in one scheme, in one shot.

7. Sell this current house, it is too big for you. Shift to a smaller house in a far away suburb, it will be cheaper.

…..and so on and so forth…..

all the advise listed is WRONG. WRONG. COMPLETELY WRONG.


a later post perhaps?

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  1. Dear Mr. Subramanyam,
    Seasons Greetings. We would like to invite you to speak at our Kalbadevi CA Study Circle, in South Mumbai in Dec. 2010 on the subject ” Investments & Financial Planning” which is meant to benefit the Chartered Accoutants fraternity. It will be an eagarly awaited CPE event.
    Kindly send your contact details. email & mobile no so that we can interact about the same.

    CA. Amrit Porwal
    Convener, Kalbdevi CPE Study Circle of WIRC

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