Well nothing new in this post..we all know that Indians are good savers (hear hear…why banks in India are so profitable that even PSU banks make a profit)…well here is a study which was has been reported by Wharton…about India and China..nothing new, but presented in good style by Wharton’s magazine..


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  1. PV,
    There was an article in Business Standard a few months ago that people realize instinctively that there is risk in the Equity / Mutual Fund and related products and rely on Fixed Income such as FD’s, PO schemes, etc. Makes sense.

    To a great extent there is agressive selling of riskier products and not too many products in the Fixed Income space for retail.

    There is limited information of much wealth has been lost by the MF industry. Survivor bias holds true.

    Nothing against the Wharton article, which is good, but if financial literacy is for pushing riskier products or low return one’s, then such literacy will not serve the immediate purpose is to make people aware of available products and the risk/return aspects. This is not easy and hence either there need to be low cost advisers who have the investor ‘interest’ in mind (which is a tough call).


  2. Understanding risk is not easy. Fund managers and IFAs also find it difficult to understand risk, forget the common man and the business journalist! Is there no risk in investing in fixed income securities? Well risk class 101 talks about inflation, does it not?

    A product is sold aggressively or not should not determine whether the product is good or appropriate. Health insurance is sold aggressively – frankly people do need it do they not? People do not buy, so manufacturers have to pay a high commission (even they do not like to pay!). Without equity our generation cannot retire. Simple. We have to create our own pension – ONLY EQUITIES can do it.

    Why the f..should a ‘good advisor’ be ‘low cost’. If a customer pays me say Rs. 35,000 per annum and I make sure he DOES NOT PUT Rs. 400,000 in a ULIP with a 40% upfront load, have I not justified my fees in ONE TRANSACTION ALONE? who is to decide a ‘fair fee’…market? LOL!!

  3. @subra
    Perhaps there is a deep rooted belief that good advise comes from learned people who are above this material world!LoL.
    Perhaps also people forget that in those days such advisors were granted land and cows so they did not suffer from any lack in the material world.
    Today the government takes your land / wealth and gives you Bull****
    So advise at your peril, for neither the recipient nor the king (regulator) will protect your interests.

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