Either people do not understand or do not want to apply common sense….so some investment myths continue. Let me list some of the emails that I have received recently….
1. ‘What ever you say about Gold, NO OTHER ASSET CLASS has given the kind of return that gold has given in the last 40 years’:
Vow! will people use excel sheets before they make such claims please? Then look at the returns that you could have got from Wipro, and let us exchange notes please. If you think Wipro is an unfair example (on a metals basis, gold is a poor pick!) compare gold return to the return on the sensex (growth option – reinvestment of dividends) and then we can comment. Fair?
2. Other than gold it is only prime land which has given such good returns NO OTHER ASSET CLASS: Check 40 years return on a flat in Santacruz, Ghatkopar, Defence Colony, Green Park, Besant Nagar, Adayar, among the metros – compare it to the sensex returns…over 31 years!
3. In a market like this, which is falling, it is better to invest in debt instruments which give 13.5% return over the next 5 years: If inflation is about 10% and you are sure it will remain there over the next 5 years, you are getting a NEGATIVE RETURN if you invest in a debt product! Well I have no way of making sure whether it will continue to fall. People should use the words like increasing and decreasing very carefully. What has happened and what will happen maybe different….
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