You may have read it earlier. Elsewhere or here itself. It may have had a different title, but the principles remain the same.

Let me tell you the MOST important investment steps:

1. Learn, know and Understand YOURSELF: This is not so simple. Just too many people I know will say ‘I have to make this investment for 30 years. In 3 years they may have asked me 30 times what they should do – Nav has gone up, Nav has gone down, I am changing jobs,…..blah blah. If YOU do not know YOURSELF even the Gods cannot help you. Or you are making it tough for your advisers.

2. Be ready to invest: All your expensive loans should have been paid off. This means other than a housing mortgage make yourself debt free.

3. Learn the absolute basics: Debt, equity, conflict of interest, mutual fund, hidden charges, term insurance, budget, what an adviser will tell you – but you should check out at,…LOL. ‘Do not leave home without this’….

4. Find an adviser: Research about him. Trust, but verify. Once you trust, let go.

5. Resolve conflict of adviser vs fund house vs you…obviously if he is doing it free, he may be cheap and expensive. However inexpensive need not mean cheap. For example if you promise to invest Rs. 2 million a year every year for 10 years, I can afford to advise you free. Pharma companies treat doctors well, do not worry. Jokes apart, understand what and why you are paying (or not paying) …

6. Create a Plan: Involve your spouse. Have said enough times why you need a plan. You will find the answer in some other posts for sure.

7. Invest in the best fund houses and schemes. Popular may not be the best, but then size and longevity ensure a simple Darwin theory. If it has stayed so long and collected so much money, that fund cannot be to bad, right? Keep monitoring but you cannot go too wrong. If the FM starts lagging the index, shift to the index.

8. Make copious notes on what you are doing and why. Have said this many times in the past too.

9. Stick to your plan – do not get carried away by the media. If you have too high an opinion about a TV expert (or a blogger for that matter ask a few of his friends, soon you will know he/she is not worth the adulation). If in doubt read this blog. I shred most people, except those who can send a truck to kill me.

10. Live well (you cannot take it with you), but provide for all known events and insure for unknown / tragic events.


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  1. Dear Subra Sir
    These seem to be the ten commandments of Financiology. Thanks for preaching. Only through following this can we reach the ultimate goal of financial freedom.
    dr kishan

  2. It was like word’s from horse’s mouth. To be honest very few finance blogs i visit, your’s is one of them. Today i feel there so much little i know and how much to learn….

    I am a learner and will learn Fast 🙂

  3. Few months back you mentioned your picks like Tata Motors, Chola and some more I dont remember were doing pretty well! How are they doing now I wonder?

  4. Hi Subra,

    Point #6 can be enhanced to include your teenage children in planning. This way we can pass on the learnings and knowledge.



  5. Dear Subra Sir, Good Morning.

    Just came to know that ICICI Pru Focused Bluechip Eq Retail had a change in fund manger in Jan 2012. Is the fund still good to go?

    Also which fund to choose from Icici Dyanmic or Discovery? Dynamic has Sankaran Naren as fund manager.

    Should Fidelity be discontinued with?

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