Do I have to tell you where I heard this advice? ….so here it is:

1. If you are not confident, keep your money in cash: ‘Cash is king’ goes the argument.

My take:

If cash is king what is inflation? I think sitting on cash till the market improves is an amazingly stupid piece of advice.

2. When in doubt invest in large cap funds:

My take

if everybody did that, will not yield expectations come down?

3 Do a SIP in a large cap fund, if in doubt choose an Index fund:

My take:

this is not a bad advice at all, except that he also added…in ONE year you will see a 20 to 30% return. I am not sure of that part. Also why the hell should they build such high expectations for the poor investor? He may get 20% but in the past he has been hurt so much that he may not stay beyond 15%.

My take is simple…see the performance of equities over the past 4-8 years, and decide on a fund house scheme. Look for a scheme with a large corpus. A flexicap fund makes sense…if you are still in doubt choose a fund with about 30% in debt and the balance in equity. Such a fund scheme will surely fluctuate less…and may calm your nerves..

 

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  1. Thank You Sir.If we see AUMS ,its not difficult to conclude …Scheme with Large corpous and a scheme with 30 % in debt and balance in equity .Lets do that and forget Noices .

  2. No Milind I did not only mean Prudence. But Prudence is a good place to start. I have money in Prudence and in I Pru Dynamic- that is simply because I LIKE Naren’s market calls.

    For a beginner these are clean, safe funds why take risks with others is what I meant

  3. I agree with you sir.You are right .In Naren and Prashant we have GEMS.For Beginers and otherwise also its Important to give our hard earned money to a person/Institution whom we can trust completly .Thank YOU

  4. Chandrakant Dhutadmal

    I am glad to read subra mentioning specifically about Prudence and dynamic funds. I hope he also writes similat things about stocks also. 🙂

  5. One of the ways to financial Hara Kiri is to see what I say about stocks and do that. I have a lot of Coromandel International, and recently I have been selling…right from 308 to 260.

    I have bought Bharti Tele, Tata Motors, Cummins, Ashok Leyland, Cholamandalam – but i have also sold these at high prices in the past.

    Do u think any such info is useful for You? If yes, God Bless You.

  6. Do not try to copy “Buffet”, “Ambani”, etc.,. The list should also include “Subra”. 🙂

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