This really is not really an allegation, but people do make such a statement. Frankly to me it does not matter.

Subramoney is not a money making venture – and i do not see it happening in the future too. So if somebody did a SIP and gained money or did a SIP and made money, good. Or bad. As you wish.

I do anecdotal stories, largely invest in equities (by the way my debt portfolio can see me through the next 10-15 yrs of my life), do not like real estate as an investment, especially if there is leverage.

However, I do have real estate in my portfolio – more as a short term instrument against debt rather than a purchase and sale. I do agree that one needs some real estate to use – so one house, one office, one dispensary, one hospital… more to be treated as an ‘asset’ to use, rather than as an investment.

When I talk of equity return I think of returns like a company which is now paying my Dad 20x his COST and the purchase was in 1989. Not long if you consider that investing lives can be 20-40 in one’s lifetime. Sorry but FDs do not come anywhere near these nos. so largely my debt instruments are normally PPF. However recently i have made some indecent returns in listed bonds, but there I will soon be a seller rather than a buyer. It is of course a AAA bond, so i do not have to worry about the rating / quality risk. It is almost sovereign. At a close to double digit coupon, I expect that bond to pay for my expenses till my time on this planet ends. Oops I forgot the put and call option, did I?

Fixed deposits and bonds cannot compound for heavens’ sake! I see people saying FDs compound. It just means they do not understand the impact of taxation. Sad but true. Sensible compounding on sensible amounts cannot happen in regular coupon debt instruments. That is the reason why a bond fund is better than a FD, but bond funds come with HUGE management fee, which i do not like. Eeks, catch 22 anybody? Sure there is a solution like investing a small amount and let it compound – and the investment be in the name of a non tax payer. Yes in ‘000s it is possible not in lakhs. To me sensible compounding has to be chunky.

I let people write whatever they want in the comments column – correct, wrong, right, accusing, – frankly I am indifferent. Yes I have come across some brilliant people, some useful people, doctors, dentists, professors, CAs, defense people,…….and I thank them for their inputs. Others I am at worst indifferent. In fact I find some readers being attacked by other readers – and again I am indifferent to both of them…sorry.

I need to end this post…its rambling…


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  1. Indifference and stone walling are the best weapons. How can anybody fight them? Throw in a little passive aggression and the person is invincible 🙂
    Continue the same way sir. Those who want to learn will learn.

  2. i do not agree with your view on real estate. Layman’s could not get inputs to find a good equity. Real estate investments has yielded better returns even in the tier 3 towns and villages also.

  3. HI … Can you write a post on why ppl shud prefer PPF compared to Bank FDs? .. Recently I heard abt a debt fund savings account from Reliance where-in you get around 8% returns .. how does it compare to PPF? ..That wud really help ppl like me .. Thanks in advance..

  4. ‘Sensible compounding has to be chunky’ – this may not hold true for every body Subra Sir. For a lower middle class like me even compounding in ‘000 matters!! Tax is a point. As Einstein said- ‘Compound interest is the eighth wonder of the world’.. why interrupt it unnecessarily’?

  5. No Subra

    You are not indifferent but just by being out here you are trying to share investing experiences, some hard lessons learnt the hard way, with many like me – that could not be indifferent.

    Just keep rambling – it would be enough.

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