I meet all kind of people who put their money in shares and stocks….some of them have some investment in mutual funds also…but let me share with you some parts of the conversations…..

1. Why do you invest?

Just like that

I have no clue..but I have fun…Sir Hdfc is a good share no? I bought 5 shares at Rs. 732

2. Do you know how much return you get on your investments?


It is just Rs. 50,000 that I play with so it does not matter

I always sell at a profit, so I must be getting good returns (ps: when she makes a loss she just holds on)

3. Are you a trader?

No sir I hold for 3-4 weeks before I sell

Sometimes I make enough money to sell immediately, sometimes I hold for a longer period. Reliance Infocom I have been holding for 4 years…

4. How much is the return on your Mutual fund portfolio?

No clue. I think it must be good – I have to hold it for a long time. I have to hold it for 3 years..

5. How do you manage your tax?

I invest in a life insurance policy, i have medical insurance, and I buy some mutual funds every year. I redeem in 3 years time – what I redeemed this yea was the same amount as I had invested 3 years ago…

6. Does your husband know about your investments?

of the  4 people I asked,  3 of them said NO. One of them  said yes – we both invest.

However, they will come and crib about MF returns…

.’Sir that MF that you suggested has given me only 6% annualised return over the last 5 years…I ask them..’WHICH asset of yours has given MORE than that?’.

Sadly, the answer is NONE….Amazing, but the market needs such voluntary contributors to the Broker’s Welfare Fund…


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  1. Hi Subra swami,

    Any one of us could have been on the other side of this `conversation’. Quite honestly most, me for sure, have no clue how to manage money properly and understand which instrument is yielding what return.

  2. There is a proveb, which all investors of gold should ruminate on.
    If you visit a goldsmith 3-4 times for buying selling the same gold jewellery, the gold is his.
    Thats the kind of margin retail market of physical gold has. A retail customer can no where buy or sell physical gold at the same rate as the spot bullion rate. S/he needs to suffer a huge markup for buy leg and cut for sell leg.

    Bottom line – its not only important to decide what asset class to buy, but how u buy it and therefore what hit you take as transaction charges.

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