the toughest thing for a financial planner to do is to REALLOCATE assets when one asset class is doing very well.

In the current situation (October 2013) – most of the press is saying:

– real estate is doing EXTREMELY well…

– equities are doing REALLY badly

-debt will give you a NEGATIVE return and

-gold is a good way to GROW your assets.

Now I am not getting into a debate, but let us ask ourselves one question:


when it is growing at a fantastic rate or when it is moving sideways?


when it is doing well and growing at a fantastic rate or when it is sliding down?

WHY do we reallocate our assets?

To achieve fantastic growth or to partially protect some of the fab returns that we have already got?

Most financial planners and ‘advisors’ in India do not go through any training. They have not done stress tests of portfolios, they do not do much of an analysis of the client needs. They rarely question some of the stupid assumptions that the clients make.

They get carried away as much as the investors themselves.

So today a financial planner is PERFECTLY at ease with a portfolio which is 80% in Real estate! One financial planner has suggested a portfolio which will continue to be 80% concentrated on REAL ESTATE over the next 20 years. This is a terrible assumption – and putting big chunks of borrowed MONEY in a economy where employability is NOT guaranteed seems so dumb.

I am happy that I do not seek the professional help of financial planners (qualified or otherwise) or of doctors (only one nice homeopath please!)…really, thank God for that.

Dayenu God.

Sarva Lokan sukinav bhavanthu….

give everybody what YOU think they deserve….

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  1. Lot of financial planners compare themselves with doctors while comparing the distributors with chemists.

    Comparing the current crop of financial planner with doctors will be a joke. Doctors (from all streams) spend 4-6-10 years learning their craft in medical colleges. They study huge amount of medical material and spend their entire life time in a single field.

    Many of the folks masquerading as planners have come from very diverse backgrounds – non finance areas such as retailing, small business, distrubution. Folks who qualify as CFPs also spend 3-6 months studying 6-8 books. It can never be compared with doctors.

  2. and will doctors stop pretending that they are Gods? like Dr. NO talking about a medical or surgical emergency? Really? the third largest killer in the US is medical apathy…so what chance that I get killed because i went to a doctor?

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