A few dsys ago I posted in FB saying if you ask the wrong questions, you will get wrong advice. Many people may not understand what is a wrong question, so let me list down a few, see if you can identify with a few of them:

1. My Financial planner has asked me to invest  X amount in Icici Pru Focused Blue Chip fund. Should I invest?

I have no clue on what basis somebody has chosen this fund in your portfolio. How can I answer this question?

2. XYZ fund house has just launched a new scheme. Is it a good scheme.

Truth: I have no clue. I have not seen the fund document, I do not invest in IPOs, and I do not run a RATING BUSINESS either.

What I say: any thing on the fly…..

3. My portfolio consists of 5 fund schemes: A, B, C, D, E. Shall I now shift it to B, C, G, H,  and F ?

My view: Repeat, I do not run rating business or a business based on Aum. So to me, I am indifferent. Repeating what I said in ..3 above.

4. How much should I invest per month?

Without knowing your goals, earning capacity, risk, insurance, etc. HONESTLY, do you expect me to answer this question? Gimme a break guys.

5. Suggest a share that I can buy NOW, but hold on for 20, 30, 40 years?

You buy a share hoping to sell at a price higher than the cost. Every quarter you get to see how it is doing. So it is a Q on Q decision to hold on…When Q turns to years, and years turn to decades, you have a blue chip in your hand.

6. All the gains of a bull run are wiped out in a bear run. How will compounding work?

Pattabhiraman Murari of www.freefincal.com should answer this question. I have no clue from where people get a feeling that over a 30 year investing ‘r’ has to be positive in all the years. If really ALL the gains of a BULL run are lost in a bear run….the index would still be at 100, right?

7. Investing in equities is so risky, why are you asking all of your readers to invest in equities?

Ans: I am no Evangelist for equity investing in India. The real, unpalatable, and hard fact is that I do not care where you invest your money. It is your call. If you invest or do not invest – you gain or you lose. YOU take the call about your investment. You want to read my post, it is your call. You think I write well or write poorly, your call. If you are expecting tips about what to buy, wrong number.

8. I have a salary of Rs. 750,000 per annum. You are asking me  to live in a RENTED house? I can tell you it hurts.

Ans: Rs. 750,000 is a good sum of salary, but Mr. Praaveen if you are really a successful Senior Executive, you should have a REAL NET-WORTH.  You have Rs. 5 lakhs networth at the age or 33 years, tells ma lot about your ability / willingness to save / invest. Your call sir, have fun, I can  ONLY advise, karna to aap ko hai…

 

 

 

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  1. Some intermediate level questions. Readers are welcome to gauge their intelligence level:

    1. Markets have gone up so much! Subra, should I continue, increase, reduce, or stop my SIP?
    2. Should I take a home loan of 1 Cr. now or in May when the interest rates will come down?
    3. Mumbai property rates are gonna crash…where should I buy a 2 BHK flat? (Pune/Nasik/Gadchiroli…) I can get it cheaper and the rate of return will also be higher!
    4. My gold investments (hard coins/ETF/MF) have performed poorly in the last 4 years, but market has done so well! Should I switch out of gold and into Equity funds?
    5. A stock that I bought 3 years ago hasn’t moved at all even in this bull run (I was in paper loss all throughout and only now its breaking even). Should I sell it?
    6. Another stock that I bought 1 year ago has trebled. Should I sell it, as I’m now uncomfortable with its valuations?

  2. “All the gains of a bull run are wiped out in a bear run. How will compounding work?
    Pattabhiraman Murari of http://www.freefincal.com should answer this question. I have no clue from where people get a feeling that over a 30 year investing ‘r’ has to be positive in all the years. If really ALL the gains of a BULL run are lost in a bear run….the index would still be at 100, right?”

    Subraji, question is regarding ‘n’ number of years, not ‘r’ the rate of interest.

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