Markets are never risky. Some of the shares are risky given their price. Risk varies with price, does it not?

Let us see some of the risks at this point in time….

1. We have been lulled into a very low interest rate regime in the world. We have no clue what will happen when interest rates go up. Especially if they go up fast.

2. The Indian banks, especially the psu banks have a pathetic appraisal process. You see how poor their understanding of business is when you see them lend. Forget the Psu bank’s having a big NPA (that is priced perhaps) I am worried about the NPA in the private sector banks.

3. Investors expectation form the market is too high. On the back of a 25% growth EVEN fund managers are talking of a 12% growth. My foot. If the market sustains this level till 2016 March, we should still be happy.

4. Cappro (capital protecting funds) is being pushed so hard it is difficult to believe. The kind of models that are being pushed are so bad, that a lot of clients will lose a lot of money. Amazing thing is many of them do not realize this.

5. The amount of PRINCIPAL risk that people are accepting in their DEBT portfolio is stunning.

6. Thanks to the jump in the indices, many many investors think that ULIP is a good product. Well, it works for some banksters.

7. Financial innovation has never been too good or even necessary for the investors.

8. Lack of financial literacy is a killer. BFSI has created products which many investors cannot understand. Amazing that it is the HNI who is happily lapping it up. Butter works!!

9. Is there any single big risk in the market? Over the past 500 years it has been the same: Greed.

….lets close at 9….

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  1. Subra Sir,

    Same question, what is wrong with cappro funds?

    By cappro funds do you mean CPOF funds by icici and hdfc which invests a part in equity and rest in debt/money market?


  2. Point 5 results due to Point 8.
    Financial awareness should happen from School. Otherwise, it is always alien subject for hard core guys.
    I felt very difficult part in mathematics as Interest calculation in my school days. I would love rest of the parts.

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