I have done such lessons many a time. So if you are a regular reader some of this may sound repetitive..but they are still worth reading. When you have spent so much time on earth..you have some investment lessons..here

  1. Continuous Out performance is IMPOSSIBLE: Learning from Maddoff. It is not possible for a fund manager to outperform all other funds over all time periods. If Icici Prudential Discovery has performed better than say Hdfc Top 200 over the past 5 years it does not mean it would have beaten the same fund over 3 months, 6 months, 1 year, 4 year…..it may happen, but it is not necessary that it WILL happen. As long as a fund is meeting your objectives, do not bother too much about relative performance – or relative out performance.
  2. Saving is difficult, Investing is easy: Many people do not invest BECAUSE they cannot save (or spare) that small amount every month – Rs. 500 or Rs. 50,000 – whatever. So if you started EARLY and saved instead of investing (means you did a RD instead of doing a SIP) you are still smarter than your friends who did NEITHER. Once you set up a habit of saving 5k a month…converting that fixed deposit or starting a SIP instead of a RD is easy. At least you know how to save.
  3. Between starting early and starting late, starting early EVEN IN A WRONG fund is a better option that you committed to.
  4. Any way that you invest (or worse, not invest at all) there is risk. Risk of inflation, concentration risk, holding in single name without a nominee, …risks are there in every corner if you invest. Sorry, there is risk EVEN if you do not invest.
  5. People look for big risk avoiding techniques without bothering to see that the signed cheques are not lying around, making a son or daughter a joint holder without checking whether the son/daughter has given any bank guarantee, giving guarantees to friends who have not repaid loans, …the list is endless.
  6. Risk management is not easy. Why even investing is not easy, but many people think they can handle it themselves – I have seen successful DIY as well as unsuccessful DIY…
  7. Investing is all in the HEAD – 90% of investing is in the head…and the other 10% is mental !!

Some hard and lovely investing lessons

http://www.subramoney.com/2013/01/some-hard-and-lovely-investing-lessons/

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  1. An ardent lover of old songs is never bored listening those songs any number of times. The take from this post is:as long as a fund is meeting your objective, do not bother about relative performance.

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