“There are two kinds of investors, be they large or small: those who don’t know where the market is headed, and those who don’t know that they don’t know. Then again, there is a third type of investor – the investment professional, who indeed knows that he or she doesn’t know, but whose livelihood depends upon appearing to know.”

The problem is no doctor has been able to charge a fee for prescribing Anacin or any other paracetomal right? Similarly the IFA is expected to know the following:

  • will equities out perform debt over the next 2 months, 2 years, 2 decades, 2 centuries.
  • if equities will give ONLY 12% RETURN over the next 12 years, why is a taxable bank FD giving 7.3% p.a. so bad?
  • if equities will out perform will it be micro cap, small cap, mid cap or large cap
  • what asset allocation to equity should I DO?
  • last week the market fell 450 points..why did you not ask me to withdraw?
  • last MONTH the market went up 930 points..why did you not ask me to invest MORE?

Let me clarify..no IFA, repeat IFA will be able to answer these questions. Honestly the only thing for the IFA to answer is ‘I do not know’.

Unfortunately he thinks he will lose the business if he does not answer this question..so he answers them.

According to me…of if I am asked these questions, my honest answer would be ‘I do not know’.

If not satisfied, I will give a 1000 word post as a reply…or ‘@#$%^&((()**^’ – again unprintable…!!!


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