The economists of the world make on amazingly stupid assumption: “Man is a rational animal” and this leads them to a belief ‘therefore he will do things which are best for him’. This means he will: a) choose the most profitable options – financially rational b) he will take a long term view of things […]

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The most maligned person in the financial service space is the distributor. It is he/ she who provides the last link between the financial product manufacturers and the end investor. Let us describe the typical distributor: He earns about Rs. 2-3 lakhs a year (a decent MBA would not EVEN consider looking at such a […]

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“Invest like Mukesh Ambani” or “Invest like Warren Buffet” or “Vallabh Bhansali”…are all very sexy and very very media like advice. And typically stupid, wrong and impossible to implement advice. Do not even read such articles further. Face it. Whatever it is, in this birth you are not Buffet, Ambani, Jhunjhunwala or Bhansali. Fact is, […]

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As usual, I do not have an answer. However I can lead you to the definition of “Irrational Exuberance”…I hope at least some of you know its association with Alan Greenspan! Well this is what it means: When all people believe that: •    The reward will outweigh the risk •    This time it will be […]

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Recently saw a ‘reputed’ group promoted life insurance company treat its employees shabbily. Norms were made to sack people. So a large scale sacking happened. When the large scale recruitment and branch opening was happening we were at the side lines saying ‘chuckle, chuckle…’ Now we cannot say chuckle, chuckle,…because a few thousand jobs have […]

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Dear Sir, I have just retired. I do not have any pension and have got my provident fund settlement from company of Rs. 25 lakhs. I would like to invest it in a safe, risk-free instruments and also get good returns. Pooja Jayaraman Typical Media answer: This is your life time saving, and you are […]

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Goal setting is something which now everybody seems to be doing. However it is not possible to do any kind of Goal setting unless it is internal to you! So why can I not set goals for myself like say a Mukesh Ambani (perhaps) does for himself. Simple – internal to me, but I am […]

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