I always enjoy speaking with Investors and creating Awareness in them about MF investing. It helps you to understand the mindset of the potential investor and keep you updated with the latest.
Usually a presentation is followed by questions and answers . One of the biggest problems bothering most of the people is “Where to invest their money safely and profitably???” The answer to the above question is not so straight forward but it is not a rocket science as well. Unfortunately this kind of questions are misleading and have conflicts of interest. However, I can think of following solutions which can be useful:
1. First and foremost never copy others in investments. You are unique and so are your personal finances.
2. Never mix insurance with investments. The insurance company may lure you with a carrot of insurance cum investment plan. Please learn to say NO to such plans. Such premium payments neither give you adequate returns nor the right insurance cover. Such plans are only good for insurance companies and their agents.
3. Don’t go overboard with real estate. One house is mostly sufficient. Never over allocate to Real Estate.
4. Indians love Fixed Deposits and Gold. The hard truth is these investments don’t beat inflation post tax.
5. Start investing in Equities as early as possible in your life, invest systematically and for long term. Don’t avoid equities, avoid the wrong approach of investing in equities. Your investment consultant can help you in this.
“Make your money work hard for you and you will not have to work so hard for it.”- Napolean Hill
Happy Investing !