Do I think I can hit better cover drive than Virat Kohli? Do I think I can be as consistent as Roger Federer? Do I think I can win medals like Usain Bolt or Michael Phelps?
No, this is unthinkable and impossible. Right. A layman investor don’t have skills, have not been trained etc. etc.
Then, why do layman investors think they will be able to beat professional fund managers in stock markets? Prashant Jain, Sankaran Narain, Anand Radhakrishnan and many others are best equipped to manage our hard earned money and create enormous wealth.
1. They have the relevant education background, a layman investor don’t.
2. They are supported by professional team, a layman don’t.
3. They often visit management of various companies, a layman don’t.
4. They understand balance sheets and economic complexity, a layman don’t.
5. They have huge corpus, a layman don’t.
6. They are benefitted by mutual fund being a pass through vehicle hence not liable to tax, a layman investor don’t.
To cut the long story short, the dice is loaded heavily in favour of professional fund managers. It is a no brainer to employ the best brains in the country to manage our hard earned money and concentrate on what we are better at.
What do you think?