Investing and Finance

[rohitvatsa]

1. IMO institutional investors should allocate a portion of their money to risky assets like Start ups. Like may be minimal 1-5% of AUM. We need more such start up investors. I don't know any big investors except Infoedge in India. While China has many like Tancent, Ant Financial etc.
2. About safe debt deposits, the current inflation rate is some 7-8%. The ground level is more than 20-30%. See oil and gas price. Without generating Atleast official rate of 7%, you are actually losing money. FD rates for 1 year is only 5.5 now. People need to move towards high risk high return assets like equity like they do in US/Europe and Japan if aim is long term(10-15 years). That will generate Atleast inflation beating wealth.

Well what you are saying looks right on papers but don't forget that in India the high risk assets do not only come with risk due to market and economic climate but also due to fact that there are high chances in india of financial frauds even with companies who have decent track record and there is little or no protection for shareholders especially the retail.Take for example the case of Yes Bank and Rana Kapoor,the company's actual financial misery came into picture only when Rana Kapoor was refused extension of his tenure as CEO of Yes Bank.Even his successor Ravneet Gill painted a very rosy picture till the very last days while the Insider Trading was in full bloom in the company.What happened after that?Rana Kapoor is in jail and is likely to bail pretty soon.There are rumors that his company is likely to take over some SFB and once again start the entire circle of deceiving shareholders.And all this time the credit rating agencies were putting Yes Bank in green even though the bank was on verge of liquidation.Bottomline is we need more stringent financial rules if we want people to trust the Share market.

 

[A^00P]

I think there are 2 reasons

1>Financial literacy specially related share markets/mutual funds none one who has not study commerce wont understand terms easily so every one would invest it in safe bet like bank deposit and FD.

2>Financial scams and gov/judicial failure to prosecute and bring justice early.

@Itsme...

Why not start thread for financial literacy...

I know there are tons of website and the problem is there are tons of website ... IF one get edu at one place in simple and lucid language then it would better .Consider it

 

[Sparker0i]

1>Financial literacy specially related share markets/mutual funds none one who has not study commerce wont understand terms easily so every one would invest it in safe bet like bank deposit and FD.

This is probably the biggest reason why I've turned on auto-debit for MFs and don'treally care to look at it.
Most of my investing now happens 50:50 between MFs and Crypto, because they are far easier to understand than stock market right now...

 

[rohitvatsa]

This is probably the biggest reason why I've turned on auto-debit for MFs and don'treally care to look at it.

Most of the MF managers barely look beyond the obvious stocks.This will help in a bull run but concentrating merely on HDFC twins,TCS and Reliance is not a good sign from a MF manager.We don't need a MF manager to tell that these are the stocks we should invest in.

 

[Itsme...]

Most of the MF managers barely look beyond the obvious stocks.This will help in a bull run but concentrating merely on HDFC twins,TCS and Reliance is not a good sign from a MF manager.We don't need a MF manager to tell that these are the stocks we should invest in.

Among popular funds only blue chip funds have these HDFC, TCS as their biggest allocated stocks. Others multi/Mid/small have better return stocks. That's said the point behind investing in MF is that you only need to review it once, twice a year. Not every month/quarter. If it is index, then once is enough. But individual stocks need to be reviewed every quarter Atleast. Most young people don't have time to evaluate entire portfolio of 10-15 stocks every quarter. Best way for them is to invest in MF.

 

[Itsme...]

This is probably the biggest reason why I've turned on auto-debit for MFs and don'treally care to look at it.
Most of my investing now happens 50:50 between MFs and Crypto, because they are far easier to understand than stock market right now...

Crypto 50? Wow.. you could be billionaire in a year or two. Or you could be...I don't want to say.

 

[Sparker0i]

Crypto 50? Wow.. you could be billionaire in a year or two. Or you could be...I don't want to say.

Risk hai to ishk hai...
I had started long back in a very small amount, but started actively only this year. On that small initial amount, I made more than 8x returns...

 

[Itsme...]

Well what you are saying looks right on papers but don't forget that in India the high risk assets do not only come with risk due to market and economic climate but also due to fact that there are high chances in india of financial frauds even with companies who have decent track record and there is little or no protection for shareholders especially the retail.Take for example the case of Yes Bank and Rana Kapoor,the company's actual financial misery came into picture only when Rana Kapoor was refused extension of his tenure as CEO of Yes Bank.Even his successor Ravneet Gill painted a very rosy picture till the very last days while the Insider Trading was in full bloom in the company.What happened after that?Rana Kapoor is in jail and is likely to bail pretty soon.There are rumors that his company is likely to take over some SFB and once again start the entire circle of deceiving shareholders.And all this time the credit rating agencies were putting Yes Bank in green even though the bank was on verge of liquidation.Bottomline is we need more stringent financial rules if we want people to trust the Share market.

Risk is there even in those debt funds of banks. PMC bank went kaboom. PNB could survive only because it is a PSB. Compare to all those, for long term investment, MFs have better risk to return ration IMO.

 

[Itsme...]

https://twitter.com/x/status/1438844698643222528

Source

 

[Sai Jai]

No investment (without a risk) like FD gives 8% interest now.

Exactly .. Maximum 5% now for common senior citizen by .5 more that's it .. that's why I moved all my investment into sip & mf ..
SBI balanced advantage fund is saviour for me giving assured 8% returns per year