Trading and Investing

Investment Advisor: Required Or Not?

You have an amazing smart phone in your hand, what must be it's cost? Below 50,000 most probably. How long will you use it? 2 years or less most probably. Will this smartphone help you through your retirement or child's education/marriage? No. But when you want to purchase a phone, don't you read reviews, ask experts for advise, see your requirements, etc. Imagine Mr. Falana says that there is a new XYZ phone in the market and it costs Rs. 35,000, will you blindly buy it just because Mr. Falana said so? No! You do all the research possible before taking a decision to buy a depreciating asset!

You work nearly 8-10 hours a day, put in your blood and sweat for 6 days a week to earn money and the most important thing in your mind is to somehow save a little bit after seeing off the inflation and save enough to meet your future goals. Right? But most people have goals but are still lagging behind in planning wisely to meet them. For a middle class man it is tough to save first and spend later. So whatever you manage to save has to be smarty deployed in the right assets to both protect capital and grow it too!

Saving money is important, investing the savings wisely is more important.

Then why is it that just because Mr. Falana said that XYZ stock will double in 2 months, you put in all the money in stock not even knowing what the company is all about! You do all research for a phone but no research for you investing your money! And in the end you leave the markets saying only operator makes money and park everything in Fixed Deposits for a meager 5% after tax return.
Warren Buffet has become the richest in the world by compounding his money at 22% p.a. over the past 5 decades. Here's what he has to say:

Please frame this on your wall.

Investing in India is largely done on the basis of a 3rd person's knowledge and people don't even know anything about the stocks they own. In our advisory services we tell our clients what they are investing in, why they are investing and what they should expect from their investments. Your broker wants you to trade more because he earns brokerage out of you. Your mutual fund agent will only pitch the fund that gives him the highest commission. Everywhere, there is a conflict of interest. We are not a brokerage or agent of a fund and thus there is no conflict of interest.

At just Rs. 250 per month we are giving you investment ideas, portfolio allocation guidance and market views to help you reach your financial goals!

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