What Investment mistakes you made that you want others to avoid?

becool773 said:
Read up Japan's lost decade. My point is it will be hard for people, including myself, to stay invested if it goes on for so long.
Click to expand...
Japan is an extreme example. Their economy is so strong they charge people to keep money in the bank instead of giving interest because they don't need the funds for economic growth. Not the case with India. We are a bunch of overpopulated inquisitive impressionable noobs who want to buy everything that is dumped here. That is why MNCs are so interested in invest in India. We are the largest fastest growing economy in the world right now.
 
Rockfella said:
Japan is an extreme example. Their economy is so strong they charge people to keep money in the bank instead of giving interest because they don't need the funds for economic growth. Not the case with India. We are a bunch of overpopulated inquisitive impressionable noobs who want to buy everything that is dumped here. That is why MNCs are so interested in invest in India. We are the largest fastest growing economy in the world right now.
Click to expand...

Largest Fastest growing is China dear but India is also doing really well no doubt, we are still 5-10years behind them.
 
nishthecooldude said:
Largest Fastest growing is China dear but India is also doing really well no doubt, we are still 5-10years behind them.
Click to expand...
Largest FASTEST:



China might be way ahead of us including many countries but our growth rate is faster. There are few small countries in EU who grow but they are very small.
1616782688866.png
 
Last edited:
raksrules said:
The lady on call told me 10 working days and told me I have to submit..

  • Adhaar Card Copy
  • PAN Card Copy
  • Policy Original document
  • Cancelled Cheque
  • Request letter
  • 2 forms (available in their office)
Click to expand...
Wait for 24 hours and then send a mail to IRDA. There is no rule of 10 days.
1st page of passbook will also work instead of a cancelled cheque. You will need someone else's, not someone in blood relation, id proof too as a guarantor or something.
Rockfella said:
Japan is an extreme example. Their economy is so strong they charge people to keep money in the bank instead of giving interest because they don't need the funds for economic growth. Not the case with India. We are a bunch of overpopulated inquisitive impressionable noobs who want to buy everything that is dumped here. That is why MNCs are so interested in invest in India. We are the largest fastest growing economy in the world right now.
Click to expand...
Are you sure that Japan is currently having negative interest rates? The last time I read it were few EU countries. This has nothing to do with what I said. The point is debt instruments like ppf etc. are needed to act as a cushion in case the recession is long term.
P.S. We are doomed as a country. Thanks to politics and overpopulation.
nishthecooldude said:
Largest Fastest growing is China dear but India is also doing really well no doubt, we are still 5-10years behind them.
Click to expand...
Atleast 20-25 years behind them. Look at their infrastructure and ev charging station network. And people here are getting excited to see Autopilot work in India. I can bet you with my life even level 2 AD will not be possible here till 2050.
 
becool773 said:
Are you sure that Japan is currently having negative interest rates? The last time I read it were few EU countries. This has nothing to do with what I said. The point is debt instruments like ppf etc. are needed to act as a cushion in case the recession is long term.
P.S. We are doomed as a country. Thanks to politics and overpopulation.
Click to expand...
Good point. I dread a long term recession but more than that I fear not having any corpus. Another simple thing we can do it increase VPF amount to max possible.
 
letmein said:
Please don't get into the fallacy of past results = future profit. Yes Bank is an example.

I own ITC myself, and while it is a good defensive stock, it is not for everyone. You need to ask why almost every stock in the Nifty 50 peer group has been outperforming it.
1) Failure to spinoff other businesses like FMCG or Hotels, causing a drag on the stock
2) ESG investing is gaining ground, maybe not so much in India, but it will cause FIIs to reevaluate holding in what is essentially a tobacco company.
3) Most investors are attracted to it because it pays a steady dividend. To me, this is the biggest red flag. Government run PSUs act like this because they don't care about the retail shareholder. A company which is growing should not pay a dividend, instead it should reinvest the profits into its business. Sadly, I think management has run out of ideas or are happy with status quo. Unfortunately, India does not have a strong activist shareholder base, else the current management would have been long gone. Not to mention that dividends are the least tax-effective way of rewarding shareholders.

There was an excellent 'Open letter to ITC Board of Directors' that I read on a blog a few months ago. If I find it, I'll append it to my post. It stated quite eloquently what is wrong with ITC and its management.
Click to expand...
ITC is still a good avenue for investment.
1. There's nothing wrong with being a tobacco company. The government do make sanctions on the business at times but do you think there would ever be a drop in demand?
2. Cigarettes are 45% of the revenue and the most profitable one. FMCG, Hotels, Agri priducts and Paper are not doing great profit wise but they do make the business diversified.
3. The ROCE, ROA, ROE numbers are splendid! Its profits are immense and quite stable. They do not need to reinvest their profits very aggressively to create more business and I'd take the dividends in that case..
4. Every stock price has two components - fundamental and speculative. Speculative component is how the market sees it growing regardless of its underlying value. After all, the market decides the price in the end. This is where it is lagging. But as long as the business is sound, it is as you say, a great defensive option to keep in your portfolio.
 
SIP! You either get more units alloted or you enjoy benefit of increased per unit value. So there is very little absolute risk unlike in case of other equity/MF investments.
 
nishthecooldude said:
Please share the source url and target countries? I doubt China is in the list altogether
Click to expand...
China is a giant and way ahead of us but our growth rate is faster and we have more potential to grow as we are a developing economy.
becool773 said:
@Rockfella bhai our growth rate might be faster. But keep currency exchange rate in mind.
Click to expand...
Bhai vo non-controllable variable hain kya kar sakte hain uska.
 
VivekSood said:
Bhai vo non-controllable variable hain kya kar sakte hain uska.
Click to expand...
Then we shouldn't highlight the fact that our economy is the highest growing one in the world. In real terms, USD terms, we aren't growing much. Even countries like NZ are way ahead than us. Oh and we can control the exchange rate, provided we had some competent fm.
 
becool773 said:
Then we shouldn't highlight the fact that our economy is the highest growing one in the world. In real terms, USD terms, we aren't growing much. Even countries like NZ are way ahead than us. Oh and we can control the exchange rate, provided we had some competent fm.
Click to expand...
We don't have so what choices are we left with?
 
letmein said:
???
SIP is just an automated lumpsum investment. All the SIPs in the world won't help if the underlying fund itself is bad or risky.
Click to expand...
Ah is it? I learned that the least risky method of investing in markets is through SIPs. Which is the lesser risky method then?
 
letmein said:
???
SIP is just an automated lumpsum investment. All the SIPs in the world won't help if the underlying fund itself is bad or risky.
Click to expand...
Each fund consists of multiple stocks/holdings. Although it is possible for one stock to go bad an event of all stocks going bad in one mutual fund is extremely unlikely. This is why MFs is safer than direct stocks. The risk evaluation/moving funds around is the job of the fund manager. If you one stock and it fails you loose money. Example: PC Jewelers.
Example: AXIS Long term equity fund:

1617016734000.png


Stocks this fund invests in:

1617016796967.png
 
VivekSood said:
Each fund consists of multiple stocks/holdings. Although it is possible for one stock to go bad an event of all stocks going bad in one mutual fund is extremely unlikely. This is why MFs is safer than direct stocks.
Click to expand...
True and SIP takes this one step further because on the date of making payment, if the entire fund value has gone down, you willl stilll be allotted more units. So, in the end your risk of falling hard is substantially reduced since averaging factor kicks in.

@earlier poster, Underlying fund risk is always there. If you are so scared then you have only few options like post office and senior citizen savings scheme I think.
 
Kmkaks said:
Beg you guys to stop making it political. Please.........
Click to expand...
Appreciate the point, it gets annoying in many places, but -

I believe for personal finance & investments - politics is an important variable.
I am not saying we should discuss it, but one should keep in mind things like geopolitical risks, currency value, economic policies, capital restrictions, etc in mind. These can have a nontrivial impact even on an individual/family in a multi-decade timespan. Our brain is very good at recognizing and responding to immediate risks, but insidious ones go unnoticed.

At the end of the day, we are all trading our only irreplaceable resource time for something else, whether one wants to optimize for a local maximum or a global maximum should be a carefully thought-out rational decision.
 
Kmkaks said:
SIP! You either get more units alloted or you enjoy benefit of increased per unit value. So there is very little absolute risk unlike in case of other equity/MF investments.
Click to expand...
People seem to be more regular with SIPs as once started there is always this thought in mind to keep the monthly SIP amount aside every month just like EMI. Results in a more discipled approach overall. I have multiple SIPs of same fund for as low as Rs.1250 debiting my account at different dates of a month.
Kmkaks said:
True and SIP takes this one step further because on the date of making payment, if the entire fund value has gone down, you willl stilll be allotted more units. So, in the end your risk of falling hard is substantially reduced since averaging factor kicks in.

@earlier poster, Underlying fund risk is always there. If you are so scared then you have only few options like post office and senior citizen savings scheme I think.
Click to expand...
In that regards the best thing is to simply increase VPF to max % 88 (might depend on your employer not sure) of your basic salary. Currently at 8.5% IIRC. Way better than FDs.
 
Back
Top