Personal finance is simple. However by saying ‘not complex’ i may ACTUALLY attract more viewers. That is the problem in personal finance. Most people do not show any interest at all in understanding what they have to do.

People can be classified into the following categories:

1. “Subra if you tell me this will work I am fine” : these people are known to me for say 7-10-30 years and do not think that they need to use their own mind at all. To me such people are fine, but am a little scared that in case of my death, they will not really know what to do. A few such people are in their ’70s and ’80s and without much help from others. I only hope that I outlive them. Many of them hope too!!

2. ‘Subra you are right, but I have to listen to my (X) – this X can be father, mother, son, daughter-in-law, doctor….so they end up with a terrible portfolio. They hide their endowment buying till I find out from somebody else. Such people scare me and I feel worried, IF I AM responsible for their well being. If it is a person whom I can do a ctl+alt+del I do that. Some of them are so idiotic that they keep on buying real estate, losing money on land deals (repeatedly??), keeping lots of money in bank deposits, gold, etc. I really cannot do much but just smirk.

3. ‘Subra, I agree with you that I should not buy ULIP but here is a real low cost product so I was considering it for my wife…’ HELLO ..BUT, BUT, BUT…your wife does not need LIFE INSURANCE. She is a housewife, your children are married and settled, what is wrong with you. However the bank RM will be able to get a Rs. 300,000 cheque and a committment for 5 years from a 57 year old man for his 52 year old wife, whose only daughter is married and settled down well. Sigh.

4. ‘Subra I have seen all the choices..but I think there is a role for all the 22 funds in my portfolio. I can actually explain to you why I have a midcap, a micro cap, a flexicap, a……. God, gimme a break. Even tell him the sigma of all these funds is UNDER PERFORMING an Index fund, some people like to have a very long list of growth, balanced, short term, long term , value, growth,…How do you explain to them that the best Value fund is actually called “Templeton India GROWTH FUND” . Label crazy people who will fail a blind test, but hold on to something they believe.

5. ‘Subra..I just cane back from the US..I am convinced that the best way to invest is to put money in an index fund’. Yes but Sir in India the funds that YOU have chosen are performing better than an index fund. No, Subra, I am convinced that Index fund is better than a managed fund. I wanted to remove all my money and put it in a lump-sum in an index fund. Sure Doc, great idea. Next time I need a blood test, I will do it myself.

there are more…but ..this for today..