I  could have titled this article a little differently too:

• Do you need a financial planner?
• Is there corruption in the Mutual fund industry?
• How do doctors earn money, really
• Is there corruption among professionals in general?

My answer to all of this is ‘I do not know’, but let us look at the problems of an ordinary investor. He has various sources of ‘data’ or ‘information’ – blogs, television, websites, etc. Sadly all of them are selling something to him. Almost all of us have some retail product to peddle – if nothing Google ads, or training sessions, books, or at the least, ‘influence’  – the highest point in the Maslow’s need triangle. Not money, just to say ‘you know 9048 people visited my website yesterday’. ‘Vidya Garvam’ – at least this.

Now all articles about ‘do you need a financial planner’ are written by a financial planner. Do you expect it to conclude saying ‘therefore you do not need a financial planner’. I have strong views on financial planning, and this post is going to be neutral. So do your shopping elsewhere about needing a financial planner.

In a country with so much corruption, do you honestly think that all fund managers are honest? How about doing some investigation? You really think the media will do it? You think the corporate communication head will allow any channel to run the story beyond the first ‘breaking news’ kinda hot news? Really? You guys got to be joking 🙂 it does not happen that way folks. It just does not.

Do promoters bribe fund houses to buy their shares? Do they? who will answer this question? Will they ever be called on TV to be asked ‘which promoter asked you to buy this shit..and continue to hold it?’ – this is so dangerous that the younger managers do not even whisper against the ‘branded’ and ‘big’ fund managers. Even the sales team of the Md of the fund house keep silent even when they know…Many of them have a standard of living far, far beyond what you think they do?

No comments on other industries where I do not have enough knowledge in depth.

Will the main stream media EVER take up such articles? or will they take such articles to its logical end?

Have you seen ANY analyst report in public talking about capital allocation by the Tata group, ITC or LnT as a group? No.

You really think that today’s IPOs are going to give you 20% cagr over the next 20 years? Really?

no. the cream and the juice is being taken by the Private equity guys – no I am not blaming them, I am just saying, life is going to get more difficult for the serious investor.

In this scenario trying to invest in direct equities or even in complicated mutual funds will not be very easy. Do not try some of these tricks – which is being done by the experts. Be careful, that is all.

There is no way how you can know  whom to listen to. If you want good advice by a good adviser with decent intentions and competence, tell me why should that guy give it free?

So free advice is given by people who tell you “this worked for me – so it will work for you” or “do not worry equities will give you 19% return” or “in the long run equities will give better returns than debt” – following up with “it has been so, hence, it will be so”.

If that is going to take you to your end point, God bless.

“Assets which do not have a market value are not your assets – your old vcr, your a film camera, etc. go out off the list of assets you have”.

#Youcanberichtoo