‘This time its different’ – is used so often, but rarely believed!! See the run up in banks?

• History may not repeat, but it does rhyme, and hey IT COULD REPEAT!!
• Saving, Speculating, Trading and Investing have different meanings in English language please!
• Risk and Return – manage risk and return follows. Chase returns, risk follows!
• Understand Maths? a 30% fall hurts, and a 30% rise does not come to the original capital, it takes more!
• Co-relation means just co-relation, not causation
• Statistics is an analytical tool, not a forecasting tool
• We love to find patterns where none exists
• Asset allocation is more important than fund selection or stock selection
• Indexing works EVEN IN INDIA, you need to know how to analyze the date
• When comparing Index funds to active funds TAKE dividends into account
• Sadly the index does not get dividends, remember funds do
• Our behavior biases are far far more dangerous than markets gyrations
• Learn to relax – investing is NOT easy, let me repeat that. Investing is not easy
• Personal finance is more about PERSONAL than about finance
• Complex instruments are not really understood even by the people launching them
• Complex instruments make money for manufacturer, distributor and client – in that order
• BFSI hates you, but loves your money
• An investment plan can become a disaster is it doesn’t line up with YOUR understanding, goals, objectives and risk tolerances.
• Understanding a plan and implementing it to the T is not easy
• Listening to advice includes hearing, understanding, implementing, monitoring and discussing feedback
• Risk is far more complex than you think
• Manage risks first – return is just the outcome – doesn’t have to be ‘managed’
• We know much less than what we know
• We think ‘our faculties’ will NEVER slow down, though we see OUR BODIES slow down
• We see our parents age and think we will not need support in OUR old age. We are awsum people!