2015: Subra I wish to invest in the markets, I have NEVER invested, and I have about Rs. 30L to invest what should I do?

Subra: Do a STP of Rs. 2.5L over 1 year.

She: Subra this is over and above the Rs. 1L I am doing from my salary?

Subra: Yes.

2017: Subra my Rs. 40L investment has grown to Rs. 52 lakhs, that is a good investment no?

Subra: I am sure.

She: Now I have another Rs. 2 crores from a property sale in Bangalore can I invest it lumpsum?

Subra: No. In fact the risk in the market has increased and since you have only a 10 year view, I would suggest Rs. 10L a month over a 20 month period in a combination of a Low duration debt fund and a good balanced fund with about 30% in debt – a STP.

She: Why are you so conservative? If I put in all the Rs. 2 cr in the same funds OR in some more mid cap and micro cap funds will I not get a better return?

Subra: Yes of course, you could but it may not happen that way. Remember in 2015 you had ZERO exposure to shares, not you have some exposure to the E market, some to debt market and very little of bank fixed deposits. Sure you are earning very well and are in a profession that has no recession, but you cannot afford the risk.

She: What is the risk Subra? Just as you said I am getting better returns than bank fixed deposits..so why not convert all my assets to mutual funds?

Subra: No, not mutual funds but to E mutual funds and Debt mutual funds. 2015 to 2017 July is a very small period in which to judge the market and decide that life long the same thing will happen. It will not. It may, but it may not. You need to ask “then what happens?”. You have a property in Bangalore and I would suggest selling it – HOWEVER, it is your call about having to sell it at a small loss as the market is tight. Having said that the market may go to 40,000, or 50k or 80k – over the matter of next 10 years. I have no clue.

She: but you are the expert and in the last 4 years YOU have never sounded unsure of yourself.

Subra: It still took you 2 years to start investing, doc!

She: Subra if you cannot predict markets what do you do?

Subra: Good that you asked. I read, I write, I talk, I invest, trade, speculate, and do some training. These days all over India.

She: but Subra if you trade, why cannot you trade for me?

Subra: Good that you asked this too. I hate to be driven by targets, etc. I am happy doing my own trades and BEING ANSWERABLE only to myself.

Simple, but ‘Santhushti hi sampathi hai’. Simple no?