The doctors whom I meet are hesitant to ask questions about money. However some of them feel that the questions that they ask are stupid -because nobody else is asking them. So much so that a book is in the offing….let me enumerate the questions and the answers that I gave:

1. We are 49 in this room can you suggest an investment plan for all of us ‘in general’?

Ans: No. I cannot suggest an investment plan for all. Only thing common to all of you is a) all of you need a financial check up b) you need a financial plan c) you need to create a portfolio d) you need a guiding hand to take you through this journey. And for this you need a good financial adviser.

If I come to you for an eye problem would you operate on me because you have seen my brother’s medical report? or my friend’s report?

Financial planning is like that – each person has to create his own path. Go and chart yours. I can provide you with a map, it is for you to follow. I don’t hold hands…so you need to find a planner for yourself in your own city.

2. How should we go about finding a good planner?

First of all decide whether you need a very detailed plan – for your personal life, business life, etc. If you have had complicated life – marriage, divorce, death of partner, re-marriage – you might need more help. For people with less complicated life, not too much of debt, and willing to learn investing, you may not need a financial planner. A simple IFA who can help you in the investment process is good enough. You should find a good financial planner the same way how I would find a good cardiologist for myself. I would ask my friends, my dentist, my wife’s gynaec, my daughters pediatrician ….to recommend a good Cardiologist. Exactly that way you look for a good IFA. As time goes by you decide whether you need a financial planner to execute your plans. Don’t jump to hiring a planner – without knowing what you want from him or her.

3. But Subra you are investing direct, and so many equity funds are doing so well, why are you suggesting Index funds for us?

Good question doc. Look at my background. I qualified as an accountant, and trained as a lawyer. I then became a broker at National Stock Exchange. When I started investing there were no mutual funds, forget low cost index funds. I was suspicious of MF for a long time when we saw some of their business practices. So I have been qualified and trained to pick stocks. I can see at least 10 equity research analysts, and many brokers on my friends list. I can always cross check my stupid ideas. You cannot. So I am suggesting Index funds. If there are 90 funds in the large cap space Index will always be ranked 10th – or thereabout. If I meet you after 30 years, my answer would be consistent. If you were my client and I could review your portfolio regularly I may suggest something else. So my advice is simple – if you are willing to spend time to learn investing, do stock picking. If you are willing to learn investing with an IFA’s help choose your mutual fund schemes. If you are not willing to do any of this, put money in an index fund.

millions of more questions. Enough for a book. Think of this as a teaser.