A couple of weeks ago I was on ETNow with Ms. Kapasi. One caller asked me “I have invested Rs. 25L in xyz mutual fund, Rs. 29L in abc mutual fund….and it totalled Rs. 2 crores. Ms. Kapasi turned to me and said “Rs. 2 crores and he wants advice after investing”.

I must admit I was stunned too. My advice to him was “go get an advisor”.

We are such idiots that we over estimate our ability to help people. If a person has a heart attack we admit him to the hospital. WE RECOGNIZE OUR INABILITY TO HELP HIM. However, if a person tells you “RG is going through bad times and is going through a depression”, we think it is all right. I heard one classmate tell us “you should keep your mind all right..and things will be fine” – believe it or not he himself has gone through depression, has sought counselling, has taken medicine – BUT FEELS IT WAS JUST A WASTE.

We think we are doctors, dietitians, counsellors, sports coaches, investment advisors  – what have you.

It is important for bloggers, authors, journalists, fund managers, ceo, sales heads, relationship managers, etc. to realize that we are incompetent to do a lot of work. Most important among them is “investment advisers”.

Personal finance is more about the ‘person’ than about ‘finance’. For example if a 21 year old has to travel a lot (air travel) I would give that kid an addon card – of Hdfc Diners Black – with a sub limit of Rs. 10,000. However if she has only local spending I would give her her own card with a limit of Rs. 10,000. See the difference?

Similarly if I knew that a person I love has a substance abuse problem (alcohol, drugs, tobacco) I would speak to that person in a non judgemental fashion and suggest meeting a doctor.

RECOGNISING MY INCOMPETENCE in many many fields is the best thing that happened to me. It means I realize the need (and importance) of a swimming coach, a gym instructor, a running coach, an IFA, a CA, a gen physician….How many I engage and how much use I am able to derive from them is a different matter, but I CAN UNDERSTAND THE NEED for different coaches.

So when people ask me “Can you do a review of my portfolio”. My answer is yes of course, but remember setting it right requires a competent advisor. I am not one. I know a lot of things that an adviser does, but I am not competent to give you advise, BECAUSE I DO NOT KNOW YOU. So I do not want to give you sincere, correct advise. I would review your portfolio and then direct you to an adviser who is doing this full time.

Why would a person investing Rs. 1000 a month in an sip not seek the help of an advisor? Why would a person investing Rs. 2 crore lumpsum not seek the help of an advisor? I seriously do not have an answer, do you?