There is a complete MAFIA out there which will tell you what to do NOW. Then later on (say in 2022) tell you PRECISELY why you failed. Using their own products. Precisely that too.

Lets take some examples. When  interest rates are at an all time low or equity markets are at an all time low they will lock you in on products like FMP. No, not fixed deposits – there is not enough incentive to sell fixed deposits you see.

Reminds me of how Monsanto chemicals the Cancer king is now making a comeback into the world by using the “good offices” of the Digital Dictator of the world. This DD is using his illgotten (stolen says one Indian doctor, but I will not name him) wealth to carve public opinion. Beware of people who try to steal your thinking. Mostly educated, and rich people do this – “here is a tool WHICH I HAVE MADE which will take away from you the need to think” – guys this shit does not work.

So you can now expect the Mafia to tell you that – Pharma is the new BFSI – and you should be selling Hdfc bank and buying Sun Pharma (caveat I own both these shares). Logical arguments will follow, and you will be impressed. Then somebody will tell you to index your portfolio. Then there will be a quant fund thrown at you. Even better is a math model on Asset Allocation. That AA will obviously have lotsa gold, debt, and of course large cap fund.

Market cap categorization is another intellectual / regulator blessed FRAUD. Seriously, when I see old portfolios (people aged say 90) and if I talk to some of them, they did not ever ever consider market cap as a basis of diversifying their portfolio. Why are we doing it now? It helps the stupid, uneducated, refusing to learn EQUITY SALES MAN.

There are no short cuts. What worked in USA in 1929 will NOT WORK in 2020 in India. You know what is worse? It might just work!!

Many veterans have said “I have not seen the market crash so much in so short a time”. Wake up guys in 1993 we were in the ring – and the client and the broker got time to think about a transaction. Today quants are screwing the markets. To learn you need to read, think and RUMINATE – exactly what a cow does. We can’t get solutions like “Multi cap fund” or “Bal adv fund” or ….

The job of a manufacturer is simple. He has to make the ingredients, not the end product. So a manufacturer should make equity funds, and debt funds. It is for the IFA (by whatever name called) to make the final product for the client. However, this would require a lot of good quality recruitment – in a world made uncertain by the BABOO(N)S of the world. That’s difficult, so they instead decided to make 4000 products and expect the untrained, and mostly uneducated EQUITY SALESMAN powerful. Powerful? yes they equip him with all the SELLING TECHNIQUES in the world. Then they tell him how the client will behave (Pavlov?) by using BEHAVIORAL FINANCE. Then he goes on a hunt – like the rich European / Americah white hunter – who pays a fortune to kill a drugged lion in South Africa and post pictures. It is for you to decide whether you are the hunter, the lion, the hotel keeper, the environmental journalist, the observer, ….to know how much money you will make.

To take an example the Mutual fund is like a shop that makes puri, kurmura, sev, chutney, onion, tomato (procures)…and sells them piecemeal. The trained EQUITY SALESMAN will take the right doses and make bhel, meetha bhel, theeka bhel, sev puri, dahi puri, batata puri,………or whatever. However, this means the EQUITY SELLER has to understand equities, markets, debt, client psychology, client talk, client behavior, client ego, client risk – it is a PAINFULLY long process. Only people who have been doing it for long can bring some sense into this. The rewards are enough for everybody’s need, but JUST NOT SUFFICIENT for EVERYBODY’S greed. You can’t grow your “business” at 10% pa for 20 years. You need to grow it at 20% a quarter for 5 years. Hey you need to sell your business, right?

There is a BIG MAFIA out there which says “we wll make bhel for all of you” – and trying to sell packaged products. Today the product they have on offer is very different from what they had in January 2020.

I hope to do a post on what they will tell you in Jan 2022 when the current strategy (April 2020) fails. Phew.