If I have to go to Bhubaneshwar I am happy to book my flight, and hotel by checking out the rates/ convenience/ timing etc. However when I have to go to Ladakh I prefer using a guide. I am currently using a tour organizer for a trip at the end of the month.

So somewhere I am a DIY, somewhere I need a planner, and somewhere I need a full fledged guide. I know how to do this in travel.

Now the question is what are the options available for an Investor. Does every investor need a full time guide who will help him/her in every step? If they get such an advisor will they listen to all his advice – in every step?

Well here are the factors to look for while trying to become a DIY:

1. You should be interested in the process of financial planning and investing. These are 2 different things and involves a lot of understanding, boring data, some analysis, and knowing what one wants from each product.
2. Understanding risk, return, volatility, documentation for investments, basic law, …seriously not everybody is well equipped to handle all this.
3. Remember many so called financial experts perform poorly in their portfolios, but can hide under “I do not need that extra money” blanket. Be careful.
4. There are too many blogs, vlogs, magazines….which spew shit. Can you read all this/watch all this and maintain your equanimity.
5. There is no “all or none” in an advisory. Many doctors and others believe that you need a full fledged advisor for everything. Not true. You can have a “fee-only” advisor who will answer all your questions. However, in some cases you need to know the right questions to ask.
6. You can write your own Financial Plan, Investment philosophy statement, maintain an investment diary. If you have been doing this religiously for more than 3 years, boy you are on the way!
7. Have the humility to accept that you can make mistakes.
8. Have the humility to have your portfolio reviewed in public or by a professional for a fee.
9. Involve your spouse – and she knows EXACTLY what you are doing and can explain it almost as well as you can. Or involve your kids…ditto…
10. The fees become onerous – if you have say a Rs. 20 crore portfolio and you want it to have all the bells and whistles – you are better off hiring a person to do the admin work and you to look after the intellectual part of the investing.
11. When you realize that the advice that you are getting is not so great, and YOU know more than your advisor.
12. I normally know more than my adviser, but the admin process is too painful and I prefer that the IFA handles it for me.
13. Your whole extended family and friends turn to you for advice…AND THEY LISTEN TO YOU.
14. IF you don’t know ANYBODY who listens to you totally, completely and fully it means you are an expert in a very narrow field – Pms, mf, insurance,…but are not fully rounded.
15. You know to separate the noise from the sensible advice on the web. The ratio is terribly AGAINST you. Be careful.
16. You run a blog and have a very narrow expertise, but people think you know everything. Remember the donkey and the sculptor story? you will find it in my blog..
17. You have the discipline, track record, confidence and Humility.

Now you know. Go ahead, JUST DO IT…