I do many of these things and keep wondering how to charge for it…However if you do have a FA he should do the following for you: 1. Do not choose that instrument: He should have the guts and knowledge to say what kind of financial instruments YOU as the client should not touch. This […]
Ralph Nader said about General Motors long ago. I am saying this about the Indian Equity markets, now. The problem with investors, wannabe investors, scared of the market investors…is they keep learning, but most of the times the learn the wrong lessons. ‘I have made money on ESOPs’: Well if you had Esops of Indiainfoline, […]
The Sensex may have given 19% returns over 33 years, however it may not have given 19% in any particular year! This is fairly simple – the standard deviation is quite high, and good years are followed by bad years. Simple. In the year 2011 the sensex’s performance looks bad because of the poor […]
NPS (New Pension Scheme) was bad – I have rubbished it enough, but as if all that was not enough, the Parlimentarians have tried to make it worse. Why should a fund management company have only 26% FDI beats me. Stumped is the word. In the 1990s we allowed 100% FDI in Mutual funds, […]
I have not been a great lover of the NPS for various reasons. One of the important reasons is that we do not have an index bond fund – so it is up to the Fund manager to decide what to pick. I hate that when I do not know the FM’s bond picking skills. […]
The average return on equity investments (without reinvestment of dividends) is about 18% over the past 31 years. Does it mean that every year you got 19%? The answer is no. Such ‘zero standard deviation return’ is possible only in CERTAIN debt instruments. In equity investments there have been years of +242% as well […]
Well well. Once upon a time long long ago we heard about Arithmetic Mean, Geometric Mean, Harmonic Mean and Standard Deviation. Then we promptly forgot how to use them. People keep asking me ‘When should I use AM and when GM? For relationship managers this is a very important question. AM is very useful when […]