https://twitter.com/androidashu/status/1027790626945945601?s=19

 

 

Recently I was sitting in my broker’s office, talking to some other clients about their views. Most of them are day traders.

There I saw One Another Gentleman sitting. So I started talking to him. He was there to buy some mutual funds. It looks like it was his first time. So I just gave him some Simple advice: Add Liquid Fund. Keep investing attached to target or goals. And Some small tips about the exit load.

The next day when I went to the broker’s office, I realized that the man with whom I was talking left it undecided, thinking that personal finance is complicated.

I am damn sure my broker confused him to get him to start SIP. Miss marketing is wrong marketing at its best. But we can’t say anything to them.

Though CFA Student and Finance Blogger, I am a Financial Planning student and a Strong Portfolio theory advisor.

Before writing this, I wrote about Financial Advisor and Mutual Fund and ETF and Investment policy statements.

But still, I believe that this is all theory.

I am living in India. $6490 is our average Per capita income. If you remove Govt employees, PSU employees ( That is, salaried people with small savings kitty remain), IT guys, and a new class of people called STARTUP guys for whom their startup will die or live, they will make money, and I am damn sure that this number will be pretty low.

I live in a semi-rural city where you can see Farmers with their bullock cars, and at the same time, we have India’s most significant jewelry shop ( Here on Google map ). I am living with people living paycheck to paycheck, and I am also living with people with BMWs in my city. So I can tell you what’s happening in India as I believe that my city is a perfect example to test India when it comes to income diversification.

My question is, Even though we are talking about vast inflows of Equity to Mutual funds, what is classification. Who is investing? are they aware? When I spoke about it in the past With Manoj Nagpal, he said that it’s easily possible to classify, but no one is doing it. I believe that AMCs are misselling by showing Sensex figures and how large they are. But, most of them are ignoring something called Personal Finance. So the picture is a bit muddy when it comes to financial literacy. Rajat Sharma, another analyst, and advisor, perfectly mentioned that picture is worse.

How many of these people know that you only need to invest the amount you do not require for the next five years? Now By keeping this in mind, will you advise investing in MUTUAL FUNDS to someone earning 500 rupees per day. That is less than $7.5?

Yes. Our govt thinks that Spending 32 Rupee means that you are not poor. But the tragedy is while writing this large part, around 20% is still below this. There is unemployment. ( Yeah, that is not my today’s topic.)

We need a financial advisor but how many are going to them, and who is playing the role of a financial advisor. Do we have a Financial advisor sufficient for whatever market there is?

I was saddened that the answer is no. many people don’t understand that even when it comes to marriage, they need a financial advisor. Unfortunately, many HNIs don’t have a financial advisor. But that does not mean you don’t need one.

One day I went to check the financial literacy of some teachers. After asking some questions, I came to know there is no pension. So I don’t know what will happen to them. But it is sad to see that a large part of India is without a Pension. And then, we have some people who think SIP is an asset class.

I understood that we need one class of professionals who talk about sense with full knowledge. But I believe it is impossible as we live in the era of trolls.