Dangerous Financial Advice: What Happens When You Start Playing Diwali Inside Your Head?

by Vinaya HS on November 8, 2007

in Finance

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You get a truckload of expert, but totally lame, advice. For example: This Diwali, invest in equity without risk (a must read).

To summarize: I start with INR 500,000. At the end of three years I still have … surprise … INR 500,000. In between, I speculated (actually, gambled) INR 88,000 by dumping it in a mutual fund, believing that the past is “the indicator” for the future. If the mutual fund turns out to be a genuine circus monkey, so what? Remember, I just made 0% on INR 500,000 in three complete years! Yay! Just look at my financial wisdom.

But here’s what I would do: If I had INR 500,000 today, I would straightaway put it in a five-year fixed deposit and earn 9.50% interest (as on today). At the end of five years, I’d approximately have INR 787,000.

It’s a classic case of “Yaardo Duddu Yellammana Jaatre.”

What do you think?




Thanks for reading this article. I'd love to hear your opinion. Please use the comments section below to share your thoughts. I frequently write new articles that also cover several other aspects of personal finance including credit cards, financial goals, health insurance, income tax, life insurance, mutual funds, retirement planning, and much more. You can Subscribe through Email and receive new articles directly in your Inbox or you can Subscribe through the RSS Feed and receive new articles in your feed reader.

{ 3 comments… read them below or add one }

Notary November 13, 2007 at 2:02 PM

Well, All I can say is
ROTFL

Anoop December 4, 2007 at 3:06 PM

I dont really understand, if im investing 4.12 lakh in FD & rest 88,000 in Mutual fund, & at end of 5 years im left with 5,00,000?. what exactly is the point of investing 88,000 in mutual fund? & what happened to FD interest for 4.12 lakhs..Im struggling to understand this..
Could you please advise?

Vinaya HS December 5, 2007 at 12:48 AM

Read that article I have linked to and you’ll know what’s happening.

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