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?
3 thoughts on “Dangerous Financial Advice: What Happens When You Start Playing Diwali Inside Your Head?”
Well, All I can say is
ROTFL
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?
Read that article I have linked to and you’ll know what’s happening.