Rahul Dravid, former captain of Indian cricket team and coach of the Indian under-19 cricket team, said “yes”. Has he got it, since many people compare investing in stock market with gambling in casino? Evenone of my clients, compared stock investing with same gambling played by Yudhisthir in ancient times of India(Mahabharat)!!
While gambling at casino, risk is calculable but investing in stock market is certainly complex as businesses and economies are ever changing and uncertain. Unfortunately, people do not like uncertainty and tilt towards Security or behave to earn extra ordinary return from investment.
40% return or 25-30% return(as mentioned in my write up of February, 2018)is very risky and not sustainable for a longer term. Whether it is well managed PMS (Portfolio Management Services), direct investing into stock market or any type of asset class, higher returns means higher risk. Please note that as returns go up, the risk(of capital loss)goes up too. Rahul Dravid, lost Rs. 4 crores out of Rs. 20 crores invested when he said “yes” to above proposal!!In 2008,Americans tried to earn extra-ordinary returns from Real Estate leading to sub-prime issue and collapsed the economy. Whether it is American, Indian or any individual, it is said that most of the people are illiterate as far as investment is concerned. There is a book every year getting published by Mr. Shanbhag titled “In the Wonderland of Investment”!!Just start investing with your goal in mind and have assets allocation from new year starting from to-day and say “No” to extra ordinary returns
Pl. notes that I am sending this write up to all my clients across the globe using mass media communication technology. Incase these comments are not applicable/acceptable, you may please ignore the same.
