Today we are launching this Mutual Fund Blog but before you read WHY? – go through short story of our COIN.
Our Re 1 Coin
My sister was born in year 1980; at that time my family received a lot of Rs 1 COINS as gift from relatives and well wishers. My family had options to invest this Rupee in Fixed Deposit, Gold and The New Born Equity-SENSEX. But they had a little understanding of Baby Sensex, the major amount was invested with the other two options.
In September 2009 when Sensex touched 16000 & Gold was also Shining, I just thought what my family gained out of their investments of that Re 1 invested in 1980.
Re 1 invested in Fixed Deposit became Rs 18 (Wow, 18 times!!!)
Re 1 invested in Gold became Rs 12 (Not Bad)
But hey, what about the Baby Sensex? Did someone say Rs 125? Come again…..
Means Re 1 would have grown by 125 TIMES in last 30 years!!!!
Immediately my mind pondered over:
Equity & Mutual Fund investments have done so well, but why investors have done poorly?
Why don’t people plan their financial life?
Why people think financial planning is only about investing in shares, mutual fund or buying an insurance policy?
Why financial advisor sell only products & not build a proper PLAN?
My answer to these questions was to venture in the field of Financial Planning and to use my experience and knowledge so that:
• People are GUIDED in a professional and planned way to accomplish all their FINANCIAL GOALS.
• People are at PEACE when it comes to investing or planning for their future.
Finally I launched my practice & The Financial Literates (TFL) blog in 2009….. now Re 1 had grown 235 TIMES in 35 years. That means Indian investors would have made tons of money but reality is far from this:
- Indians invest less than 2-3% of their financial savings in equity markets.
- FII now own 21% of Indian Equities & more than 40% of free float.
Foreigners believe in our economy & reap the benefits – THINK!! Why my Re 1 is stopped to grow…. When it can grow upto 235 times
Why Mutual Fund Blog?
Mutual Fund & ETFs are great way to invest in equity & participate in growth of the economy. Do you know: 29% of American households invest more than 50% of their financial savings through mutual funds? But if I talk about India – let’s not talk about it.
Ok… Very few people are aware about mutual funds in India & after interacting with them I think even they know very little or understand it in wrong sense.
Last week one new paper had this headline “Mutual funds near Rs 12 lakh crore mark in FY15” – it’s not a small amount but it hurts when the article still points towards such basic things “MFs collect money from investors and later invest the same in various market segments, including stocks, IPOs (primary market) and bonds.” This clearly hints towards low level of awareness.
Finally decided to Launch FundSketch Blog (dedicated Mutual Fund Blog) – this will be managed by my partner Vikas Agarwal. You will see articles & ideas showering from next week. Hope this will be useful – will love to see your comments & suggestions on articles. Must check our journey till this point – click here.
Wish us luck in this new journey!!
You can also read existing articles: