There are many investors in this little India.
The first category invests money with no knowledge of how it is being used, tenure, risks, returns etc but just are part of the ‘herd’ which keeps moving in and out of investments based on folk lore and general statements.
There is a second category who keep listening to advices on Television, believe all their words and keep doing the same things first category does but with an exception of believing they are following the professionals and is bound to be true. There are some deadly words used called EPS, PE, transaction analysis etc.
There is the third category who believe that they can make 100% in a 3 months – they have heard lots of such success stories – normally they are only stories!
Then there is this category who have invested as it is believed to be good but without much knowledge, their BP and Sessex go in the same direction generally.
You can identify yourself in any of the above catagories but your end result would be the same. The sensex has lost more than 43% in the last 8 months ensuring all equity based, biased instruments to give a depression
Look at debt instruments – their dismal returns of 8% to 12% hasnt even beaten the inflation!!
So what to do and how to go about?
to be concluded….