In http://kaipathoughts.blogspot.com/2013/02/the-financial-mistakes-i-did.html I have talked about the mistakes I did. Due to which I generally don't criticise any body doing anything with their money especially investment vise.
There is no good or bad investment. It is just probability of being good. Direct investment in stocks does the best follwed by equity mutual funds followed by debt funds and savings. This is what many will preach. But the stock you invested in might lose entire capital and somebody keeping money in savings bank might be earning a compound 4% interest on his money. It is just that the probability of a well researched stock beating any other class is significant so it is worth taking the risk with some part of your money. So when I see some body investing in an endowment policy, I see some body earning 4, 5 or 6% on a long term. Yes he will get more if he invests in term insurance + FD but such person will never buy a term insurnace. So some insurance is better than no insurance. Just that he will be paying a steep price for the insurance.
Mostly anything beats the default strategyif the default is keeping the money in savings account which was the case for me for long time. Some action is better than no action and the action will move the person towards thinking about better investments.
There is no good or bad investment. It is just probability of being good. Direct investment in stocks does the best follwed by equity mutual funds followed by debt funds and savings. This is what many will preach. But the stock you invested in might lose entire capital and somebody keeping money in savings bank might be earning a compound 4% interest on his money. It is just that the probability of a well researched stock beating any other class is significant so it is worth taking the risk with some part of your money. So when I see some body investing in an endowment policy, I see some body earning 4, 5 or 6% on a long term. Yes he will get more if he invests in term insurance + FD but such person will never buy a term insurnace. So some insurance is better than no insurance. Just that he will be paying a steep price for the insurance.
Mostly anything beats the default strategyif the default is keeping the money in savings account which was the case for me for long time. Some action is better than no action and the action will move the person towards thinking about better investments.
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