The Most Authentic Guide on Personal Finance and Investments


Words of Wisdom : "There are only two lasting bequests we can give our children... one is roots, the other wings." ~ Steven Covey

Investing in mutual funds is akin to eating at udipi restaurant

A typical menu at a Udipi restaurant
- Sada Dosa
- Masala Dosa
- Mysore Masala Dosa
- Rava Dosa
- Plain Uthappam
- Onion Uthappam
- Idli Sambhar
- Vada Sambhar
- Rasam
- Tea / Coffee / Cold drink
... and much more



A typical menu at a Mutual Fund Co.
- Large-cap equity mutual fund
- Mid/Small-cap equity mutual fund
- Equity Linked Saving Scheme
- Thematic fund
- International or Global fund
- Hybrid Balanced / MIP fund
- Short-term debt fund
- Long-term debt fund
- Liquid fund
- Gilt fund
- Gold ETF / Gold FoF
... and much more

What you eat on a particular day depends on
... whether you have come for some snacks or are hungry for a full-fledged dinner
... whether you are craving for a dosa or vada-sambhar
... whether you want a hot beverage or would prefer a cold drink due to hot weather
... whether you are rushed for time or wish to enjoy a leisurely meal

Similarly, what you buy on a given day "should" depend on
... whether you are investing for a few days or few years
... whether you need tax benefit or not
... whether you are looking for safe returns or aggressive growth
... whether you need to build upon or diversify your portfolio

Therefore, henceforth, do not buy what is being "sold" to you by the mutual fund companies or their agents / advisors (e.g. currently they are forcefully pushing close-ended equity funds down your throat). Past experience shows that, more often than not, they are interested in their returns not yours.


A bad food recommendation by the waiter may leave you with a bad taste for a few hours. But a bad fund recommendation would leave you with a bad investment for years.

As such, first analyze your needs and then order the mutual funds that are best suited to satisfy them. They have a lot to offer. All you need is to pinpoint the "right" ones.

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Ignorance is like a SIGNED BLANK CHEQUE... anyone can MISUSE it.

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