http:\/\/www.livemint.com\/Money\/57wQlkkdLuC8GvifojfdMK\/How-to-shrink-50000-to-248.html<\/a><\/p>\nIn investing, simple stuff works best. In the past highest return came from buying-and-holding on to investments like equity \u00a0mutual funds for 20 years( 16%+ p.a from equity funds).<\/p>\n
But as one’s wealth grows, it attracts lots of attention foremost from your bank as they are fully ‘aware’ of your account balance. \u00a0You will be tempted with Gold Privilege Account, Private banking, exclusive relationship manager \u00a0 along with free invitations to concerts, limitless credit cards and other such knick-knacks.<\/p>\n
While buying any investment please remember that what matters most is<\/p>\n
1. Where is the money being invested ?<\/p>\n
2. What is the cost ?<\/p>\n
3. What is long term track record of returns ?<\/p>\n
4. How quickly can you sell?<\/p>\n
5. What are the charges for selling?<\/p>\n
Read all this in the application form before signing. Many who happily sign on the dotted line without reading do not realize that their hard earned wealth is being invested in things that can not be sold easily, has high costs and mostly low returns.<\/p>\n
What is the solution for the investor then ? \u00a0Whether one is a HNI or not, I suggest sticking \u00a0to simple open ended equity funds that have been around for 10 years or more (only if you have the patience to wait for next 10 years at least).\u00a0While mutual funds do not guarantee any returns, they are the most transparent investment products and are well regulated. While future returns can vary, they will likely remain the best option for wealth creation.<\/p>\n
So next time when some one tries to push an investment plan along your way, please remember that it is not a good idea to mix investments and insurance, Term Insurance is what most of us require for protection and investments are for growth, keep it simple and separate.<\/p>\n
<\/p>\n
PS : \u00a0I advise on mutual funds and hence am biased towards it and against other products. But most of what i write is from my personal experience of seeing \u00a0investors suffer after buying products with long lock-ins and low returns.<\/p>\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
Most of us dream of owning a high end car or bike ( Harley this or BMW that ) because those vehicles arguably are the best in class and are seen as exclusive. \u00a0This works exactly opposite in investments. Many people, especially the high net worth investors get caught in this trap of exclusivity-is-better while […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[13,3],"tags":[],"_links":{"self":[{"href":"https:\/\/blog.credocap.com\/index.php?rest_route=\/wp\/v2\/posts\/246"}],"collection":[{"href":"https:\/\/blog.credocap.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.credocap.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.credocap.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.credocap.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=246"}],"version-history":[{"count":4,"href":"https:\/\/blog.credocap.com\/index.php?rest_route=\/wp\/v2\/posts\/246\/revisions"}],"predecessor-version":[{"id":250,"href":"https:\/\/blog.credocap.com\/index.php?rest_route=\/wp\/v2\/posts\/246\/revisions\/250"}],"wp:attachment":[{"href":"https:\/\/blog.credocap.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=246"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.credocap.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=246"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.credocap.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=246"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}