Friday, November 21, 2008

Money, Investment related advice and articles - worth ?

Investment related articles - worth reading it ?

Is it worth reading articles related to investments or is it worth getting advice from some so called geeks in this area. As I got interested in stock market, I am keeping myself updated by reading articles on web, newspapers, magazines etc. One thing you may see is, most of the things they say will be contradicting of what they said in the past. For example, when gold price skyrocketed, you might have seen newspapers showing gold as the investment option and it covers the cover story of some magazines. They also give you some graphs, charts, tables to show you how the rate peaked etc. Then when the price came down from its peak, you could see articles like only a little % of your investment should be in gold.

Once few people from a financial planning company, which is located at L.B Road, Adyar visited our company in Perungudi to deliver tax saving and investment related ides to employees during January 2008, as the due date for submitting the tax exemption bills is nearing. It was during the 2nd week of January 2008. They delivered a speach with tax saving instruments. They were mainly aiming at distributing NFO forms of Reliance Natural resources fund. They were marketing this saying, you all might know how much craze was there for Reliance Power IPO. And they also said, don't go by the SIP route now as the Sensex is going upwards continuously. SIP route will only help you if the market is volatile. This info was very much contradictory to the good investor's plan. Assume if a novice investor invested by taking these people's advice, the Sensex was around 20k that time, and if an investor invested 15K as bulk in a mutual fund, he should have bought units at higher price and his investment might have been eroded a lot more than 60% as of October 2008. If he had taken the SIP route he should have got more units with low price. So think several times before acting with the advice of the mutual fund agent. They try to market the product which is beneficial to them and which earns them high commission.
I added some more to this at another post here.
Is it worth taking advice from experts ?

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I am a Software Engineer based in Chennai, India. My hobbies are blogging, driving. You can contact me here,

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Disclaimer: All the information given in this blog is only my ideas and knowledge what I got from internet or other sources. For any interest rate, charges etc check the particular service as the charge might have changed. Regarding the intraday trading tips, this is applicable for that day only and also shouldn't be taken as advice. All the actions taken by you is responsible by you only. Thanks.

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