Monday, March 30, 2009

Is it worth taking advice from experts ?

I already wrote a post about the so called financial advisors and financial magazines advice to people about the markets, investment strategy etc, is it worth of taking that. Now some more to add on that.
Everyone might have read these so called finacial advisors and magazines advicing people to go for SIP (Systematic Investment Plan) route, to invest in mutual funds and do not go in bulk. Yes, that is a good advice as you don't lose heavily if the market fell after you invest in bulk. They also come up with some tables showing how you profit from this route. Yesterday in one of the leading business magazine, at the front page, they said, that at present scenario the SIP investors are hit most than the non SIP investors. They quote some examples in tables showing the returns generated by SIP route and non SIP route. Yes, the SIP investors were hit the most. Now for somedays you can see the so called advisors and magazines advice people not to take the SIP route or they don't talk anything about SIP. Somedays back everywhere in financial magazine, site or advisors, all talk about FMPs. They give comparison table between bank fixed deposit and FMP, how much returns after tax dedcution you will receive, and how this FMP is best compared to bank fixed deposit etc. Now no where you can see any news about FMPs, as they are not the success as foreseen by the so called experts. And when the gold price rises, these experts and magazines draw some tables for comparison between gold and sensex, gold and nifty, gold and solver, gold and real estate, what not ?, to come to the conclusion that gold has given the highest returns in the last 1 year, or 6 months etc. But once the price of gold comes down, they will advice that only 5% of asset should be in gold, blah.. blah.
So it is not at all worth to get advice from so called experts. When the Sensex is at 17K, they called it the bottom, when at 14K, they called the same thing, when at 10K, they called the same thing.

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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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