Hi Friends,
On the insistence of my 2 great friends, Udayan Chattopadhyay and Shraddha Jhunjhunwala Todi, I have finally decided to start a blog actively.I shall comment on financial issues which should be at the back of a person's mind at all times. As Einstein had said, "The world is a dangerous place; not because of the people who are evil, but because of the people who don't do anything about it." Thus it is of prime importance that one needs to be responsible for himself and take actions in such a manner that one does not have to run from pillar to post just because one has been taken for a ride by some greedy and unethical people.
It is for this reason that I have chosen a very simple but a very important area which proves to be a pain for many. Some days back, I went to a financial institution where they told me, "We have this offer where you can invest a minimum of 25 lakhs with us and expect a guaranteed return of 24% y-o-y." The lock in period is 5 years which means that I cannot withdraw from the money that I have invested with them for 5 years or else there will be a hefty charge of around 10-15% of the initial amount that I had invested.
Please read the above line very carefully once again. Now what does it say?
Lock in period of 5 years basically means that if I withdraw the invested money within 5 years (let us assume it to be Rs 1 crore for simplicity), I would have to pay a heavy penalty. So if I would have invested money with them, it would mean that for 5 years I need to forget about the money. An important thing to be noted here is that the money is managed by commission hungry salespeople who have been changing jobs as frequently as their clothes and who have stringent targets to meet. So by the time 5 years comes to an end, no one is actually answerable for your money. It is like handing over money to someone whom you supposedly trust on the assumption that he would generate a 24% return for you. Most of the times what happens is that the 1 crore has been converted into peanuts and the guarantee has gone for a toss because " Investments are subject to market fluctuations and one has not read the offer document carefully".
Friends, the objective is not to scare the living daylights out of you. It is just one of the important insights that I wished to share with you. As the saying goes "Prevention is better than cure." In my further posts I shall cover the various aspects of finance that a professional from every field should know at the back of his hand so that he can lead a life to prosperity without having to bother about things which are beyond his circle of competence. The objective is to help people achieve financial freedom so that the dreams that were nurtured during childhood come back to life which might have been kept in the backburner for long due to the stress, pressures and speed of the day to day life.
You can also follow me on my page: www.facebook.com/stocksbmawealth or email me at vivekshah83ster@gmail.com with your feedback and queries. Thank You each and everyone!!!!!! Have a great life and career ahead.
Regards,
Vivek Shah
On the insistence of my 2 great friends, Udayan Chattopadhyay and Shraddha Jhunjhunwala Todi, I have finally decided to start a blog actively.I shall comment on financial issues which should be at the back of a person's mind at all times. As Einstein had said, "The world is a dangerous place; not because of the people who are evil, but because of the people who don't do anything about it." Thus it is of prime importance that one needs to be responsible for himself and take actions in such a manner that one does not have to run from pillar to post just because one has been taken for a ride by some greedy and unethical people.
It is for this reason that I have chosen a very simple but a very important area which proves to be a pain for many. Some days back, I went to a financial institution where they told me, "We have this offer where you can invest a minimum of 25 lakhs with us and expect a guaranteed return of 24% y-o-y." The lock in period is 5 years which means that I cannot withdraw from the money that I have invested with them for 5 years or else there will be a hefty charge of around 10-15% of the initial amount that I had invested.
Please read the above line very carefully once again. Now what does it say?
Lock in period of 5 years basically means that if I withdraw the invested money within 5 years (let us assume it to be Rs 1 crore for simplicity), I would have to pay a heavy penalty. So if I would have invested money with them, it would mean that for 5 years I need to forget about the money. An important thing to be noted here is that the money is managed by commission hungry salespeople who have been changing jobs as frequently as their clothes and who have stringent targets to meet. So by the time 5 years comes to an end, no one is actually answerable for your money. It is like handing over money to someone whom you supposedly trust on the assumption that he would generate a 24% return for you. Most of the times what happens is that the 1 crore has been converted into peanuts and the guarantee has gone for a toss because " Investments are subject to market fluctuations and one has not read the offer document carefully".
Friends, the objective is not to scare the living daylights out of you. It is just one of the important insights that I wished to share with you. As the saying goes "Prevention is better than cure." In my further posts I shall cover the various aspects of finance that a professional from every field should know at the back of his hand so that he can lead a life to prosperity without having to bother about things which are beyond his circle of competence. The objective is to help people achieve financial freedom so that the dreams that were nurtured during childhood come back to life which might have been kept in the backburner for long due to the stress, pressures and speed of the day to day life.
You can also follow me on my page: www.facebook.com/stocksbmawealth or email me at vivekshah83ster@gmail.com with your feedback and queries. Thank You each and everyone!!!!!! Have a great life and career ahead.
Regards,
Vivek Shah
This is great stuff vivek...thanks for taking the initiative..im looking forward for more posts !
ReplyDeleteYou are welcome Vedant!!!! Surely will keep on posting once a week.....
DeleteGood stuff Vivek... Good to see someone in the business take this initiative to educate the masses... you should also talk about the teaching bit that you have started as part of this same initiative
ReplyDeleteThank You so much Girish.... Ya I shall talk about it in my further posts... In fact I have been inspired by you because you have started working at the grassroot level. We have an amazing untapped workforce which can actually lead the country towards glory.
ReplyDelete