Basics of Smart Investments
Recently on a trek, one of my friend asked me a simple question, which lead to a very basic discussion on investments. It included matters like things to avoid and things to choose. For the benefit of all, I reproduced the entire dialogue between us. I would be glad to receive views and things to add to it. Happy reading! “I’ve idle funds lying in my savings bank account. What should I do?” asked my friend while I managed to penguin-walk on the Chaddar Trek. I visualized this is a very big problem and I genuinely wanted to help my friend. Hence, our discussion started even on a holiday. Our education system teaches us to “earn”. Definitely, earning is important. But, more important than that is to “save”. And even more important is to “smartly invest”. The problem is that it is not taught in any school, college or even at home. Mere investment of Rs. 2,000/- to Rs. 5,000/- per month turns into crores after 20-30 years, if smartly invested. I responded to my friend, “Have you ...