Conservatively Aggressive
Would you ever be amused to invest in a scheme that gives you 5% per month returns especially when you have never invested in equities & have always kept your money in fixed deposits or post office scheme?
During pandemic, people had a lot of time & money. So?
They started to think of new & easier ways to make money. We also had YouTubers telling us it’s easy to make certain % returns on a big capital if we do what they do. They would teach us by charging a fee for the course. That’s still okay to some extent as one would learn things & then do it themselves.
Then came a new type of service where someone unknown comes to you & tells you to invest with them and get a fixed returns of 3-5% per month. YES, FIXED RETURNS PER MONTH!
Now, the target market for these guys is not the millennials who are already busy doing crypto & other fancy stuff. It was old age high savings folks those never even came to market due to fear of losing money. These guys typically invested major chunk of their savings in FD, Gold & Real Estate. A genuine advisor would never be able to convince them about inflation & growth because all the cared about was safety.
But then these new fixed returns guys came in. They had a fascinating story. They have all the proofs of generating those profits of past few months where market didn’t go down. And now, all of a sudden everybody who never even dared to invest in equity mutual funds for 12% per annum started pouring in their retirement corpus into these schemes where they were guaranteed 5% per month on a stamp paper.
So let me get this clear, they either want NO RISK (FD/GOLD) or they are ready to GAMBLE on someone with no track record.
So they are Conservative, but they are Aggressive too.
They either want fixed returns (without worrying about inflation)
OR
They want abnormal returns (at a risk of permanent loss of capital)
NOTHING IN BETWEEN!
A guy who wanted to recommend an equity mutual fund with a consistent track record of over 10 years seemed risky.
HOWEVER
A guy who has no experience whatsoever seemed a better choice to deploy funds for higher returns.
A question for you: Do you think it is sustainable to generate 5% per month in equity markets?
Moral of the story:
Higher returns will come at a higher cost & risk. Risk of losing your entire capital. Beware of such schemes. They are not sustainable.
Personal finance is really PERSONAL. What suits others may not suit you. Confused about where to invest your money?
Book a consultation call with me (paid service) to get your queries answered