In the last couple of months you will notice a few common things.
1) Value Investment Advisers showing their 1 year performance returns.
2) Technical Analyst Advisers showing monthly/quarterly/annual performance.
3) Fund Management Companies coming out with New Closed Ended Schemes/NFOs/ and products for Equity.
4) New Breed of Geniuses calling themselves Value Investors/Quant Investors/Technical Traders/Day Traders and talking about great returns.
5) Quite a lot of people will sell you Mentoring Courses/Wealth & Money Workshops/MasterMind/Art of Investing Workshops.
6) A lot of presentations on how Equities have given Super Returns ( you might have seen that it was better to buy Maruti shares instead of Maruti Car now you could have bought a BMW today)
7) A lot of Marketing Calls from Advisory Companies promising 20% returns a month on a 50k portfolio ( Actually such a call has only triggered this boring and bullshit post )
There will be early Bird Discounts , more 1 buy 1 free and other
You are and will continue to receive following things
E-mails with subjects like
1) How i made 60-100% in 4 months.
2) Hidden Smallcaps and Multibaggers – Last few days to subscribe
3) Investing Secrets
4) Quadruple your Money
5) Investing Course for your Mind
6) Power of Technical Analysis
7) Trading Coach/Life Coach
8) Mentoring from Masters.
SMS
1) Get the next results breakout which will be up 10%
2) Our DLF Put Option made 24 lakhs on 2 lakhs Capital.
3) Sure Shot Operator Calls.
Phone Calls
1) Kya aap equity market me trade karte hai ?
2) Monthly 20% Return mil jayega sir
3) Minimum Investment 50k sir bas. Charges 5k a month.
4) Our Option Call went up 10 times sir.
These things have been around for a really long time but we see a lot of companies getting floated in Advisory/Planning/Training/Mentoring and use a lot of Marketing to tempt people.
This is what a Bull Market does. Everyone boasts about their calls – The most used words – Maine Bola tha.
Also the performance reports are a good way to sell your product whether it will work or not in the future.
So think hard before you go for anything as we don’t believe the Bull Markets are ending. There will be more choices then ever.
Next 6 months may not be like the previous 6 months but next few years there will be a lot of opportunities.
How to go about your Investment Decisions and Spending your Money is your choice.
All i can say is give it an equal amount of time as you do while buying a New Phone or Gadgets.
( Its a fact we spend more time selecting Phones/Laptops/Gadgets which are going to be worth 50-70% lower than on investment decisions like equities,gold,real estate, fds,ppf or trading decisions or trainings which can increase in value of yourself and your money)
So let me get to the real topic which i wanted to discuss.
The last year has been a good one and everyone is happy unless you are invested in companies like dlf,unitech and previous infra heroes who have been killed.
So let us look at what are the benchmark returns and an interesting work we had done a few weeks back.
The time frame taken was Sept 24th 2013 to Sept 24th 2014.
6 Months returns
| Index | Start Price | End Price | % Returns |
| CNX Nifty | 6516.65 | 8002.4 | 22.80 |
| CNX Midcap | 8156.55 | 11397.8 | 39.74 |
| CNX Smallcap | 3432.7 | 4979.7 | 45.07 |
12 Months Returns
| Index | Start Price | End Price | % Returns |
| CNX Nifty | 5899.45 | 8114.75 | 37.55% |
| CNX Midcap | 6977.75 | 11803.05 | 69.15% |
| CNX Smallcap | 2799.35 | 5255.1 | 87.73% |
These were benchmark index returns which are superb in last 1 year the Midcap Index only went up by 69%.
Now stocks can be picked up on various ways right – Fundamentals, Value Investing, Broker Tips, Hidden Gems, Technicals, Quants, Gut Feel, Operator news.
Everyone of them has been boasting about it.
Now above approaches need a lot of work to be done to increase performance.
So let us look at what happens if you pick stocks randomly with none of the above being used.
The Market is supreme and provides the return in good times to even bad processes.
( Suzlon went up 5 times )
As Warren Buffet says
“ Only when the tide goes out do you discover who’s been swimming naked “
Conclusion
This is the best time for Financial advisers to show their Performance.
Sell Equity Related Products. ( As mentioned in start of the Post )
Use the best marketing and spamming techniques if you are in the business.
Even a broken clock is write twice in the day.
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Vikram Mg 