Year-End Special: ‘Don’t Blindly Trust Finfluers and Quacks’ | Jobs Vox

In the year 2002 tested the judgment of many investors. Most equity funds have offered modest returns and debt funds have disappointed investors with low single-digit returns. ETMutualFunds decided to reach out to financial planners and mutual fund advisors to learn about investor behavior in 2022. We also asked them what they think will happen in the investment space in 2023. 2022 was a year of uncertainty and volatility for the organization. India remains a bright spot even as it markets globally,” he says. Kishore Kumar BalpalliFounder, MyMoneySage.in. Edited interview.

What was good in 2022?

Despite uncertainties, equity mutual fund inflows are steady. It shows that most investors follow a disciplined approach and continue to invest with volatility.

What went wrong in 2022?

In October alone, over Rs 1,500 crore was withdrawn from bank and PSU funds and corporate bond funds, which underperformed due to successive rate hikes. Most investors fail to understand the future growth potential of these funds. Investors fail to understand that even fixed income products offer indirect income. Investors see only the short-term underperformance of these funds as a detriment to their future potential. However, since interest rates have reached record highs, it is interesting to see that the rate hikes are beginning to be reflected in the fund’s returns.

Investing in unregulated financial products can lead to erosion of your hard earned money. Time profiteers have fallen prey to such tools. During this time, the default of the Vold A Crypto platform and FTX, the leading crypto currency exchange in India, caused investors to lose millions of dollars.

Any advice you have for investors?
My advice to investors, whether new or seasoned, is to do thorough research and consider carefully before making any investment decision. Don’t blindly trust finfluners and quacks who have no oversight or accountability for their advice. It is important to consider the risks and rewards of investing, as well as the individual’s investment goals and risk tolerance. It is a good idea to diversify one’s investment portfolio to reduce risk. New investors should be especially careful not to make rash decisions and fall prey to scams or other fraudulent investment schemes.

Also, the new investors are advised to follow passive investing through index funds or ETF investments. Investors should consult investment advisors registered with SEBI if they require professional help.

Books to be read/listened to

Atomic habits explained by James

Uncommon Billionaires by Saurabh Mukherjea

The Psychology of Money by Morgan Howell