The common refrain is, “I would have gotten better returns from an FD!” Considering many of these investors have earlier invested in FDs, or their parents have, looking at what their fixed deposit has given them and questioning the value of equity is not wrong, if one considers their point of view.

Investment gurus like Warren Buffet and Peter Lynch have been quite vocal about people making forecasts about the economy or the markets. That’s because market is not predictable in the short-term.

The answer lies in “not needing the money NOW”. Have you noticed how you tend to worry less about money when you have more than enough of it? The feeling when you receive your salary versus when you are nearing month end is quite different.

First, let’s look at gold performance vis-à-vis that of equities, since 1979. In the last 40 years, Sensex has outperformed gold by a huge margin.

The dilemma is not only which funds to pick for your portfolio but also to know when to stop adding.

It’s like asking if it’s too late to get into a relationship. It depends on what stage of your life you are in. Just like when building a good relationship, you invest knowing your expectations – through the ups and downs.

One thing that came out from our discussions was that a lot of savers go for financial products based on their perception of how “risky” they are.

When investing, many people often mistakenly start with a “product”.

Every year fund managers quit fund houses to join another. Does that mean that you should also exit funds and start chasing the fund manager?

Now that the election results are out, are you more confident about investing in equity?

Now, you have an opportunity to shower back the love and support you received unconditionally. Instead of the usual ephemeral gift, perhaps offer your parents to help out financially.

By taking calculated steps and avoiding financial pitfalls, many not only survive the ordeal but also come out discovering a lot about their personal finances.