Almost everyone who starts to sign up for our investing service, starts with 2 questions.
1. What return will I get?
2. How much do you charge?
These questions remain unchanged across the spectrum of investing experience.
This reduces the investment decision to a simplistic one - with familiar decision criteria.
“Kitna deti hai?” “Kitne me doge?”
While simplification of investment decisions is needed, this particular simplification is a dangerous one because it focuses on the wrong criteria. These are criteria for a consumption decision and not an investment one.
It also reduces, in the mind of the prospective investor, all investments to a more or less standardized commodity having only two attributes - cost and ROI.
Nothing could be further from the truth.
It’s about the purpose
Do you need the money to pay for expenses in the next few months? Or are you keeping the money to pay for your retirement?
The answer will determine what investment options you can choose from. Stocks won’t give you the certainty you need in the short term and FDs won’t give you the growth you need for your retirement.
You cannot evaluate the same investment options for different purposes only basis the rate of return they provide.
Return and cost matter, but only within a group of similar investments. The choice of this group depends entirely on your purpose.
Start with purpose.