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23 September, 2014 15:48 IST
How to invest?
Source: IRIS (19-NOV-12)
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Author: P.V. Subramanyam

Subra Sir what you are saying is true, but I need the car now, AND i can afford it. Said a 26 year old girl. I was actually delighted.

Coming to think of it, a debtor BUYS a Indica, borrowing money from Hdfc bank, and paying the installments - she is doing ME  a favor.

At a higher level, the borrower (debtor) pays the investor - wow. So quickly make a decision on whether you want to be a debtor (I owe so I go - to work) or an investor (i know how to generate cash flows for my needs).

When a person says I wish to be a debtor, and NOT an investor, they say it in the following ways:

a. Subra sir, what will happen by investing Rs 500 a month?

b. I know NOTHING about investing - easy for you to say because you seem to know.

c. My father asks me to invest in LIC and you screamed at me when I said endowment plan. Being an MBA with finance and marketing is so inadequate for me!

d. I go to the bank at 8am and come home at 8pm. I have no time to read / browse the net or to even call you to ask, how can I invest? I just do not have the time to invest regularly.

e. My father invested in the share market and lost everything. I am afraid to invest regularly. I am a full time banker, not  a broker, ok.

Here is my reply:

Ok PD (no point in using her name, right?) here is my reply:

It does not matter how much you invest, just make a start. It is none of my business whether you invest Rs 500 a month or Rs 8000 a month. Every rupee counts and making a start is important. If you wish to invest Rs 5000 a month let us put it in one scheme - but if it is Rs 8000 let us put it in 2 ELSS schemes. Growth plan, no dividend. Let us look at it in 5 years. Remember 5 years. Not a day less, not a day more.

And my dear girl you know nothing about the engine, the HP, the fuel, the gears, combustion….right, but you are getting yourself a car…why goddamn it, you are about to spend Rs 4800 to LEARN DRIVING! It is a vehicle which will get you from one place to another. Investing too will get you to a location where you want to be ….20, 24, 30 years from now!

It is not as though you know nothing. You have passed the derivative exam, the mutual funds exam, and the bond market exam. I remember one nice ppt that you had made about the mutual fund exam and one about derivatives….so you do know something, but yes a lot of it has to be learnt.

Sorry your father is not a serious banker. He was in the support function, does not understand finance, did lose money in the UTI 1964 scheme, in some stupid company FDs, etc. HE HAS NO RIGHT TO ADVICE YOU ON INVESTING. He does not know his 'a' from his 'e'!! I do not think he knows the difference between Investing and Saving….

Yes I heard that you are working real hard (good show, proud of you!) but starting a couple of SIPs, doing the kyc, should not take more than 20 minutes, I can assure you.
and hey you have my no., email id, fb link,……stop giving excuses…..

P.V. Subramanyam is a financial domain trainer and can be contacted at

The author also runs a blog -

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