My friends grandfather used to keep his retirement corpus in Blue-Chips.

One of the bluechips back then was Yes Bank. He had close to 25 % investment there.

Once during a general chat, I asked “why don’t you invest in funds”

He said, “They charge money and give lesser returns. Why should I do it when I can buy good stocks myself “

last when I met him, his portfolio had generated his returns over 13 years.

Your investments are not safe even if its in bluechip companies.

Take for examples the recent correction more than 20 stocks have lost over 20% from their highs. Solid companies like Asian Paints, Adani enterprise, Tata Motors have lost over 30%.

If you had invested in Indusind Bank you would have lost 43%. This isn’t safe investing by any standards. Nifty on other hand has taken less than 9 % during same time. Many actively managed Mutual Funds have fallen lesser than 10%.

Stock investing is not for everyone. It requires extensive research, active monitoring and continuous rebalancing. Investing is easy but not so simple. If you can not do it then stick to mutual funds. Agree ?

A blog from Santosh G Akerkar. For Educational and Awareness purposes.
Best Regards,
Santosh Akerkar