A Movie on Bachat, Nivesh, Badhat by IDFC

So IDFC has created a movie on Investing - in two parts:

I like the concept - to explain to people who are either spendthrifts or just savers.

But it would be a travesty if I didn't say:

  • Don't just hand money to your banker. Learn about investing. It's more important, because bankers have been known to fraud people.
  • Especially not cash - always give cheques.
  • Don't believe equity markets only go up. They don't. Investors in the US over the last 10 years have seen no appreciation. In 20 years, Japan hasn't gone anywhere.
  • Save and invest for goals. This requires some thinking, but if you put a goalpost that you need to reach, for every single investment, any money above that is yours to spend, lavishly or not. Saving or investing just for the sake of it is utterly useless.

I will expand on the concept of goal-based-investing in either videos or articles. But as important as it is to save and invest, it's just as important to learn to spend and have fun. There is absolutely no point leaving your money to your kids - you have done them enough good by giving them a proper education.

There's another twist to the story. If life is a series of upturns and downturns, and prices will go up and down, then it's best to take advantage of the upturns. That means to ride up the trends and protect yourself on the way down. Again, needs a longer post - but it's something that will give you one big return at the end, instead of small returns adding up.

Still, the movie has important lessons. Don't save, invest. Beat Inflation (they didn't say that, but still). Create avenues for high growth (equity). Get into the habit of systematically investing even if you don't know where.

It's nice to see that institutions are getting into education and video. Everything will help. Do let me know your thoughts!