September 2012

Mr. Gerard Colaco: A study of the history of growth investments clearly reveals that there are only two avenues of these investments that have consistently beaten inflation over the long-term. These avenues are equity and real estate.

EQUITY / STOCK MARKET INVESTMENT:

Mr. Gerard Colaco: The world’s best experts on investment are unanimous in their opinion that equity is the best avenue of investment ever invented for long-term growth. The problem is equity can also be used for speculation. When you see or hear of your friends, co-workers or acquaintances strenuously doing day trading, margin trading, etc., understand that these people are speculating and perverting this magnificent avenue of investment into an avenue of gambling.

You can invest in the stock market in two ways.

Mr. Gerard Colaco: Mutual funds are a hybrid way of investing in real estate, debt, commodity and equity markets. Instead of investing directly, you pool resources with other investors and invest.
As in the case of stock market investments, a lot of wrong advice is given in mutual fund investments, too. Very often, terrible products like new fund offers (NFOs) are sold, not because they are good for investors, but because mutual fund distributors earn maximum brokerage from them. Similarly, a lot of fads like sector funds are recommended, whereas the only two types of equity mutual funds worth investing are well diversified equity funds and index funds

Mr. Gerard Colaco: Knowing your possible needs like vehicle purchases, child education, family functions, vacations, etc., is always good. This prompts you to put aside some money for these requirements.

Finally, every citizen of India must have a passport, an income-tax PAN card, a driving licence and an election identity card. These are the four basic documents that establish you as a citizen of India. Indian citizens who migrate and obtain foreign citizenships would also do well to obtain an Overseas Citizen of India (OCI) card or a Person of Indian Origin (PIO) card.