I invested 60000 over a three year lock in period. 20000 every January for three years. Till about a year back I was confident that this investment would grow ten fold. 3-6 lakhs in three years. That is the picture painted by the sales person in Jan 08.
Today I am a wiser person thanks to the advice given by a friend who has been guiding me for about a year now.I was sharing my rather thin investment folio with him and he said the moment your three year lock in period is over , redeem your money invested in mutual funds, pension schemes and ULIPs and invest it in the equity market.He made me open a de-mat account six months back and asked me to invest up to 15000 every month in shares recommended by him.
Earlier this month I went to the Reliance Insurance Company to see what was the NAV of my ULIP. I was told my current NAV was 56000 and in case I redeemed it now I would get 53000 after deducting 8% for redemption charges. They tried to convince me to invest another 20k and wait for one more year. You know why? After 4 years the redemption amount would be 96% of the NAV .
I told him very politely to accept my redemption request and I have to wait another 10 days to lay my hands on the 53000.
In 3 years these incompetent nincompoops have not even generated an overall growth of 30 % of the money invested with them. But I am sure they have paid themselves and their servile employees from my money.
They have left the client high and dry. No apologies, no nothing. Why should we be so naive? Can't we manage our own investments? Can't we invest from our own de mat account and invest long term?
I have learnt my lesson and now I am investing in shares recommended by a technical analyst who is assuruing me of a 100 % growth every year. I was not able to invest 15000 every month but I invested 30000 in 6 different scrips and the last three were from the profits i got from the first three scrips I bought in the first three months. But I am going to invest in the equity market and stay invested long term in the equity market.Long term means 3 -10 years.My technical analyst is doing a great job and his regular blog posts tells its own story.
To learn more about the realistic possibilities of long term investment click here .