Skin in the Game
I am sure you would have been approached by someone urging you to invest in options/ derivatives etc and claiming that such products could make you a millionaire overnight. Have you ever wondered if this was indeed possible, and why the person himself did not invest in such a product and become a millionaire? Why would he still be cold calling you and doing door-to-door selling? If something sounds too good to be true, most likely it is too good to be true in reality.
There are very few people in the world who have consistently made huge money using such techniques. These are mostly professionals who have been in the industry for a very long time and stock trading is their full-time profession. Most people who have generated wealth through equity markets are those who have continued to invest in high-quality companies and patiently waited for compounding to show its magic.
Have you ever asked your advisors how much of their own money is invested in the products they recommend? They would tell you a pack of lies, as to why they themselves have not invested – risk profile/ income level / different products for different people, etc. Is it possible that a product that is excellent for you does not work for the person recommending/ selling it?
We believe that all the theories contrived by the financial industry for recommending different products to different people are simply money-making tactics wherein the interest of the common retail investor suffers the most. Most platforms sell commission-based products which lead to a conflict of interests. Needless to say, everyone tries to maximize their own benefits with little regard for the other.
We, at Finacular, firmly believe that what is good for you is good for us as well. The founding team of Finacular invests in the same assets which we recommend to you. Our objectives are the same as yours – long-term wealth creation and financial independence; hence our investments should be the same as well. If we are recommending a mutual fund scheme or a small finance bank or corporate FD to you, be assured that our money is deposited in the same institution as well. In fact, we try to identify mutual fund schemes where the fund manager and his team have themselves invested in the same fund.