Contra Facts

You have invested in shares and you also have invested in mutual funds. You have invested in deposits. You think that shares have high risk and mutual funds have medium return and Fixed Deposits are losing their importance.

Are mutual funds you have invested looking for short term or long term? Let us understand fund manager . Fund manager needs to be focused on short return returns ; a large chunk of the fund manager’s bonus is based on that. If you are shareholder you have opportunity to questions directors. Is there a way to question fund managers? Do they not asked to annually meet with their investors and answer questions. Can Investors enforce that the fund manager to invest in ethical companies?An incomplete feedback loop;

You have invested your money in bank deposits. You should be careful about the bank where you deposit your money. Realize that depositors do not have any forum to express themselves to the management.Now banks were the main reason for the global financial crisis; in their quest for short term returns they forgot the basic tenets of safe lending and went on a sub prime lending binge to boost short term profits Depositors, who contribute more than 7 times the funds of the bank, do not get a chance to quiz management though shareholders do.

Same, when the successful commencement of auction of 3G spectrum, expected to raise some Rs 45,000 crores for the Government. Have we forgotten that it was thanks to the vacation of the spectrum by the army; the same army on which such little is being and has shortage of food, drinking water, medicines and ammunition.