SEBI launches a free investor certification program!

 

 

 

It's important to understand that while SEBI's certificate course is comprehensive, it's not designed to cover all aspects, such as the risks of equity investment and essential topics in bond investing.

 

The entire certificate focuses on equity investing, which shows a notable lack of expertise and focus within SEBI, BSE, NSE, NSDL, and CDSL.

 

My view on educating retail investors on investing safely in the security market.

 

Why avoid Equity investing?

 

As the Equity market can be volatile, it's crucial to be cautious and responsible. This includes avoiding unrealistic expectations, focusing on long-term goals, diversifying wisely, and understanding the nature of equity markets. Emotional reactions, excessive trading, high fees, and misunderstanding risk are common pitfalls. Regularly reviewing investments, not reacting impulsively to media reports, considering inflation, and avoiding market timing is also key. Most importantly, conducting due diligence and ensuring you're working with the right advisor is vital for successful investment management.

 

Why invest in bonds?

 

Certainly! Here's a more technical version of it:

 

Remember the following guidelines: Maintain reasonable return expectations for fixed-coupon securities and strategically focus on and achieve short-, medium--, and long-term investment goals. Also, note that single bonds can significantly contribute to portfolio diversification and eliminate emotional decision-making from market activities by actively trading. Avoid excessive trading as it can lead to lower performance, minimize fees to positively impact performance compared to equities, and efficiently manage portfolio risks through quick and easy rebalancing. Consistently evaluate the portfolio to optimize rebalancing strategies and avoid being influenced by manipulative news, as debt variables are transparent and clear. Consider and mitigate the impact of inflation on investments, and be cautious against misguided advisory relationships.

 

The problem in Investing in Equity through Mutual Fund.

 

Investing in equity-oriented mutual funds presents its own unique challenges. All asset management companies (AMCs) consistently generate profits, regardless of whether investors achieve market returns or not. Mutual funds are structured to take advantage of investors, and no AMC is motivated to reward the fund manager unless investors achieve at least a minimum market benchmark return. Furthermore, stockbrokers benefit at the expense of investors. Unlike retail investors, regulatory bodies like the Securities and Exchange Board of India (SEBI), mutual funds, portfolio managers, stockbrokers, and the government all profit from investor investments through brokerage, taxes, commissions, and fees.

 

Investing in Bonds

 

I noticed that this text does not cover various aspects of the bond market but focuses illusionary only a few good things about equity markets. It mentions that the certificate course lacks sufficient information about the bond market and fails to highlight the safety of bonds compared to the equity market. It deliberately fails to emphasise the straightforward nature of price movement and risk assessment in the bond market, along with the minimal risk of losing the principal amount invested in bonds. Additionally, it does not suggest investing in GOI bonds and Treasury T bills with higher returns and minimal risk compared to bank deposits and equity investments for a month. Finally, I am surprise that it not mentioned of the CCIL RBI Retail platform is in SEBI's information.

 

 

1. Harshad Mehta Scam – 1992. Ketan Parekh Scam -2001, NSE Colocation Scam – 2015, Karvy Scam – 2019, UTI Scam – 2001 (leaving small  and global)