Complexity over simplicity

The perils of us ignoring simple investment options for exotic structures

- SHYAMALI BASU

How difficult is it to do simple things? If we do a few basic things right and consistently, most of us will be well taken care of. Moderate exercise, good sleep and the right diet will be enough for most of us to stay fit. That said, it is not interesting and does not show quick results. Instead, we constantly search for a magical potion and spend more time researching what’s new. Whether it is the latest fad in diet or exercise, that is what everyone I know does. This relentless pursuit makes all of us fall prey to the marketing gimmicks of those then-and-now testimonial pictures. The ubiquitous mantra is, “I want something more, and that too faster than others.”

Almost everything else in life is similar, even personal finance.

It was just the other day I met a client. Very suave. Schooled abroad at one of the Ivy League universities. A seasoned investor. Had done well professionally and made smart investments in stocks. He was now wanting to discuss a new idea for investment. I urged him to share his list of investments to help me know where to start.