An innocent & Genuine Query

 Xxxx Sxxx 4/E
Ok sir. I started reading your book. Regarding the downfall of adani  how we can trust share market. I mean, no offense sir. How can we closely watch the market. Here for adani, in a day or two he lost billions.

Rajeeve: This is a very genuine question and quite often asked.
A short and simple reply is we don't need to watch it. All we need to do is invest in Mutual Funds because there are experts who are doing it for you- not only watch it they are actively buying and selling for you for a very small fee and without incurring any capital gains tax for you.
Secondly, you're not really investing in a single company but in the Indian economy at large. A single company going up and down will not really make a difference to your portfolio even if it is State Bank of India since the maximum exposure allowed to a single company in any MF scheme is 10%. As long as you have faith in the economy of your country you will gain and for that you will first have to invest. If you don't have any faith in the economy of India then everything is useless even real estate or FDs won't work because they're all based on faith.

Thirdly, these funds managers are very smart. Except for one MF , no-one  had any exposure to Adani group. Only the passive funds lost a little.

Fourthly, you have said that Adani lost ₹Billions . Well that loss is notional, tomorrow if people start buying that loss will reverse.

Finally, His loss does not represent the loss of the investors unless they have purchased his shares. Then again if they have purchased without due diligence they will have to pay. This is applicable for all Investments otherwise they will give results like chit funds .

So you may have understood that without participating in equity you will not create an appreciable financial cushion for yourself.Since you're busy with your profession it's better to let other professionals manage it for you via MFs with minimum charges and maximum transparency and safety.