Before understanding what is 'deserving' DIY 'Investor' first let's understand what it DIY means (Well I know you know abbreviation of D-I-Y and certainly don't mean to ask literal meaning of it!).
Do-It-Yourself is a thing that is practiced everyday, in everything we do. Doing something ourselves doesn't mean we do it perfectly the way it can be best done. We know, we don't want everything to be done the best all the time. When we do something ourselves, we are not expecting the result to be matching the professional quality.
From preparing Pizza or a sambar for Idly to fixing a leaking water tap to minor electrical / mechanical repair in an equipment...we all do it to some extent and we know our limit, to what extent and what quality we can handle those things. Even some daily accounting or some first aid medication or simple legal drafting.
None of us seek a cook for our daily cooking, a mechanic to fix a rattling part in the car / bike, an electrician to set-up a Diwali lantern / decorative lightnings, a plumber to clean the clogged water tap nozzle, an accountant to keep the records of our daily spends, a doctor for common cold, a lawyer for drafting a simple short duration lease agreement.
And we also are pretty aware that if those tiny things we do, will be definitely done far better than us by a professional. But it is not feasible to hire / consult a professional for those tiny things.
But in the matter of investing we don't understand this. Not only we, even Govt and lawmakers seem not to be understanding the difference.
In medicine, there are few drugs that you can buy Over-The-Counter (OTC) without a doctor's prescription. For most other things you should consult a doctor. That means it is regulated to what extent you can indulge in DIY / self-medication.
Similarly, you can file simple Income Tax Return, as long you have single source of income or below stipulated income etc...beyond that the process is complex and even a professional / Chartered Accountant is mandatory. Same in case of legal filings or works with Govt agencies etc...it is very well demarked to what extent a professional's (Company Secretary, Lawyer) service is optional and beyond / for which it is mandatory.
But it is not so in case of investments! People are let free invest in whatever they wish with no regard to their education, knowledge and experience! And laymen, if not barred / contained, wound not mind (care) indulging in any misadventure.
In the world of investments also, there are OTC products / schemes - Fixed Deposits, Postal Savings, PPF etc they are very simple and harmless. No professional is required to recommend them. But not beyond that!
So, that's where I am coming from. There is DIY in everything. We should understand respect the limits based on our knowledge and expertise. Suppose if you wish to do something DIY like pro...then you must learn to be a pro first! That simple. So, if you want to manage all you investments on your own, first learn to be a 'professional' investor. That's what I call being a 'deserving' DIY investor.
Do-It-Yourself is a thing that is practiced everyday, in everything we do. Doing something ourselves doesn't mean we do it perfectly the way it can be best done. We know, we don't want everything to be done the best all the time. When we do something ourselves, we are not expecting the result to be matching the professional quality.
From preparing Pizza or a sambar for Idly to fixing a leaking water tap to minor electrical / mechanical repair in an equipment...we all do it to some extent and we know our limit, to what extent and what quality we can handle those things. Even some daily accounting or some first aid medication or simple legal drafting.
None of us seek a cook for our daily cooking, a mechanic to fix a rattling part in the car / bike, an electrician to set-up a Diwali lantern / decorative lightnings, a plumber to clean the clogged water tap nozzle, an accountant to keep the records of our daily spends, a doctor for common cold, a lawyer for drafting a simple short duration lease agreement.
And we also are pretty aware that if those tiny things we do, will be definitely done far better than us by a professional. But it is not feasible to hire / consult a professional for those tiny things.
But in the matter of investing we don't understand this. Not only we, even Govt and lawmakers seem not to be understanding the difference.
In medicine, there are few drugs that you can buy Over-The-Counter (OTC) without a doctor's prescription. For most other things you should consult a doctor. That means it is regulated to what extent you can indulge in DIY / self-medication.
Similarly, you can file simple Income Tax Return, as long you have single source of income or below stipulated income etc...beyond that the process is complex and even a professional / Chartered Accountant is mandatory. Same in case of legal filings or works with Govt agencies etc...it is very well demarked to what extent a professional's (Company Secretary, Lawyer) service is optional and beyond / for which it is mandatory.
But it is not so in case of investments! People are let free invest in whatever they wish with no regard to their education, knowledge and experience! And laymen, if not barred / contained, wound not mind (care) indulging in any misadventure.
In the world of investments also, there are OTC products / schemes - Fixed Deposits, Postal Savings, PPF etc they are very simple and harmless. No professional is required to recommend them. But not beyond that!
So, that's where I am coming from. There is DIY in everything. We should understand respect the limits based on our knowledge and expertise. Suppose if you wish to do something DIY like pro...then you must learn to be a pro first! That simple. So, if you want to manage all you investments on your own, first learn to be a 'professional' investor. That's what I call being a 'deserving' DIY investor.
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