Neil Borate
Heading the personal finance team at Mint
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I had a chat with a 32 yr old in 60 lakh debt from F&O trading. He did an MBA and began trading options in college itself, in a small way. He then got a job in a bank. The pressure of life in Mumbai on a fresher salary made F&O alluring. So the habit continued. He tried trading courses and various techniques. Nothing worked.After 8 years of trading, off and on, he's 60 lakh in debt. The financial system makes borrowing super easy. You can borrow using cards and just pay minimum amount due and then get another card. He even withdrew from EPFO stating 'medical treatment' as the reason. Everything went into trading. After defaults, banks have been harassing him. They called his family, friends, employer anyone they could reach on social media. They sent notices as well. Now they've given up and started to settle the loans. He hopes to rebuild his life.Nobody talks about these things. The entire system of brokers and finfluencers is designed to get you trading, at your expense. 9 out of 10 lose money. And the show goes on.https://lnkd.in/gsBs8szW
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Shivaprasad TV
#InnoDigits #VisualValue #DataArt #RiskCheck #CashFlowView
1d
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I consistently achieve returns from Futures and Options (FnO). For three weeks each month, I double my money, but in the fourth week, I erode my capital.
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Prashant Tandon
Executive Director - Waterfield Advisors
9h
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Thanks for highlighting this important issue, Neil Borate Very few “successful” traders do interviews; they prefer “private” lives. How many people have heard of Stanley Druckenmiller - 30 years track record with no down years!Professional trading needs years if not decades of practice and most importantly “training the mind”. “An Analyst is a Master of Observation, A Trader a Master of Self”And that too doesn’t guarantee success. And all suffer drawdowns. Drawdowns are very important for learning and development. The odds are always stacked against you!History lesson: the first batton to fall in GFC 2007/08 was the quant funds run by Bear Strrns and Goldman. PS - Late Jim Simons was an exception to the above
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Joonu Thomas
1d
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The 'O' in F&O is a minefield. Get into it only if you know its intricacies.
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Rachna Monga Koppikar CFP®
Helping Families, Individuals, Entrepreneurs, create wealth through strategic mutual fund investments and protect assets through insurance
20h
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While I am yet to read the full story, at some level it's family encouragement too right? I understand at some age level kids are more influenced by the world of instagram and then it leads to other things as they grow up. So the first level of check comes from home where they ought to be told that the world isn't as rosy as Instagram or other SM shows it to be. And if this checkgate is not in place then there is no stopping of the kind of influence the world will try to give. Just seeing things from parent level.thats all
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Aditya Darandale
9h
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Neil Borate It is a Game of Hope...you play until your hope dies...
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Amitvikram M, PMP, PMI-ACP
Program Manager at Tessolve semiconductors
1d
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As Warren buffet said derivatives are Weapons of Mass destruction, many people forget that it has been designed for hedging and price discovery, but many want to make out of it without knowledge.
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Ganesh S
Product Manager | Angel Investor | Story Teller | Derivative Strategist | SBI Mutual Fund | IIM Kozhikode
21h
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If it is a zero sum game, how 9 out of 10 lose money? And in this 9, whether AMCs that use derivatives for hedging are included? Or is this 9 out of 10 just retail?
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Deepak Dwivedi
Software Engineer | Software security | (ISC)² Certified in Cybersecurity
1d
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Greed can make you blind. F&O market is literally a gamble for retail traders with limited money and limited knowledge. I have seen people showing off their profits in F&O accounts. Stay away from them.
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Neil Borate
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How to convert your #mutualfund units from demat to Statement of Account (SoA) and vice versa. A very practical guide by Anil Poste https://lnkd.in/gi_Qqxm8
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A fun conversation explaining the basics of #mutualfunds with Kunal Shah of Upsurge.club in Hindi. Do watch: https://lnkd.in/gG3gNdX6
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Sebi wants RIAs do avoid unregulated products. Fine. But things like Wills, Tax, Loans & Foreign Stocks are legit parts of financial planning. Time to create a 'whitelist' of unregulated but kosher products. Story by Sashind Ningthoukhongjam https://lnkd.in/gDVTtFZv
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Neil Borate
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Do read!
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Neil Borate
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Axis Bank has launched a card so high end that<1k customers expected. Enter, Primus. Joining fee of 5.9 lakh. But good reward rate of approx 5% (via partner miles). Free companion air tickets and entry into exclusive restaurants. Story by Shipra Singh https://lnkd.in/gis654jM
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Neil Borate
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A quick video summary of the P2P lending industry problem and why they may have to halt customer withdrawals
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Neil Borate
Heading the personal finance team at Mint
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The people’s bank that LiquiLoans has built livemint.comIndia's P2P lending industry is on the tenterhooks. It may have to STOP redemptions this week unless it can get RBI relief. Let me explain why.First, a primer on P2P lending. Concept is simple. A platform (licensed as a P2P NBFC by RBI) matches lenders and borrowers (both ordinary people). Max lender exposure is 50 lakh per lender - keeps out the big money. But people don't like the hassle of selecting borrowers. So the platforms came up with some creative interpretations of the rules. What are these?1) 'Secondary market' in loans. If I place a redemption order, the algo 'sells' my loan to another guy. All in the background - needs no manual intervention by me or the other guy. RBI has banned this. This was how they gave 'instant liquidity' after a 3 month lock-in.2) Using the spread between lending and borrowing to absorb losses. Very similar to a bank. Not permitted. Now any loss must be borne by the actual lender.3) Tie ups with fintechs so that money only goes to their users (think of Cred and Bharatpe and the 9% and 12% clubs). The P2P NBFC just acts as a 'router'. Not allowed.4) Assuring return. FLDG (First Loss Default Guarantee) from fintechs. Both were anyway banned.5) T+1 settlement of each repayment. The money must go from the lender's account to escrow and then to borrower and vice versa. The P2P platform can't allow you to 'check box' and just redeploy the maturing repayments to new borrowers. Imagine the cost and hassle of paying out 10 rupee EMIs every day! T+1 kicks in after 90 days.Put together these reforms mean the end of P2P in India. The industry is desperately knocking at RBI's doors get some relief. But why might withdrawals stop? You see to comply with the circular, the P2P NBFC cannot shuffle your loans anymore to other lenders on the platform. So your exit only comes when the loans in your portfolio mature.The circular is silent on grandfathering and went into effect immediately on Friday, after market hours. Either the P2P guys honor redemptions this week and violate the circular or they stop redemptions. This sorry state of affairs is a result of RBI's inertia for the past 4 yrs. It allowed the industry to grow. About 10-15 lakh small investors and 10k crore in disbursals have happened. P2Ps argued that RBI knew everything, inspected them regularly and allowed their operations to continue. Hence it was all legit. Now it is not. I repeat. @RBI, what were you doing for the past 4 years? If you want some background on P2P, read my earlier story on the largest P2P player Liquiloans. https://lnkd.in/gbh7uDBW
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