When you are in financial need, your relatives or friends may not lend to you even if the reason is genuine.
Sanjay Dutt’s biopic Sanju is breaking records on domestic box office collection. This movie has decent entertainment value across age groups. Sanjay Dutt’s life story could also provide with some important personal finance lessons. Here are some of them:i. Blindly following friends'/relatives' advice is bad
In our network, we are surrounded by people who cannot be trusted. In movie it’s displayed, Sanju’s friend consumes glucose but persuades him to consume drugs. Such ‘friends’ just love your money and don’t care for you. Similarly, there are so-called well-wishers who recommend us to invest in insurance policies or penny stocks which give poor returns in the long term while they themselves will be investing in financial assets which are giving inflation-beating returns in the long term. If the ‘Friend’ is an insurance agent or broker, those recommended insurance policies will earn them hefty commissions and trailing income on premium amount paid every year. It’s better to avoid such advices when it comes to investments.
ii. You can correct your past mistakes
Sanjay Dutt slowly got addicted to drugs and kept finding reasons to start consuming after discontinuing for a while. However, he overcame drug addiction after undergoing treatment in the US. Similarly, even you can overcome your past mistakes of investing in non-performing equities/mutual fund schemes, trading in high-risk derivatives for quick gains or simply investing all your money in physical assets (like gold, real estate, etc.) over financial assets (stocks, mutual funds, etc.) to achieve family goals.iii. Nobody lends in bad times
In movie it’s well portrayed that in many instances, your friends may prove to be of no help when you are in need. Your contacts and followers will ignore you. It’s important to note when you are in financial need, your relatives or friends may not lend to you even if the reason is genuine.iv. Don’t dabble in unknown stocks (drugs)
In his early life, Sanjay Dutt had consumed several types of drugs. Similarly, when you start earning and enter into stock market with the motive of making quick profits, you may end up buying unknown stocks on the exchanges. It’s recommended you do your homework (research) before investing in particular stocks.v. Don't blindly trust on news and advice given in media
This movie has criticized the role of media in downfall of Sanjay Dutt. It has been portrayed that media puts a headline news without any research to it and accuses the person.
Now-a-days, do-it-yourself kinds of investors rely a lot on the advice provided in media for their investments and they blindly follow the advices of financial experts. So, there are possibilities you miss out on good investment opportunities in stocks, mutual fund schemes, insurance, etc. since so-called financial expert in media gave poor reviews to them in bold headlines. In reality, investors need to do research of investment products, take advice of financial advisor as per requirements, identify his family goals and sync these investments with it based on his risk appetite.Follow @thanawala_hiralYou can now invest in mutual funds with moneycontrol. Download moneycontrol transact app. A dedicated app to explore, research and buy mutual funds.