Swati CA

Swati_CA column in The Hindu Business Line

Monday, May 29, 2006

What a dismal status of financial literacy we have amidst us!


Financial illiteracy among investors?
From my bag, I extracted the day's newspaper and unfurled the stocks pages. "How many of you understand these pages?" Suddenly, everybody was ominously silent. My next question was, "How many of you invest in shares?" Manyhands went up cheerfully.
"What is your investment strategy? How do you make your investment decisions?" I asked and looked around. Kiran replied first: "I ask the broker." Pavitra aunty announced, "My friend tells me what to buy and sell." And Ramu uncle said, in a hush, "Don't tell anybody. The trick I follow is to toss a coin!"

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posted by Swati CA @ 12:30 PM  

4 Comments:

  • At 5:22 PM, Blogger S. Gnanaharan said…

    Dear Swati,
    Thanks for highlighting the importance of financial literacy for investors.You did the right thing by spreading financial literacy among your co-dwellers in the apartment.
    The need if two-fold.One, as Priya has pointed out rightly all our rural people should have basic literacy.This issue atleast in Kerala and Tamilnadu have nearly been addressed.The other parts of the country particularly the BIMARU states need urgent attention now.
    Two,functional literacy is no longer sufficient in this modern world.Digital Divide is all about the divide between those who can use computer power and those who can not.Now like in most other cases we have one advantage being a late developer or bloomer.The advantage lies in combining one with another.That is basic literacy can be given along with computer literacy - a two in one solution.
    But in the case of financial literacy the solution can come in a different form. That is by bundling all into one.Most of the people may not be investing in shares.But it would be next to imposible to find some one who is not interested in investing(if that word can be used)in gold.Everybody aspires to own a house or apartment.At some point of time one would like to buy some vehicle or other.All these involve understanding finance.It could be related to financial literac.It can happen through the involvement of relevant industry players.
    The most important problem confronted by the Insurance Industry starts from recruiting the Advisors.A properly designed Financial Literacy Programme (FLP) could solve all these and bring new investors into the market.
    Thanks.
    S.Gnana Haran.

     

  • At 2:07 AM, Blogger blogger said…

    I should really appreciate the effort u have spent in publishing such useful data..
    I added u r blog to my Fav.
    Was here from business line.

     

  • At 8:56 PM, Blogger blogger said…

    Swati,
    Nice to see u r comments in the column and thanks for stopping by the blog.
    I understand word 'BOSS' is little provocative,but my intention to have that title is different.
    As SMB have gaining grounds and Asian Markets are improving,I think we should start learning more asian languages.
    And it is very evident from the fact that so many B-Schools from West are dropping in India & China to explore the Emerging Markets..
    :)
    Keep rolling....

     

  • At 3:25 PM, Blogger DRP said…

    you have good articles. speak something on disabled at work place

     

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