What Every Indian Should Know Before Investing 5Th Ed

by Vinod Pottayil

The personal investing space includes many investment options-from Fixed Deposits to PPF to Real Estate, Gold, Mutual Funds, Stocks, and more. This book aims to explain the majority of investment options available in the market. Along with explaining how each investment option works, the book also explains various aspects related to them, including their advantages, disadvantages, and tax implications. The book also has comprehensive chapters on Life Insurance, Health Insurance, National Pension Scheme, Writing a Will, Making a Financial Plan and Investment Terms—topics that ensure you get a complete view of managing your money. Written in simple English, this book is for people of all ages who want to be in control of their financial life.

Genres: Finance, Personal Finance, Nonfiction, Money, Personal Growth, Indian Literature, Self Help

512 pages, Kindle Edition

Published March 31, 2022

Reviews

[Nilesh Suthar · Rating 5 out of 5]

As the title says, it's a book full of financial wisdom in the Indian context. It's not an investment wisdom book, it's a proper financial planning guide. We have poor financial literacy in India and this is the kind of book which must be included in the high school curriculum. In some topics, more details would be better as it arises the curiosity in you but then, we have plenty of other resources to read after this.This is written in very basic english and with a lot of examples so almost everyone can understand each topic. A must read not only for investors but for every earning individual.

[Rohit Patel · Rating 5 out of 5]

A must read for anyone just out of college living in India. This book, about the very basics of Investing, will act as the first stepping stone towards financial literacy. The book discusses all the popular investment options available for Indians in a very systematic manner.

[Neena · Rating 4 out of 5]

The investment advice book covers different aspects of investing and is relevant mainly for salaried people and those who are well connected, especially those without many savings. It does not cover the endless atrocities of the shameless fraud extremely corrupt NTRO, CBI, security agencies freelancing for large corporates, who steal the savings of vulnerable indian citizens especially single women engineers from top colleges without a court order or legally valid reason to force them to agree to identity theft.
India has some of the best constitutions and laws in the world, however it one of the worst countries for honest, hardworking, competent engineers and other professionals, as the intelligence and security agency employees are often extremely corrupt, dishonest, lacking humanity, and cannot be held accountable for their their endless atrocities.
The book does not reflect the fact that single women engineers who work hard to save money are falsely labelled a security threat without any proof by the extremely corrupt indian intelligence and security agency employees, denied their fundamental and financial rights, how close relatives and some reputed companies like google, tata may also be allegedly involved in identity, savings theft of indian citizens .
,It is very frustrating when a person works hard for thirty years for an engineering degree, saving money, only to find that she cannot access her hard earned money due to corrupt indian intelligence and security agency employees who have stolen it without a court order or legally valid reason to increase the profit of large companies.If the book reflected the endless financial, identity theft frauds of cbi, indian security agencies on vulnerable citizens , it would have been more accurate and helpful for indian citizens

[Swastik Agarwal · Rating 4 out of 5]

A great overview of several investment options in the Indian context. It's probably a little too basic for someone who has a decent portfolio, but it's a quick and easy read, and has several little insights; definitely recommend if you're a beginner.

[Rahul Gupta · Rating 4 out of 5]

A good book for anyone who wants to take control of their financial life. Making a financial plan in the end through example was very helpful.

The concepts might change over time. The government of India should have an updated website for the same.

[Logesh Paul · Rating 5 out of 5]

Great and must-read book for people who want to know about the different financial instruments/options available in India.

Key Takeaways
- Each and every finance component is explained clearly and examples are really great.
- The finance planning part at the end of the book is what exactly I was looking for.
- The Goals based on various stages of life (20-30 yrs, 30-45 yrs, 45-60 yrs, 60 onwards) is well defined as it will suit 90% of people.
- Formulas to calculate investments.
- Points to Consider, Pros and Cons, Tax Benefits, Safety Meter on each component is curated well.

Overall: Highly recommend for novice and intermediate investors.

[Avinash Pandey · Rating 4 out of 5]

Crisp and concise narration of peculiarities bothering a naive Indian professional is addressed well. Though not universally comprehensive, it provides platform for people who are exploring investment options.

[Rohit Ghole · Rating 4 out of 5]

Good book for beginners; it covers right from basics to formulas you can use in excel to populate your returns amount or rate; tax impact and pitfalls of a certain financial product.

Removing one star for below mentioned
1. Book does not offer stats that could be very useful like average stock market return rate. Adding them in chapters like Mutual Funds, Fixed Deposits helps reader understand the volatility of market and how it evolved over the time or inherent fluctuations.
2. If author could share or provide impact of 2008 financial crisis on financial products he discussed in book; helps us understand how susceptible certain products are to market conditions.
3. I believe author Vinod Pottayil strongly suggests to go for Mutual Funds that are actively managed which may or may not offer better returns than passively managed mutual fund. Before reading this book I read I Will Teach You to Be Rich: No Guilt. No Excuses. No BS. Just a 6-Week Program That Works; on page 206 it covers section on Active Vs. Passive Management and Ramit walked through some stats that point out in the long run passive might be more probable winner. Now before everyone rushes to comment that it was for US based economy, I would like to point out that I am just suggesting author could back it up with BSE/NSE funds statistics helping readers make more informed decision.

[Aashish Satyajith · Rating 4 out of 5]

The book provides comprehensive coverage of the investment options available in India, followed by chapters devoted to a systematic approach to investing. Some timeless aspects independent of the investing options are also covered in the book, such as sensible financial goals depending on which age gap you are in.

Subtleties to keep an eye out for while investing in India, for e.g. the fact that the dollar conversion rate might affect your investments, form the cherries on top.

The book is a little dry (one can argue that this is simply due to the enumeration of options) but otherwise worth the read.

[Mansi Jain · Rating 5 out of 5]

I think this is an extremely well structured book with good depth of the traditional investment options available in Indian markets. This book covers tax implications, liquidity issues and any caveats which one should be mindful of when considering these options. Never having a formal education in personal finance, I highly recommend this to anyone getting started with building some good and relatively safe investment options.

also, I clubbed this book with Monika Halan's Let's talk Money, and I felt while Monika touches on these topic at a very surface level, she gives some good advice on how to plan the entire savings portfolio, and the two books are serving different purpose. Don't try to finish these books quickly, take in the caveats and recommendations on notes, highlights or save pdf of highlights from Kindle. We will need to come back to the books again and again

[Visunu · Rating 4 out of 5]

A book that should be in every Indian's shelf. The basics on investing.

[Boopalan · Rating 5 out of 5]

This is the best Indian version of "Investment for dummies".

[Arya Goswami · Rating 5 out of 5]

This is one of the best financial, self-help book I have read till now for Indians. It covers the most important tooic that not many books cover for each investment strategy: Tax impact. Using the information provided for each investment option, each reader can make an informed financial plan.
Quick tip: Keep a note pad with you when you read this and note down the action items and complete it after each chapter.

[Ramki Sitaraman · Rating 5 out of 5]

Superb book - gives you all investment options with its pros & cons

Importantly, anybody with less financial knowledge can understand it

[Aniket Sharma · Rating 4 out of 5]

Must read for beginners .
4 stars are only for beginners.
Those already having good knowledge of investment may not find it helpful.
Have a look at 45 sec short review video
https://m.youtube.com/watch?v=fhWpc7t...

[Pankaj Wagh · Rating 4 out of 5]

This is a book with every option of investing. From stocks,real estate,gold,government bonds etc. you will get to know everything.

[RAJEEV SHARMA · Rating 5 out of 5]

Changed the way I used to manage my finances. A must-read.
A very powerful tool for the new earners.

[Ishan Agrawal · Rating 5 out of 5]

Compounding is the 8th wonder of the world as they say. Investment not only helps in retaining your current wealth but also augmenting it to a level that you can focus on your retirement plan without much fuss. But is investement enough? Don't we need a proper financial planning as well so that we always have some funds for emergencies too and just enough to segregate in such a way so that they can be used for necessities, comforts and luxuries . This meticulously written book provides answer to this and various other questions that revolve around finance.

Since past few years thankfully due to my parents guidance, I have become somewhat aware about the need to plan our day to day expense and as the basic rules of economics also say that only when there is a constant cash flow of incoming and outgoing income , only then the sustenance of an individual and thereby a nation will be possible. But keeping all your eggs in one basket is never a good strategy and hence thinking that the amount in bank with the measly saving bank interest of 2-3% will help is just equivalent to living in fool's paradise as it can't even beat inflation.

There have been numerous books like Rich Dad Poor Dad and a few other less popular ones by Indian authors that I have read but then either they were not much indic in nature or dint provide full comprehensive information. I wanted all my needs to be completely fulfilled using one source and this helped me in that . Such well detailed writing with a spot on explanation and visual aid helped a lot in making informed choices.

Most of the books out there focus on why of investing and this one finally tells how it is to be done. The details of every option out there is available and author's sincerity and devotion can be made out from the fact that this is the 5th edition of the book as he updates it in every 2 years. This is one of those work that needs to be kept as close as possible at all times and revisit whenever one find himself short on planning strategies.

Highly Recommended and truly an invaluable ornament to possess!

[Manoj Gupta]

Good for beginner level understanding of all the investment options in the market.

[Sudhakar · Rating 4 out of 5]

Basics of investing.

Basics of investing, Neatly explained about basics in each department. It's helpful for beginners to learn the things of investment

[Vinkush Dhamija · Rating 3 out of 5]

The book is for people who are beginners and have not read anything on personal finance. It presents concepts in a simple manner which made it a good read.

[Vinoth Kumar Kannan · Rating 3 out of 5]

If you're pretty young and have no exposure to Indian financial products, this would be an eye opener. Simple language and you can skim a lot, especially if you are pretty well acquainted with the items discussed. For me, the topic on "Women & Investing" was just a page filler and totally unnecessary. However, the "Making a Will" part and "Tax Impact" parts on each sections were kinda good to know. So, a decent one time read. I'll definitely suggest this to youngsters who just finish their college or so.

[Kanak · Rating 5 out of 5]

Eye Opener for a Novice Investor

The language of this book is very simple which could be understood by any layman person.It clarified many concepts and threw light on many schemes that exist but people are not aware of it.This book is an eye opener.I will highly highly recommend this book to anyone who is interested in learning basics about investing

[Kalp · Rating 4 out of 5]

Good overview of current investment options in indian market. Easy and simple language with appropriate examples and formulas. Very much recommended to beginners who want to understand investment terms and want to dive into the world of investment...!!!

[Abhinav Suryawanshi · Rating 4 out of 5]

An awesome read...
Covers almost everything that is there to know about investment in India.

[Vikrant Pawar · Rating 5 out of 5]

Good for beginner



Has all basic info to begin with investment. Also clear doubts in crisp manner
Good book to keep track of financial

[Sandy · Rating 5 out of 5]

Really really great eye-opening book for an investor! The details are crisp clear with proper practical examples and explanation! Just Wow!

[Robin Bhan · Rating 4 out of 5]

An awesome book which everyone should have.

[Mohit Parikh · Rating 5 out of 5]

Simple. Crisp. Nothing that you can't find on the internet but devoid also of all crap. Trustworthy.

[Abhinav · Rating 3 out of 5]

I purchased this book sometime during the winter of 2019 when I'd just turned 18. With an intention to become more informed of the impending adulting, I would be experiencing another four years later. And funnily enough, I would eventually unfurl the first few pages of the book in July 2023.

I am mentioning this because the edition of the book I'd picked up seems to be a little outdated for my current tastes, given the seismic change the Indian Economy has undergone since COVID. Personal finances have practically consumed every Indian Household, and previously esoteric terms reserved for educated people like insurance, emergency cover, and recurring deposit came into common man’s parlance. UPI payments have consumed even the most remote hamlets of India, traversing into a cashless economy.

Witnessing this orbit shift, I think I must also add that, by this time (between April 2023- June 2023, during the fag end of my engineering in Delhi, once I had in my possession a Pan Card, I initiated SIPs in 4 different mutual funds in place. Whilst also making some reasonably informed investments in the stock market. A decent mix of large-cap, mid-cap and small-cap investments in my name to be proud of. I can assume, I had a crude idea of the importance of investing early. Having these disclaimers set in place, let me elaborate further on what I liked most and least about the book.

What I LOVED about the Book.

1. This book is certainly for someone who doesn’t know “yet” why investing is so important and why someone must invest to hedge against an uncertain future. Leading me to wonder how this book also suffers from the phenomenon of “Words Written for the Future”. Basically, a book suffering from being written with the wrong timing. This book certainly deserves generous praise for the crispness of its contents, allowing any layman to collect and read it within one sitting if they want to.

2. This book is only valid for teenagers and those in their early 20s who are yet to delve into markets and aren’t aware of the intricacies involved. 

3. Finance until recently was made to sound esoteric and scary. Most of the decisions pertaining to the finance of the Indian Household was taken care of by the patriarch (preferably male) of the family. 

4. Finance was mostly reserved for people who already possessed some wealth by virtue of their inheritance and sought to expand their wealth further using techniques familiar to them or heeding to the advice given by the family CA or their personal financial advisor. This book beautifully concurs against that disparity and creates a sense of a level playing field for all of those wanting to explore the reaches of investing and personal finance. 

What I didn’t like so much about the Book.

1. This book reads like a couple of Wikipedia or Investopedia webpages put together so that any layman can pick it up, and understand the contents in one reading. That means anyone with a decent bent for understanding finance would not readily appreciate the book.

2. It lacks the technical and mathematical depth which a concept like investing and finance deserves. More serious ratios like Return on Investment, Return On Equity, and CAGR haven’t been given the attention it deserves. 

3. People readily associate Investing with Stock Market or with Mutual Funds. I strongly feel this wasn’t done due justice to. I am saying this because a layman investor would not be able to make head or tail with a term as abstract as NAV. If someone is speaking about Mutual Funds, terms like Rolling Returns, Trailing Returns and Annual Returns must also gain equal if not more attention. Rudimentary definitions of investing concepts and calling it an investing book won’t do. 

4. Certain chapters of the book feel rushed and completed on assignments rather than doing the due diligence on expanding further.

5. An unnecessary amount of elaboration was done in the final few chapters of the book. I am referring to the Life Insurance and the Health Insurance chapters where the author could have perhaps edited some of the redundancy and elaborated on contents where it deserved.

I guess I might be a little too harsh with my review here since the main onus of the author was pretty clear through the introductory pages of this book. This was an Introductory Level book where the author expects the reader to do further prudence on various aspects of investing as he or she desires to delve further. For someone wanting to invest further in Gold or Real Estate, they would definitely want to research and read further after the initial introduction from this book. 

But for someone already invested in the market, this book is certainly not for you.