A caselet of Behavioural Finance
Mr. Amar Akbar Anthony is a 72 year old young man. He wants to help his daughter (Let us call her Rima Rehana Rosy) with financial planning, who is around 35. Rima Rahana Rosy is earning 50,000 Rs. Per Month but has not started saving for the future or any financial goal. Her father is very cooperative and know a bit about savings etc. She consults him for financial planning advice. He suggested following points to her: Do not invest in the market (share). It is a gamble. Mr. Amar Akbar Anthony thought like that because his brother had lost a lot of money in this share market. Open a PPF account Take LIC policies (endowment plans). Start an RD account with a nationalized bank only. As private banks are not safe. Buy a house. The bigger the better. Start accumulating a lot of gold as it is a great savings investment. What should Rima Rehana Rosy do and not do? What should Mr. Amar Akbar Anthody do and not do?