Gold- real estate, stocks or clarity — Finfluencer’s 3 rules for investors clueless about risky investments

If you’re a retail investor with little understanding of how markets work—and no real desire to learn—you’re probably better off avoiding equities altogether. Finfluencer Akshat Shrivastava, founder of Wisdom Hatch, in a recent social media post strongly recommended that investors who do not have a fair idea about how to invest in stocks or similar risky assets, should stick to traditional tools, like gold and real estate. 

In such cases, traditional assets like gold and real estate, despite their own limitations, are far safer bets. They don’t require daily monitoring, they aren’t as volatile, and historically, they’ve offered reasonable long-term value for Indian households.

He added if someone still choose to let someone else manage your money—be it a mutual fund distributor, a financial advisor, or a wealth manager—don’t hand over control blindly. You must ask tough, specific questions to protect your financial future.

“If you are a clueless investor. You are better off with gold and land. Stay away from stocks,” Shrivastava wrote on X. 

He added that keen investors should ask these three non-negotiable questions:

Where is your own money invested? Show proof.

If they can’t walk the talk, they shouldn’t be handling your money. A credible advisor or distributor should have skin in the game. If they’re pushing certain funds or themes, they should be investing in them too. If not, ask why.

What’s your investment thesis?

Don’t settle for jargon like “this fund has performed well” or “this theme is trending.” Ask why they believe in a particular strategy, theme, or fund. What are the underlying assumptions? Is it based on solid macroeconomic logic, earnings growth, or just momentum? If they can’t explain it in plain English, they probably don’t understand it themselves.

How will you respond to a 20% market crash?

Every market cycle has downturns. You need clarity on how your advisor plans to manage risk. Will they panic-sell? Will they rebalance? What’s the plan when fear takes over? If they don’t have a clear, structured response to volatility, you’re not investing—you’re gambling with someone else at the wheel.

Mis-selling, misadvice

All this discussion when a X user, Save Invest Repeat, highlighted that a growing number of retail investors are unknowingly falling into the trap of over-engineered mutual fund portfolios — thanks to poor advice from some mutual fund distributors (MFDs).

In recent weeks, several individuals have shared direct messages highlighting what their MFDs recommended. The trend is worrying.

In nearly 99% of the cases, the suggested portfolios are stacked with IPO-focused funds, flashy thematic schemes, and momentum-chasing strategies. Worse, most of these are “regular” plans—loaded with commissions and high expense ratios—leaving investors unaware that they’re paying significantly more in fees than necessary.

It’s a quick, efficient wealth transfer system—from the average Indian investor straight to the pockets of distributors and mutual fund companies.

Instead of guiding clients towards low-cost, diversified options like index funds or direct plans, many MFDs seem to prioritize commissions over client outcomes. The result? Portfolios with 8–10 overlapping schemes, minimal long-term planning, and excessive costs that erode real returns.

For retail investors trying to build wealth patiently and sensibly, this is a sad and unfair setup.

What investors should do:

To protect themselves from mis-selling and high-cost recommendations, investors are advised to take a few key steps. First, they should ask for direct plan options instead of regular plans, which carry distributor commissions. Keeping the portfolio simple by limiting the number of mutual fund schemes is also crucial, as too many funds often lead to overlap and confusion. 

Investors should focus on long-term financial goals rather than chasing trendy or thematic funds that may not deliver sustained returns. It’s important to always check the total expense ratio (TER) of each scheme to understand the real cost of investing. For unbiased advice, consulting SEBI-registered fee-only advisors is recommended, as they don’t earn commissions from product sales. In a country where financial literacy is still evolving, such steps are essential to safeguard the interests of retail investors and curb exploitative practices.