Invest 100% in stocks? Be aware of the bull market’s investing myths

livemint.com:

Subscribe to enjoy similar stories. Mumbai:Mairaa could hear Bryan Adams’ Summer of 69 as soon as she opened the door to her apartment. She knew that Vivaan, her husband, only played Summer of 69 on loop when he was feeling a tad down.

“What’s up?" she asked Vivaan as soon as she entered the bedroom. He was lying down curled up like a baby. “Oh, you have come back early," said Vivaan, who was a mid-level engineer in a software company.

“I didn’t hear the door open." “Well, if you blast music at such a high volume, there is no chance of hearing the door open," replied Mairaa, who had just finished her PhD and gone back to working for a company in the business of supposedly managing other people’s money (OPM). “That’s true." “So, tell me what’s bugging you?" “Well, I just saw this reel of a financial influencer." “And?" “He said that anyone investing in the public provident fund (PPF) is making a huge mistake because investing in stocks gives higher returns." “And?" “I have been investing regularly in the PPF, and now, I feel stupid." “Why?" “PPF gives a return of only 7.1% per year. I could have made much more by investing that money in stocks or even in equity mutual funds (MFs) for that matter." “Hmmm." “You have nothing to say on this?" asked Vivaan.

“I do," replied Mairaa. “But I have got this new coffee brand. Why don’t you first make a cup for both of us and then we can talk." “Sure." “And add a dash of soy milk to it," said Mairaa, as Vivaan left the bedroom.

“I was told it really elevates the taste." Vivaan arrived ten minutes later with two cups of freshly made coffee. “That’s what I really needed," said Mairaa, taking a sip and feeling refreshed . “Okay, now tell me," said Vivaan.