'Isn't for folks like you': Shankar Sharma on how his sister became 'wealthy beyond dreams' without investing in stocks

As markets continue to bleed, veteran investor Shankar Sharma told how his sister and brother-in-law became 'wealthy beyond dreams' without investing in stocks or mutual funds (MFs). Sharma said that his sister and brother-in-law live in a small town. 

He mentioned that they have consistently asked him on where/how to invest in stocks for the last 35 years. Sharma noted that he advised them against investing in stocks and/or mutual funds consistently. 

"My sis & bro in law live in a small town. Have pestered me for 35 years, 'Tell us where/how to invest in stocks/MFs'. My standard reply: 'Stay away. This isn't for folks like y'all. Put 40 per cent in good FDs, 30 per cent in gold, 30 per cent in raw land 25 kms out of town'," Sharma said in a post on X (formerly Twitter). 

So, how are they doing after following Sharma's advice? The veteran investor said that his sister and brother-in-law are "stress free, liquid and wealthy beyond dreams" without worrying about any market fluctuations -- Reserve Bank of India (RBI), US Federal Reserve's announcements, trade wars and other factors. 

Sharma's post came amid a decline in mutual fund inflows for February, with net equity inflows totaling Rs 29,241.78 crore, a 26.29 per cent decrease from January's Rs 39,669.6 crore. Overall mutual fund inflows fell by 79 per cent in February, paralleling a 5 per cent drop in benchmark indices Nifty 50 and BSE Sensex.

Last week, Sharma commented on the pain felt by new investors, especially those cutting down on systematic investment plans (SIPs). “Stock markets — this is the way the game works. Like I said earlier, let them also suffer what we have suffered over 35 years,” Sharma said in an exclusive conversation with Business Today Executive Director Rahul Kanwal.

In another social media post, he warned the current bear market is a "100 per cent" local issue that has to be solved without global intervention. He said while previous downturns saw coordinated recoveries globally, India's current challenges are uniquely domestic. 

He gave the examples of the 1992 Harshad Mehta scam, the 2000 dot-com crash, the 2008 global financial crisis, and the 2020 COVID crash to substantiate his point.