Akshat Shrivastava Debunks Common Investing Myths and Reveals 5 Key Insights
Akshat Shrivastava, a prominent investor and entrepreneur, has ignited a lively discussion on financial independence with a candid post on X. Known for his straightforward approach to personal finance, Shrivastava shared five pivotal lessons from his journey of escaping the middle-class trap in India. His insights challenge conventional wisdom about earning, investing, and wealth-building, urging individuals to rethink their financial strategies.
Making Money in India: A Tough Reality
Shrivastava begins with a stark observation: “Making money in India is tough.” He likens the experience to running with an anchor tied to one’s legs, attributing this difficulty to high taxes, inflation, and a broker-driven economy. His message is clear—relying solely on investments for wealth accumulation is insufficient. He emphasizes the importance of actively earning, saving, and hustling. “Investing alone won’t make you rich. Stop with the trading BS,” he asserts, urging individuals to adopt a more proactive approach to their finances.
The Importance of Smart Investing
While Shrivastava stresses that earning is crucial, he also acknowledges the significance of investing. He warns against passive, low-return investments, such as fixed deposits, which often fail to keep pace with inflation. “If you’re growing wealth at 5% post-tax while inflation is at 10%, you’re losing money,” he cautions. Instead, he advocates for smarter, higher-return investments that can outpace inflation, ensuring that individuals do not inadvertently work their way toward poverty.
Being Contrarian: A Path to Wealth
Shrivastava encourages a contrarian mindset as a strategy for financial success. He argues that if everyone is investing in popular options like SIPs and mutual funds, relying on these tools alone is unlikely to yield substantial wealth. He draws parallels between these investments and ULIPs (unit-linked insurance plans), which were once heavily marketed but often underperformed due to hidden charges. “Be rest assured that you are not becoming rich in the long-term via that,” he warns, suggesting that a contrarian approach may be necessary for true financial growth.
Cutting Out the Middleman
Another significant point raised by Shrivastava is the prevalence of intermediaries in the Indian economy. He describes India as a “broker economy,” where intermediaries can diminish profits and inflate costs. “They eat into everything like parasites,” he states, urging individuals to minimize their reliance on middlemen in various transactions, whether in real estate, investments, or business dealings. By cutting out these intermediaries, he believes individuals can retain more of their wealth and make more informed financial decisions.
Emphasizing Learning and Positivity
Finally, Shrivastava underscores the importance of maintaining a realistic and positive mindset. He clarifies that being positive does not equate to ignoring challenges. Instead, he advocates for acknowledging difficulties, seeking solutions, and approaching problems with discipline and purpose. As an INSEAD alumnus and founder of Wisdom Hatch, Shrivastava has consistently transformed everyday financial challenges into valuable lessons, making his insights particularly relevant for those navigating the complexities of personal finance in India.
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