Mr. Parag Parikh was a highly regarded and respected stock market veteran. Beginning his career as a stockbroker in the late 1970s, he founded Parag Parikh Financial Advisory Services Private Limited in 1992, which in turn has sponsored PPFAS Mutual Fund. There are many rules Mr. Parag Parikh followed himself for his consistency and financial investments and plannings, some of his major rules can be checked below:

·  Don’t take your investment decisions emotionally: We as human being have a mind as well a heart. Normally, we are supposed to make decisions by our rational mind, but many of the times we make decisions by our heart because we are human beings and we make those decisions out of our heart. They might not be necessarily in our best financial interest and that’s why we have many smart investors making big money mistakes.

·  Don’t follow the fancy stocks: Usually people have a habit of investing on hot sectors or hot stocks, they buy certain stocks in high price knowingly or unknowingly and when the euphoria ends, they suffer major losses.

·  Show courage at the right time: When the market and economy start looking bad, people tend to run away from the market due to which good company stocks can be at cheap prices and great valuation but at such times we people are running away from the market. Most of the investors won’t grasp the benefits of such an opportunity and they also tend to stay away from the market following others. But at such times investors should show courage which is majorly an important part.

·  Don’t follow the herd mentality: If most of the others are doing something and doing the same without thinking is known as herd mentality. According to Mr. Parag Parikh, one should stay away from herd mentality and do analysis and make decisions themselves.

·  Understand the concept of value in use and value in exchange: There are many businesses where we are aware there can be a lot of growth but their businesses or pricing power might have restrictions due to such reason those businesses might be unattractive. For Example: Mr. Parag Parikh Used to say that there is a lot of demand for electricity but the company cannot change the phenomenal rate for the power. Hence, the power has value in use but not value in exchange.