This thread will elaborate How 'ESPS' of Public Sector Banks turned out to be the biggest loss making instruments for their employees ever. Anyone who invests in the market always remember these rules and invest accordingly:
First is 'Risk Appetite'. Not everyone invests in shares, and even if one does, they does it according to their 'Appetite' for absorbing risks. Bank literally forced people to invest their hard earned money in the shares and that too way way above their appetite...
Second is 'Diversification'... One Golden rule of the investment is 'Never Put all your savings in One place'. Our PSBs literally forced people to invest in equities and that too in high volumes..
Third is 'Never Invest in Stock Market By Taking Loans'... We all were always taught in the banking that Banks never lend for speculative purposes. Here employees were forced to avail the loans and then purchase the share as per 'Quota' alloted to them..
People who were already buying 'Equities' by going way above their 'Risk Appetite' ended up investing a large chunk of money and that too by paying interest on the loans availed. A huge receipe for a disaster they created by themselves.
And last but not the least, Show off... I very clearly remember an officer from my institution who invested 7 lakh in the shares by shelving all his savings (FDs, KVPs, NICs and Other Shares). He got special appreciation letter from ED. That was huge, everyone congratulated him.
By the time I am writing this thread, his investment of 7,00,000 rupees in #ESPS stands at a devastating 2,77,375 rupees. So much for the sake of simply getting into the good books of the higher authorities.

Well results are here, and future is bleak. Very bleak and scary 🙏
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