InvestorQ : What are the key lessons that individuals need to take from the Yes Bank saga?
vidhya Laxmi made post

What are the key lessons that individuals need to take from the Yes Bank saga?

Answer
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10 months ago
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For the people in general, the message to know their risk better and realize that there is nothing like a free lunch in economics. Like in the case of Global Trust Bank and UWB, investors and depositors must understand the risks better. Scores of investors had opted for deposits in Yes Bank because of the higher rates offered. Now most of these deposits are stuck. The same applies to bond holders. It is pointless to invest in AT1 bonds knowing the risks fully well and then behaving like an innocent retail investor. For equity investors, the key takeaway is that they need to focus more on gradual and long term wealth building. Fishing in troubled waters may look attractive on paper; but you may end up like Yes Bank shareholders. Clearly, you need to measure your risk before taking a call on your deposit decisions, equity decisions and your bond investment decisions.

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