Man Seeks Help After Father Puts Rs 75 Lakh Family Savings Into Single Stock: 'Portfolio Down To Rs 30 Lakh'

A son has sought the internet's help after discovering that his father had invested all of the family's savings into a single stock. In a now-viral social media post, the son detailed that his father had invested Rs 75 lakh since starting in 2013, but the portfolio had now shrunk to Rs 30 lakh, prompting him to intervene. He explained that his father did not have much knowledge about how stock markets operate and decided to park the savings money in the one stock suggested by one of their relatives.

Since the father did not know the concept of diversification, the same stock was bought over and over using three different demat accounts.

"From 2013 to around 2020, whenever he had savings, he invested more into the same stock instead of diversifying. The investments were spread across three demat accounts: My mother's demat account: approximately Rs 30 lakh. My uncle's demat account: approximately Rs 20 lakh. My father's demat account: approximately Rs 25 lakh," the son wrote.

Highlighting that the amount represented all of his parent's life savings, the son said it had been an emotionally difficult period for the family.

"My father is extremely disappointed and feels responsible for what happened. I've now decided to step in and understand the situation properly instead of making emotional decisions. I want to learn from people who have been in the markets for many years," he said.

"I'm not looking for sympathy or "you should have diversified" comments. We already understand that concentrating everything in one stock was a huge mistake. I'm looking for practical, rational advice on what the best course of action would be from this point onward."

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'Diversified Basket'

As the post gained traction, a section of social media users advised the son to immediately cut the losses and start afresh while others told him to hold a little longer.

"Better to exit and invest in a diversified basket," said one user while another added: "Remember, Rs 30 lakh is better than zero lakhs."

A third commented: "The stock is bound to slowly recover if no further compliance issue pops up. If they use the cash flow wisely, chances are the stock might recover faster than expected. I would hold and see how this is getting played if i were you."

A fourth said: "The Rs 75 lakh is gone. Don't let it influence the next decision. Ask yourself: Would I put Rs 30 lakh into Zee today? If not, that's your answer. Capital preservation and disciplined compounding beat hope almost every time."