In a recent LinkedIn post, Nithin Kamath discusses the persistent and often repeated mistakes individuals make in personal finance, particularly in investing and insurance choices. Kamath highlights a surprising lack of creativity in these errors, suggesting that despite widespread advice and readily available information, many consumers continue to fall for flawed financial products.
Kamath opens by observing the cyclical nature of financial missteps, stating:
“When it comes to personal finance, people somehow keep making the same mistakes over and over again. There’s very little creativity in the mistakes people make.”
The Enduring Appeal of Flawed Investment Products
A significant portion of Kamath’s analysis focuses on investment products, specifically highlighting Unit Linked Insurance Plans (ULIPs) and endowment policies. He points out that financial influencers, serious finance writers, and the media have consistently warned against mixing insurance with investments, labeling ULIPs and endowment plans as generally poor choices. Despite this persistent barrage of advice, Kamath notes that sales for these products continue to grow.
“And yet, ULIP sales continue to grow and endowment plans continue to be sold. People continue to fall for the same pitches, despite all the articles, videos, and excel sheets explaining why these products are bad,” Kamath writes.
According to Kamath, the lack of complexity in understanding why these products are problematic should make them easier to avoid. He suggests that even a quick search on Google would reveal the issues. Furthermore, he points to the availability of AI tools like ChatGPT and Claude in 2026 as further resources that can easily break down the math and explain the downsides of such financial products.
Navigating the Complexities of Health Insurance
While criticizing the choices made regarding ULIPs and endowment plans, Kamath expresses more sympathy for consumers struggling with health insurance. He acknowledges that health insurance is genuinely complicated, fraught with fine print, room rent caps, waiting periods, and exclusions that are difficult for the average person to fully grasp. This complexity, he argues, can lead to unexpected out-of-pocket expenses even for those who believe they are adequately covered.
However, he circles back to his initial point, emphasizing that for products like ULIPs and endowment plans, there is “no excuse” for the continued poor choices, given their relative simplicity and the abundance of accessible information.
Leveraging Modern Tools for Financial Literacy
Kamath concludes his post by referencing a video by Prateek Singh from Zero1 by Zerodha, which details common investment and health insurance mistakes made by Indians. He recommends this resource as valuable for individuals seeking to avoid these pitfalls and suggests sharing it with friends and family.
In essence, Nithin Kamath’s LinkedIn post serves as a commentary on the behavioral economics of personal finance, urging consumers to be more critical and informed when making financial decisions, especially concerning investments and insurance, by leveraging the readily available knowledge and modern analytical tools.
📝 About This Content
This article is based on insights shared by Nithin Kamath on LinkedIn.
📅 Originally posted on May 9, 2026 | View original post on LinkedIn →