Who is the No.1 ENEMY of your Investment?

Let me give you some options before you decide the Enemy.

  1. The Middlemen who sold you the Financial Products
  2. The Strategies you followed while investing in Asset Class / Products
  3. YOURSELF

I came across to a tweet from Kalpen Parekh, President DSP Mutual Fund.

The problem is with INVESTORS, but not with the MARKET.

DSP Equity Fund is one of the oldest fund of DSP Mutual Fund. The fund has generated 20% returns till date. However, the number of investors who stood with this fund for 24 years is less than TWENTY FOUR!!

 I am not defending DSP Mutual Fund or a fan of the DSP Equity Fund. This is just an example which I am sharing.

My point is to make you aware about who is your biggest enemy in your investment journey.

RETURNS CONSISTENCY since INCEPTION

Source: Advisorkhoj
Source: Advisorkhoj

The returns consistency for 20 yrs plus is 17.64

Above data indicates that the journey of 24 years it not smooth. It is kind of roller coaster ride for the investors.

Hence, as per the claim of Mr.Kalpen Parekh, the number of investors who stood with this fund for 24 years is less than 24.

It is easy to say that invest for long term and expect the returns like 15% to 20%. However, during the downtrend where the product or asset gives you -30% to -50% returns, then it requires guts to HOLD and BE CALM.

JOURNEY IS TOUGH, BORING, AND REQUIRES A LOT OF MENTAL STRENGTH to generate such decent returns. But it is not impossible either. The only thing that required is the investor’s MEDIATIVE MIND.

At a 7% return, Rs.1 today is worth Rs.15 in 40 years. But the problem is we want Rs.15 INSTANTLY or AS SOON AS POSSIBLE. Wealth creation is BORING and LONG-TERM process not INSTANT NOODLE.

The BIGGEST ENEMY in your INVESTMENT JOURNEY IS YOU and YOUR MINDSET.

Try to CONTROL IT and MEDIATE as much as possible!!

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