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!!

How to Retire Peacefully?

We all invest for some objective, but are the investment baskets the right avenue to invest?

Will it yield the required corpus in a particular time frame?

The image is based on true & live story of the happenings around.

I pray this should not be your case.

Educate yourself while Investing.

Keep right approach while Investing & stick to it.

Kaustubh Deole

Loss Aversion Biases

I find that some people are married longer to their stocks than their spouses. 😂😅😛

This is nothing but loss aversion bias.

People generally are reluctant to book their losses and keep holding the stocks in the hope to recover their cost price. And worse, few even average out the falling knives.

For an Investor, it is very important to accept the mistakes, learn from them and to move on.

It is far better to pay premium for excellence than to enjoy discount for average.

Kaustubh Deole

First Home Survey Poll

pexels-photo-106399.jpeg

At which age you purchased your first home?

Pls enter your answer in comment box – If not, then when are you planning to buy or Would you prefer to stay on rent?

Your personal data is secured.

IDIOT BOX

Akbar once put a question to his court that left everyone puzzled.

As they all tried to figure out the answer, Birbal walked and asked what the matter was. And so they told him the question.

‘How many crows are there in the city?’

Birbal immediately smiled, went up to Akbar and announced that the answer to his questions was twenty-one thousand five hundred and twenty-three.

When asked how he knew the answer, Birbal replied, ‘Ask your men to count the number of crows.

If there are more, then the crows’ relatives from outside the city are visiting them.

If there are fewer, then the crows are visiting their relatives outside the city.’

Pleased with the answer, Akbar presented Birbal with a ruby and pearl chain.

This is the kind of stories being dished out of business news channels day in a day out.

For example: take the question “Market kya bolta hai (What’s the market saying)” or

Where will the index be by in 5 years?

And haven’t you heard very intelligent and learned people saying that the index could triple in 5 years.

The use of the word ‘COULD’ is like Birbal’s answer.

Again we hear things like the market will rise provided “MONSOONS” are good, provided “FISCAL” situation improves but there are risks also like outcome of various “ELECTIONS”

Thus the media and experts are always ready with BIRBAL answers and like Birbal’s earned Ruby and Pearls the media earns huge advertising revenue by aggregating fools who sit in front the idiot box.

Kaustubh Deole