Beginning of a year. Beginning of a decade actually 😃
So, as we embark on a fresh new journey towards a #HappyNew2020, here are some of my learnings from the past decade -
So, as we embark on a fresh new journey towards a #HappyNew2020, here are some of my learnings from the past decade -
Don't spray & pray. Have an objective!
Chalk down your objectives & invest in only those products which help in meeting your objectives. Spraying your money across irrelevant asset classes & praying for returns is not gonna help!
Chalk down your objectives & invest in only those products which help in meeting your objectives. Spraying your money across irrelevant asset classes & praying for returns is not gonna help!
Don't fall in love with an asset class!
Any asset is meant for an investor at a certain point in time. In India, investors tend to simply love an investment product until their very last breath.
If they love FD, they love it till eternity. DON'T fall in love with the asset!
Any asset is meant for an investor at a certain point in time. In India, investors tend to simply love an investment product until their very last breath.
If they love FD, they love it till eternity. DON'T fall in love with the asset!
Probability vs Possibility
People want very high returns BUT very high returns come with lower probability.
Say if you were to lose 20 kgs of weight, there is a 5% chance that you do it. But if you want to lose 2 kgs, there is a 90% chance to achieve. So focus on probability!
People want very high returns BUT very high returns come with lower probability.
Say if you were to lose 20 kgs of weight, there is a 5% chance that you do it. But if you want to lose 2 kgs, there is a 90% chance to achieve. So focus on probability!
Start learning finance if you haven't already!
I've always been saying that Finance is NOT an optional subject. It is the need of the hour.
Learning finance would certainly help you make analytical decisions & do better!
I've always been saying that Finance is NOT an optional subject. It is the need of the hour.
Learning finance would certainly help you make analytical decisions & do better!
Understand Risk & Measure it!
Investors measure Returns in numbers (10%, 15%, etc.) BUT Risk is always measured in English (Low, Medium, High)
Statistics is over 100-year-old subject! Use it to measure the risk levels of your portfolio.
Investors measure Returns in numbers (10%, 15%, etc.) BUT Risk is always measured in English (Low, Medium, High)
Statistics is over 100-year-old subject! Use it to measure the risk levels of your portfolio.
Choose the Right Wealth Advisor!
Make sure you ask your advisor some relevant questions like -
a. Where do you invest your own money?
b. At what frequency do you review your client's portfolio?
c. Total no. of clients served?
d. What is the risk-adjusted return delivered?
Make sure you ask your advisor some relevant questions like -
a. Where do you invest your own money?
b. At what frequency do you review your client's portfolio?
c. Total no. of clients served?
d. What is the risk-adjusted return delivered?
Be Strategic rather than Transactional!
Money management is all about how each constituent works with each other. Picking an investment product on its individual merit may not be the right thing to do.
Investment decisions should be on portfolio level and not fund level.
Money management is all about how each constituent works with each other. Picking an investment product on its individual merit may not be the right thing to do.
Investment decisions should be on portfolio level and not fund level.
So in all totality, these are some quick tips that you can have a look at as we move on to a brand new decade ahead & start afresh!
A very happy new year (and a decade) to everyone 🎉
#happynewyear2020
A very happy new year (and a decade) to everyone 🎉
#happynewyear2020
