OUR INVESTMENT DECISIONS - HOW CORRECT ARE THEY :

OUR INVESTMENT DECISIONS - HOW CORRECT ARE THEY :

We all keep earning and earning, running for and saving each penny through out the day but one thing that we ignore the most is managing the money that we have at our disposal. Most of us place our savings in LIC or bank Fixed Deposits so that our money is safe.

Just think don’t we love our children more than we love and care for our wealth, but do we keep them at home tied inside a room for their safety when we know that they are exposed to several risks when they are out on the roads with their two wheelers for commuting to and fro to their respective colleges and coaching centers.

We don’t do that, ………. Why?? for simple reason that caring for them excessively would stop their development and growth. But we don’t think likewise when we deal with our money. Putting money in extremely conservative instruments for sake of safety, contributes to negative returns and stops the free growth and multiplication of wealth.

Had everyone been thinking in same lines there would not have been any business established anywhere in the world because in business money invested is always at risk but no one would deny that richest people of the world are businessmen who have let their money venture in risk.

Their could not be any satisfying holidays or enjoyment without co-existence of risk to ourselves. Flying in aircraft to enjoy holidays in Europe invites certain level of risk. Traveling to spend holiday on a hill station is definitely more risky than staying in mundane. But that does not mean to take risk without reason or without understanding the purpose or to place it better without being trained to take that kind of risk.

In financial terms actually, we are not educated or trained hence we are automatically risk averse and thus lack interest placing our wealth in productive investments. Also people around us, who themselves are not even well literate and educated and who themselves are fighting their own poverty are the ones who advise us on our investment and wealth creation formulas.

Investment advisors are often our friends, who keep visiting us off and on, who are only driven by the underlying commission from the investments that we make through them. They have little knowledge of the products that they sell and are careless about the minimum professional ethics that they are required to practice as a result, we suffer losses and consequently take decisions of not investing in particular financial product ever after.

Careful analysis suggests that the problem is not in the particular kind of investment product but the problem is in our knowledge about the product and willingness of investment in that product. A fearful investment decision is likely to give losses as investor would remain apprehensive about the correctness of his own decision and is hence likely to prematurely withdraw his money gaining nothing and cursing the product and his advisor.

 So, lets make our hard earned money to be managed intelligently and invest in Mutual Funds with full confidence and positivity.

I recommend investment through SIP mode only for wealth creation. In case anyone needs more advice on tax implications, investment and portfolio management services, including health insurance he may contact me on rajivfcs@gmail.com or 9839034761