When a coaster car is speeding up, the actual force acting on you is the seat pushing your body forward. A roller coaster takes advantage of this similarity. It constantly changes its acceleration and its position to the ground, making the forces of gravity and acceleration interact in many interesting ways. That’s why it is called Adventurous sports or Game.
Mutual Funds and Direct Equity is more or less compared to this roller coaster ride, those who are willing to participate in the ride will be adventurous and they are thrilled, those who do not have the ability to take it and the result will be FEAR. (False Evidence Appearing as Real). I am not making a comment here, whether it is good or bad, but having taken the ride, you should not come out for a certain period of time, even if you really don’t enjoy and you are dreadful.
When somebody invested in mutual funds, before that they know little bit about volatility. Your financial advisor like me also told before suggesting any funds that there will be 10 to 20% of your portfolio can come down in a shorter span of time, but if you stay invested for 3 to 5 years you will make 15% depends on which type of market you entered which we eventually know which is top and which is bottom.
Many will agreed that and invested and now seeing your portfolio down, especially in the last 2 weeks after the budget nearly 7% down, it is not easy to digest, I can fully understand your concern. But, the only question you have to keep ask yourself is, whether this investment I have made is for short term or long term. As long as long term GOAL or Objective is intact, no need to worry about this volatility. That is the innate nature of this investment.
Just imagine a situation, you are judged by your employer everyday performance, will you like it or you will be more pressurised? Nobody will do well, if the performance appraisal is on a daily basis. We are here to be for long term, whether it is investment or our profession.
Have you ever tested your real estate value, whether the property you live or rented or the plot you bought in the last 5 years. If not, go and check then you will understand how better your mutual fund investment is. Definitely the value is lesser than what you have bought considering all the EMI you have paid, but you never ever felt the same, because you are very clear this is not for short term. Please do remember this asset you are creating by taking loan as compared to investing your surplus in MF!!
When you can’t question yourself or nobody, then you will keep quiet. But, when you have somebody to ask or listen to your concern (especially MF advisor), you keep passing your worries. All right. As an advisor, I love to listen to your concern and your anxieties, sometime even your anger towards this investment. I keep reiterating one thing, please do remember, this investment is for long term, the present situation will not long last. This is the time to keep calm or start investing your surplus, these are the only two options or Mantra available to you.
I hope and personally believe, your portfolio will be in a good profit on or before March 2020, yes, you got it right, at the end of this financial year. Then you decide whether this investment is worth undergoing the volatility or better to lose the money to inflation, though it gives all the comfort of stability, and hardly any returns is the choice you have to make. As I keep reiterating Life is Full of Choices, Choices will have Consequences!!!
Happy to guide you during this difficult time, please do travel with me, I will rest assure your investment to be safe.
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