The reason we go so wrong in our investment is because of our lack of conviction in the investment process.
We believe that market's give return whereas returns come from the economy and are reflected in the markets.
Once an investor understands the concept of market returns and moves from Fixed Deposits to Equities, instead of being happy, the habit of looking around gets the better of him.
Not happy with substantially better returns than Fixed Deposits the investor's greed gets the better of him making him to yearn for more. 'Yeh Dil Maange More'
He begins to suffer from post purchase dissonance which makes him believe that he hasn't opted for the best solution/ product and the product owned by his friend / colleague etc is actually a better one.
Everything the other man or woman has looks perfect and all that he has simply seems imperfect and a mistake.
This kind of thinking makes him take knee jerk actions like selling out what he has and purchasing what someone else has.
Unfortunately this is a behavioural issue and does not end here and soon post purchase dissonance once again shows up.
Therefore getting too involved with your investment many a times is a recipe for disaster and a good advisor will do his job well by preventing the investor from falling prey to this behavioural disorder.
The best way to invest is to get educated, get conviction, gain confidence, be calm, stay invested and moreover stop looking at others.
An advisor, plays a vital role in controlling the emotions of the investor and preventing him or her from committing what can be termed as 'financial suicide'.
Name: Bazarwiz Financial Services
Firm Name: Bazarwiz Financial Services
Mobile: 9450529369
Email: care@bazarwiz.com
No comments:
Post a Comment