Don’t follow Returns….
An investor always tries to follow returns in bullish market. They are least concerned about bearish phase and other parameters to judge the fund. Return is one of the criteria for the selection of a fund; investor should consider other ways also.
In bullish market, people invest in equity funds because either they see good returns of funds or they listen to their friend’s advice. The investor does not give due consideration to the concept of mutual funds. Often they become more bullish than an adviser and suggests everything themselves like selection of funds, advises others about same without understanding need and requirement. They don’t want to miss this bus and become center-point in their group who suggests best return giving funds. Moreover the easy access to technology has not only worsened the situation but made the subject more complicated as technology shares general objective and overview of funds.
Problem starts here only, if we want to reach Jammu from Chandigarh i.e. about 350 kms in 3 hrs by road then we have to take some extra risks. We have to run the car by 150km/hr average, so it may cause an accident resulting not to reach destination. It means here time is like a return which we follow without understanding our need. If we can reach Jammu by 5 hrs with calculated risk on a speed of 80-100km/hr then why are we looking for an alternate that can be dangerous for us?
So, it means without understating the basic requirement we don’t need to jump the return part only for selection of funds. A client with the time horizon of 1-2 years should not adopt the equity funds with 25% last one year return. The fund which gives 25% positive return last year can give 25% negative return also in coming year, so basic concept should be clear before investing. Every individual has different need, appetite to risk, time horizon, behavior etc. By seeing others investing in X, Y, Z funds the investor should not copy same into his kitty. Before investing in any product, firstly investor has to do goal planning. Return of the fund is always a last thing to select after understanding the concept of investment which falls in investor’s goal planning.
Don’t rush to returns while investing…
Always consult the advisor before taking any decision and share your exact requirement to get better advice.
Invest Mart
Exactly don’t go for higher return but for save investment and return
Select good funds
Choose potential fund
✌️
Only reputed mutual funds
Choose good investment planner
Ok
You are right. But most of the time market is sentiments driven.