We always watch the movie which is getting released every Friday (though there is no proof that the movie will be a blockbuster or not), we always like to wear a new dress to impress colleagues, friends and the social circle (every weekend), even though there is no real need, we always like to plan anything with an objective of instant gratification over delayed long term gratification
In finance, this excitement does not fulfil a real man’s objective of staying long and staying invested….. Looking for the next big stock idea or the best performing fund is never the right idea to invest in as investments need to be for the longer term based on goals.
People confuse investment with trading which is not true. Trading will always have capital loss/gain, whereas investment, once it is made with a reasonable time frame with the right asset allocation, delivers compounding return and generates wealth with tax-efficient solutions
Hence, whenever you plan your investment, identify your short term (or) medium-term (or) long term goal and then, choose the ideal investment based on your risk appetite and then consider funds. Identification of funds should be the last option in an investment. Risk-adjusted return (equity, debt and other asset class combination) and your GOAL should be the single most driver to invest
