As we have seen with previous black swan events such as the 2000 tech bubble collapse, the 2008 GFC (Global Financial Crisis), or the current Covid induced financial crisis, the future is unpredictable. However, how one responds to uncertainty can be planned well in advance. Unfortunately, we see many investors getting swept away with emotions of fear and greed and responding to market noise without proper heed to the relevance of their investments to their financial goals. To survive the market ups and downs and stay on the path to achieving your goals, it’s necessary to have the right mindset and follow certain principles to be a thoughtful investor.
To sum up, let’s see the principles that make a thoughtful investor
|Thoughtful Investor||Not a Thoughtful investor|
|Saves for a rainy day||Withdraws investments when in urgent need of money and upsets financial journey|
|Looks beyond returns for sustainable growth||Chases bottom lines|
|Builds wealth for the long term with discipline and patience||Books short-term profits|
|Looks beyond traditional forms of buying gold such as ETFs and mutual funds||Buys physical gold and end up paying high markups and locker charges|
|Overcomes emotions to make a rational decision||Swept with emotions of fear and greed|
|Diversifies portfolio with a prudent Asset Allocation Strategy||Chases top performing sector or asset class|
|Keeps it simple with a Multi Asset Fund of Funds||Invests in conventional fixed income investments and misses out on real returns|
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