KEEP ENVY AT BAY

The reason we go so wrong in our investment is because of our lack of conviction in the investment process. We believe that markets give returns 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 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 that 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 seemed 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 behavioral issue and does not end here, and soon post-purchase dissonance once again shows up. Therefore getting too involved with your investment many a time is a recipe for disaster and a good advisor will do his job well by preventing the investor from falling prey to this behavioral disorder.

The best way to invest is to get educated, get a 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: Praful Patil Firm Name: PATIL INVESTMENTS Mobile: 9833473537 Email: praful@patilinvestments.co.in