Sometimes the best advice comes from the most unexpected places. For instance, Wayne Gretzky one of the best ice hockey players said something in an interview that not only was a great advice for younger ice hockey players, but also for everyone else in so many different contexts, including finance. What he said was, ‘I don’t go where the puck is; I go where the puck is going to be!”
In a simple one liner, Gretzky confirmed that his success did not come from chasing the puck. Instead, it came from staying ahead and by anticipating where the puck would likely go next. This is an exact notion is what a good financial plan needs.
For instance, so many people lose their money or go in the loss in the stock market because they keep making decisions based on previous investments and performances. It’s true you must learn from experience, but equally true is the fact that in order to move ahead, you must look ahead (and not behind).
So, if you are thinking of stopping your SIP or withdrawing funds because the market has underperformed now, we would advise you to not do that. Investment market is volatile, which means, there is always a possibility of the fund value increasing or decreasing. And, in order to make a good investment decision, it is crucial to focus on the potential returns instead of focusing on the past performance.
Now, the big question is, ‘how do you decide if the potential returns of a fund are worthy?’
As already stated above, investment market can be volatile, and making a wise investment decision requires a lot of time and patience for proper research and market analysis. Experience is the cherry on top. So, be ready to do the work.
Alternatively, you have the option to hire a financial advisor, as they know the market well and can give you sound advice on the potential returns of the funds.
Besides, a good financial advisor can also help:
- Re-direct your goals to the right path so you can achieve what you actually need.
- Manage your tax refunds so you could benefit from better returns.
- Plan your retirement, as to how much you will need along with the most convenient way to achieve that goal.
- Give you the freedom to be stress-free and enjoy your life while they take care of your finances.
Summary: An investment fund may not be popular or big but that does not matter. You ought to focus on the potential returns of the fund. So, stop running behind the schemes that are performing good right now instead chase those funds that have the potential to perform better in the near future, in accordance with your financial objective. And, in case you feel confused or find the process taxing, seeking help from a financial advisor is always a good call.
In case you have any queries or doubt, write to us at support@5nance.com or ring at our number 022-6713-6713.
