Whenever I send mails
about how the equity mutual fund has performed over a period of time; it is an
investment returns, which means the fund has delivered that kind of return, but
how many investor has really benefited out of it, hardly any percentage.
I keep wondering, why
there is a big disconnects between investment and investor returns. I started applying
my mind, looking for the reason and interestingly I found something, I hope it is
applicable to majority of the investors.
If you want to become a
cricketer, where will you spend all the time, the unanimous answer is; in the
ground and do regular practice. Similarly, anybody who wants to excel on
something, they invariably spend good amount of time in those areas. In spite
of their time and efforts, not everybody is successful in whatever they wanted
to achieve in their life.
Like Cricket, most of us
today enroll for fitness center and only 2% are committed and they only get
good shape and see the desired result. Like Investment return versus investor
return, any fitness center can boast that they are very good when it comes to
fitness, but whether all the individual enrolled will be benefited, is NEVER!
Today, everybody wanted to
multiply their wealth and wanted to live in today’s life style, to do this your
income alone will not be sufficient, and you need to invest too.
Why investor has not made
return, might be due to the following…
1. Investing on their own,
without proper guidance of professional will result in a disaster.
2. Investing without
understanding the risk versus reward, and so quit in between.
3. Investment is not goal oriented;
the moment some need arises they pull out the money, if it is invested for the
sake of investing or bought by force.
4. Hardly spend any time
on their investments and expect unreasonable returns.
5. Not willing to know or
learn about investment products, which is really very simple.
6. Compare short term
savings versus long term investment and draw conclusion.
7. Confused with Insurance
and Investment, and investing Insurance for long term.
8. Never understand the
importance of term insurance, and do not believe any insurance product is
derived out of term insurance.
9. Ignore medical
insurance and believe that they will not be hospitalized.
10. No home work is done
for choosing an investment or investment advisor and always last minute
decision and eventually pays the bigger price, will result lower return in most
of their investment.
To succeed in anything you
need a coach or professional in those areas, and your time and interest as well
as professional’s time will help to achieve anything you wanted.
Mr. Ramakant
Achrekar is the Coach for both Sachin Tendulkar and Vinod Kambli, and they
started career together and they are equally talented. In the early stages of
their life, Kambli promises more talent than Sachin. But, Sachin is very disciplined
and committed to whatever he is doing, and he emerged as a genius and the whole
world liked him.
Mr. Ramakant Achrekar is
famous because of Sachin Tendulkar, and without Sachin he is like an ordinary
coach. The point I wish to make here is, similar to cricket or any other talent
could be nurtured, if both of them are working together. Don’t expect magic in
your investment, sometimes it happen, but most of the time you have to work
hard with your financial advisor or financial planner to get the desired return.
As an individual, you can
excel in whatever you are good at. Spend some quality time with your financial
advisor to make your resources work. Regular interaction with the advisor would
help you to achieve all your financial dreams come true, and then the money
will never be a problem in your life.
Making money and creating
wealth is a child play, provided if you are disciplined and committed, for our
better financial life.
Last but not the least,
money is not everything yet it is very important, which address many of our
problems in life!
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