SRIKAVI MONEY is the musings by Srikanth Matrubai, Author of Amazon Best Selling Book DONT RETIRE RICH.
Request you to note that this blog is purely for educational purposes and in no way recommends any investments.
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We do not take any responsibility whatsoever as the blog content may be changed from time to time and is generic in nature.
Sunday, 1 August 2021
UNDERSTANDING FRIENDS AND ENEMIES OF INVESTMENT ON FRIENDSHIP DAY
HAPPY FRIENDSHIP DAY
Friendship Day is the day we come to know our REAL WEALTH.
I have always considered
Good Health, Loving Family, and Geniune Friends as REAL WEALTH.
Today, Friendship Day is the day when one of these REAL WEALTH worth is highlighted.
Of course, the friend's worth is seen every single day but this day it's highlighted in a new light and brings an amazing feeling giving a kind of dopamine to us.
It goes without saying that a TRUE FRIEND is never jealous of your growth and in fact, helps you in getting to the superhighway of growth with his unbiased inputs.
When it comes to investing, we need to know our friends and enemies and I have highlighted some of them here so that you can know whom to stay away from and whom to get closer to.
YOUR REAL FRIENDS :
1. Volatilityis a BEST friend of a SIP and STP
2. In Stock Markets, Widespread FEAR is your BEST friend. Fear serves up bargain rates for you to accumulate blue-chips and multi-baggers
3. Time is your BIGGEST friend in Investments. Remain a friend always with Time and your friend TIME rewards with huge compounded returns.
Your friend TIME keeps giving you opportunities to buy underpriced stocks and exit Over-Valued Ones. 80% RETURN HAPPENS IN 20% OF TIME SO BALANCE 80% OF TIME WE SHOULD BE PATIENT AND SIT IDLE.
It's TIME in the market that leads to COMPOUNDING and helps you in achieving the 8th Wonder of the World.
A friend who helps you in moving to high rises during floods and switches on AC when its hot!
You may feel that Diversification friend is not giving you returns but actually, he is protecting you from downsides.
5. PROPER PLANNING
He is a friend who makes sure that you always have a MAP and never get lost.
This friend helps you in achieving all your goals at the right time and with the right amount.
He is in a sense your BEST FRIEND when it comes to investment.
6. ASSET ALLOCATION
He too is like Diversification making sure you have ALL types of assets in the right percentage.
A boring friend and most ignored one by almost everyone but being friendly with Budget helps you in not only saving.
The problem with Budget is that this friend makes you feel that you should be a MISER (Kanjoos) but in the end, it's always in YOUR BENEFIT.
1. Unwarranted fear over volatility
2. Unsolicited advice from So-called friendly FREE apps
Innumerable times in our blog, FB posts, tweets we have highlighted how Inflation is your INVISIBLE enemy
4. Just as Fear is an enemy even EUPHORIA is your enemy.
Euphoria actually comes in form of a friend and shows you all ROSY pictures making you commit a mistake similar to gambling.
Yes...Trading is a Wolf in Sheep's clothing. This TRADING friend is actually working for your BROKER and not for you.
Yes...another hidden enemy. Does not appear when you earning but when you have EARNED suddenly and claim his share and quite a substantial one at that.
He does give some concessions and a prudent investor with the help of an Expert make sure to get maximum from those concessions
I have not put MONEY in either the Friend or Enemy list because Money can be your Best friend or your worst Enemy as the relationship with money depends completely on your HABITS.
Locking money in Locker or sub-optimal return generating assets (FDs, Gold, etc) will make MONEY angry
Invest your Money in above-average return generating assets (Equities, Real Estate, AIF, etc) will make MONEY happy.
If you have POSITIVE and Wealthy Habits, Money will become your Best friend and help you get WEALTHY.
Never buy any financial product (mutual fund/insurance/p2p, etc) from a friend just to oblige the relationship. It could result in suboptimal returns.
This is more so when your friend who had been doing something else suddenly behaves like a Financial Guru just because they are now Ag
Let friends be friends and do not let your friend become a product peddler and result in spoiling the relationship.
Stick to the Old Saying "Friendship from a business is always better than business from a friendship"
When it comes to WEALTH CREATION, your friend May have your best interest at heart but only an Expert with enough experience and capability can correctly assess your risk appetite and your investment objectives and help you in choosing the right fund to invest in.
Moreover, due to experience and capability, the Expert will be able to help you tide over EMOTIONAL issues when it comes to investing.
NEVER compare your portfolio with your friend.
Each individual, each family has a different risk profile, different time horizons, and definitely different goals, and hence the portfolio and the asset class will have to be different.
FOCUS ON YOUR WEALTH CREATION JOURNEY.
If you do want to help your friend and I am sure you indeed are...then help your friend become WEALTHY by making them invest in Equities.
This will also help you upgrade yourself from being just a friend and now become a GREAT FRIEND
All the best to your friendship (friend-sip)
All the best, Regards, Srikanth Matrubai
MUTUAL FUND DISTRIBUTOR
REBALANCE VOLATILITY CERTIFIED COACH
Srikanth Matrubai, Author of the Amazon Best Seller DON'T RETIRE RICH
You are strongly encouraged to consult your financial planner before making any decision regarding this investment.
The views expressed here are the author's personal views and should not be interpreted as a recommendation to invest/avoid.
Author of the Amazon Best Seller DON'T RETIRE RICH
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