Friday, 11 October 2024

Investing in the highest returns giving assets won't make you wealthy, want to know why?

People often come to me and ask:

 

·        Which is the best mutual fund scheme where I can get the highest returns?

·        What are the investment options where I can get maximum returns in the shortest period?

 

Well, chasing returns is a fund manager’s job,

 

The job of a financial expert is

 

Not to chase the highest returns, but

 

1. To make you aware of your future financial needs

2. To help you to make right financial decisions

3. To guide you not to panic when the market falls steeply

4. To guide you not to be over-excited when the market rises sharply

5. Guide you not to make decisions on emotions but sound logic especially when the market behaves another way

6. To make you focus on your financial goals, not some quick bucks

7. Motivate you to save more and invest smartly

8. To caution you not to try shortcuts for making quick money

9. To Beware you of scams and fraud schemes that offer huge returns

10. To make you aware of various risks and protect you from them

11. To make you aware of your expenses and how to manage them

12. To make you aware of the benefits of compounding, continuity, and discipline in the investments.

13. To guide you about good and bad loans and how to avoid/come out of a debt trap

14. To guide you regarding Emergency Funds, Risk Management, and estate Planning

15. To suggest you those investment options that are suitable based on your age, risk profile, investment horizon and financial goals.

16. To do proper asset allocation

17. To guide your investment behaviour

18. And finally, to help you reach your financial goals smoothly

 

In Mahabharat, the best Archer Arjun needed the advise of Lord Krishna and Lord Ram asked for advise from Hanuman, Jamvanta and Vibhishana. Similarly, a Financial Advisor is required to achieve financial goals in life.


Remember: To become wealthy is more of a behavioural matter than just getting the highest returns, and a financial expert tries to Manage that....

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