The Mutual Fund Investment: Impatience VS Patience

Great opportunities don’t appear too often in the investment market but investors need to realize that to grab those opportunities they need to analyse its impact on their financial goals before making any impatient move towards their investment. 

We have all seen this happen, again and again.

When a plane lands, the passengers start getting fidgety. They stand up even while the air craft is in motion.

The same picture is seen in trains when people line up in the gangway much before the train has arrived at the station.

Imagine if there was a force which ejected these people out of the aircraft and train the moment they got up from their seats.

What would have happened? Perhaps they would not even live to tell their tale.

Unfortunately in financial investments because there is no risk of physical injury, investors not only get up before time but also get out before time.

Impatience is a trait that is common to many investors; most investors lean towards short-term gain, a habit that impedes their chances of achieving their long-term investment objective and constricts the potential of their portfolio.

The following highlights how to curb impatience to earn better returns:

  • The young investors tend to be more impatient towards their funds than experienced investors; on an average, they probably hold on to their investment for over a year and a half. This short-sightedness tends to restrict their scope of reaping benefits and minimising potential losses; only a disciplined and patient approach towards investment can enable investors to minimise loses and to earn favourable earnings.
  • Being too emotionally tied to money is one of the major reasons why investors act rashly in a dropping market. They tend to ignore the aspect of timing the market and make wrong investment decisions that make them lose their money. Investors should practice being resolute during market changes to avoid emotional market forecasting and control the growing impatience over investments in funds.
  • One way to curb impatience is to invest in diversified funds to combat the highs and lows without giving into the temptation of trying and timing the market.

What is needed to make the most of one’s investment is ‘patience’.

  1. While it makes sense for the passengers to have patience and wait for the right time to alight, it is even more rewarding for an investor.
  2. Till such time investors continue to show impatience, funds and stocks, although will give exemplary returns, investors would remain deprived of enjoying the same.

Happy Investing!!!

Imperial Finsol, a Firm committed for providing a personalized solution for your Wealth Management needs. We help you to make smart investment choices with your money to get maximize returns. Knowledge of the financial markets and dedicated Client service team, are the pillars of our success. We now catering to 2000 plus clients. We are a preferred choice of Clients when it comes to Wealth Management.

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