How an investor falls?
It is not easy to be an investor in the markets. The markets manipulate the mind, constantly. The servant becomes the master. This is the story of how an investor falls.
Take a squint at the image below.
This is an investors’ bilateral fund portfolio. The probity portfolio is well-nigh 10% of the overall portfolio. Bilateral funds are well-nigh 4% of the overall portfolio, or 40% of the probity portfolio.
I imagine this is how it played out.
Now, this investor started in a small way when in 2005/2006. Some friendly neighbourhood counselor strolled in (or the wall RM) and said “Why don’t you start a SIP?”
“Would you moreover like to do tax savings? The bilateral fund tax saving schemes can be a good option. It will moreover requite you a dividend.” I imagine the distributor/RM saying.
“That sounds good.”
It was done. But looks like she wasn’t ready to commit more. It was a start nevertheless.
The small SIP kept going and there wasn’t much that happened in for 15 years.
In 2020, the investor found it difficult not to get swept in the overall mood of the market. It was time to take wholesomeness and invest. This was an opportunity. And it was well guided by an advisor.
The returns from that investment far exceeded the imagination.
“Let’s add more!” This was 2021, yet flipside opportunity phase.
The investor started to squint around. The returns were just too good. The thoroughbred is still fresh on the tongue.
“Hey, but why is my counselor not giving me funds that are orchestration toppers?” (Ye dil mange more!)
The demons of fear and greed are fighting it out in the investor’s mind. It is a mess.
The demons win, the investor decides to take the reins in her own hands. The market seems to be presenting an opportunity. But this time, “I am betting on the toppers.”
The first step towards the fall… unknowingly, yet unsurprisingly.
How difficult it is to protract doing the right thing and not seek unnecessary adventure?
How difficult it is to have patience in the investing journey and towers wealth?
How easy it is to wilt our own enemy?
Fortunately, a tropical friend of the investor pushed her to seek translating again.
Between you and me: How are you fighting your demons? What would you do differently?