There are people who when invest do so systematically be it mutual funds or stocks. In a long term, the money grows manifolds thanks to power of compounding giving them a cushion of a comfortable corpus at their disposal. Being systematic is not tough at all. Just invest a fixed amount every month and forget about it. Don’t get emotional or have behavioural gaps when volatility hits the market. Since March 2020 till the Russia Ukraine war broke out in Feb 2022, everyone who was invested in the market made money, some even more than 100%. But as the war began, inflation crept into the global economy bringing the nifty down by almost 10% from its peak. But people who understand this simple concept, are not jittery and refuse to give up. In March 2022, 105 million retail investors invested close to 19,500 Crore in equity mutual funds!!!
But there are investors who make emotional driven investment decisions by trying to time the market or buying based on recent performance. None of this is the right thing to do. They end up buying high and selling at low levels or at small profit without waiting for the markets to bounce back. When you don’t follow a systematic strategy, the behavioural gap continues to increase and ultimately cost you dearly. The FOMO syndrome doesn’t work well with investing. Its never too late to make a fresh financial start with a simple systematic approach.
