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Emotions, Ego’s and Equity Markets do not mix!

Submitted by admin on July 17th, 2024

The camaraderie with which someone hums this Kishore Kumar classic that is obviously a travel song, ‘Zindagi Ka Safar Hai Ye Kaisa Safar, Koi Samjha Nahin, Koi Jaana Nahin…’ A song, which we find always raises question marks on life and its facets. Now, if we just substitute ‘Zindagi’ with ‘Equity Markets’, you will find that the level of mystery does not differ and the same could be felt when we deal with Equity Markets as well.

Greed and Fear

Organizations often feel this puzzle primarily due to the risks that are tied to the markets. This uncertainty or volatile as you wish it to be makes an investor bring in his or her emotions when deciding whether or not to invest and in a larger sense, the market is made emotional.

Equity, the beast

The so well understood slogan whether the market is a ‘bull or bear,’ the only ‘beast’ that assists you in beating inflation is Equity. It accumulates wealth for the patient investor in a steady methodical manner and also manages to attain the long-term financial objectives for the said investor also. However, the main issue of this set-up is that many external influences shape this ‘beast’s’ behaviour and production rates.

Invest your funds towards your financial objectives where you also put into consideration the duration for such objectives.

This would let you sleep well, whether it is a bull market or bear market since the right investment products are already chosen that correctly fits the financial goals with a specific duration.

Do not be influenced by fin’mis on social media who talk of make-believe journeys ‘Hera Pheri’ and fancy returns.

The couple concludes that it is impossible to keep on making the quick money without interruption. They are not bound by the law and in every way bear no accountability for their recommendations. Honestly if they knew this is the right ‘mantra’ for hitting the ‘jackpot’ all the time, why engage in sharing it over and over only for their own self not to capitalize on it ?

Understand the Rule in Investing in Equities Basically

Meaning, when you are investing in stocks or Equity based mutual funds you are either directly or indirectly acquiring an ownership stake in a business for long term gains to make money and not betting on it in the short term. to make money.

Businesses and Economies

Equity markets that invest in businesses and economies also fluctuate in cycles because they are affected by different conditions and thus it’s expected.

I have told you that these cycles rise and fall. There are sometimes when it takes a very long time to bounce back from a fall and for this reason, it is often very important for us to be patient with our investments. Balanced and better businesses and economies bounce back much faster than the ‘ugly’ the not so good ones.

Remember always protect the primary source of income and ensure it is always active.

It is prudent to maintain your own profession, job or business whereby it is your core source of income unblemished, safe and opened at all times. The saving amount which you envisage to invest wisely and cautiously preferably after consulting a moral and rightful financial planner for the long term should be invested regularly in the equity markets.

And last but not the least, Keep your E rising & G [Growing] falling Keep your EGO away.

Otherwise be truthful to yourself and just get an actual financial planner to kick start your Investment journey in Equity based Mutual Funds.

You may then probably realise that ‘Zindagi’ and ‘Equity markets’ are not that interesting and one can glide through them very easily.