There are three planes on the tarmac at Mumbai Airport.One is Jet Airways, one is Air Vistara and the third one is Indigo.
Passengers have been given the opportunity to choose whichever airline they wish to travel by.There is utter confusion because of this announcement.
Passengers cannot make up their mind which airline to choose.
Air Vistara is a new airline and has an association with Singapore Airlines, Indigo is punctual and proven, Jet Airways is luxurious and with many years of experience.
In this confusion and indecision, all three airlines leave without the passengers.
This is exactly what is happening with people who keep thinking about investing and keep procrastinating their decision of investing.
As a result like the airlines the economy and opportunities too move on. Opportunities don’t wait for us.
In the case of the passengers, whatever choice they would have made, it would have got them to Delhi in more or less the same time and with more or less similar experience.
Perhaps Air Vistara would have experienced turbulence making passengers uncomfortable.
Perhaps Indigo would have experienced air traffic congestion at Delhi and would have got delayed.
Perhaps Jet Airways would have had an AC problem but would have got to Delhi on time and without turbulence.
But was it possible for us to predict in advance about the turbulence, the air traffic conditions and the AC problem.
Certainly not. It is just not possible to predict external conditions.
But by procrastinating they continue to remain stranded at Mumbai Airport.
Likewise investors in their confusion about which fund to invest (Birla Frontline, HDFC Top 200, ICICI Pru Top 100 etc) lose the opportunity to invest in the economy on time.
In this way they incur an opportunity cost due to delay due to their confusion.
The lesson clearly for investors is to stop procrastinating and contact a good quality mutual fund advisor and follow his instructions without delay.
There is no way in hell to be able to forecast as to which of the top funds would lead the pack in the future.
Past performance certainly will not help in predicting the future.
What is prudent then?
Simply start your SIP as early as possible. Contact your MF advisor right now. Starting is crucial. Where to invest is secondary.
Is anybody listening?