We’ve written many times in the past how investor earns much lesser than what the investment provides by jumping the ship in bad times, not staying the course, chasing performance, frequently churning the portfolio, redeeming during corrections, stopping SIPs, chasing current fad or fashion ignoring long term consistency across market cycles, timing the market, not understanding the power of time and compounding, inability to develop long term perspective and so on. The list of behavioural errors investors make is indeed very long.
In THIS piece, one of the well known financial advisor and popular blogger, Joshua Brown says:
“If a financial advisor could just accomplish one thing for clients – help them capture more of the returns that their own investments offer, then he or she has done something extremely worthy and valuable.
Minimizing these detractors from long-term returns is yeoman’s work and a mission that serious financial advisors are happy to undertake.”
He also points out that the index S&P 500 has provided 10.4% annualised return over last 30 years. During the same period, an average investor has earned only 3.7%.
This massive under performance is due to negative behavioural traits highlighted in the opening paragraph of this piece.
All our efforts are to ensure that you earn 100% of returns which your investment offers without any underperformance due to wrong behaviour.
I’ve taken it as a professional mission to make our clients earn 100% of investment returns.
It pains a lot, every time, when I see any one of you failing.
Help us to help yourself.