Investing is a science as well as an art. It is the science of what not to buy and an art of what to buy. Therefore it is more important to know what you don’t know. Why do most investor’s are not able to make money? Consider this fact. The most successful mutual fund manager ever, Peter Lynch generated 29% compounded returns from Fidelity Maggelan Fund. However, on an average, investors made only 7% from the same fund during the same period. It happened because of investors don’t stay invested in the fund for a long tenure.
Why is this the case most often than not? Investment returns and investor returns tend to be different. Investing is beyond numbers or choosing the next best multibagger stock or mutual fund scheme; it is more about how investors behave during various phases of the market.
Investing success is achieved by following emotionally difficult path. – Parag Parikh
Eid Wishes ! Have a great week ahead.
Happy Investing !!