Investing is like “cake in the oven”, patience is a must!

Investing is like cake in the oven, patience is a must

Exercise regularly, get enough sleep and eat five servings of fruits and vegetables a day: that’s pretty much the basis of a healthy life. The same goes for successful investments: patience, discipline, and regularity are key.

Time is one of the investor’s levers of profit, and patience is one of his cardinal virtues. If you invest 1,000 rupees today in a diversified way, your potential return in 20 years will be completely different from what you would obtain if you invest 10 years later.

Or if you start investing 5000 rupees every month in a SIP, the future value of your investment will definitely be larger than the amount you will get if you start investing a few years later.

Investing is like “cake in the oven”, in which, being patient is a must to get good results/returns.

Keep in mind that you have to be patient and give the stock market as much time as possible to “work” with your investments. However, there is a second way to turn the time factor to your advantage: start investing as early as possible. If, on the one hand, you have to be patient and stay invested, on the other, you have to know how to be impatient and get started as soon as possible.

In addition to patience and regularity, discipline is very important. Although stock markets show an upward trend over the long term, they can experience strong ups and downs in the short term.It is therefore tempting to panic and sell everything when the situation deteriorates for a while. Or lapsing into euphoria and buying too much when things are going well.

Periodic investment by means of a standing order – for example, 500 rupees per month – nullifies these emotions to a certain extent. This way, it will be harder for you to give in to the temptation to give up everything and you will be able to more easily keep the long-term horizon in mind. So, if you are looking for a wealth management consultant in Delhi-NCR, contact us today to start investing now.

Many investors withdrew their investments from the stock markets following the crash of March 2020. This reaction is not new; with each crash, investors find it difficult to stay invested in the stock markets.

Being patient is a quality that takes years of practice. Overconfidence can cause most investors to think they are perfectly patient, which is by definition impossible.

Everyone seems to stress the importance of patience and a long-term vision, but without any clarification, these notions may well be meaningless. It is essential that the investment horizon is defined in a very concrete way and that the term “long-term period” corresponds to a specific number of years.

According to a famous quote attributed to Warren Buffet, “the stock market is a tool for transferring money from the impatient to the patient.” And there is no doubt that this statement is correct. So, rather than giving your savings to someone else just because of little impatience, it is best to be consistent towards your goals.

For more information on investments, please contact our experts today at +91-011-48564444, +91-7834834444 or email us at info@rkfs.org

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