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Be a Passive Investor

Be a Passive Investor… But Active in your Job / Business


I have found that most people busy in managing their investments like a reading newspaper /watching TV shows / asking for advises which Stocks/MF/Bonds/Commodities/Insurance/Real Estate to buy / hold /sell and ends up with investing / wasting their precious time and also active nature leads to higher transaction cost or poor returns or some time capital loss.


Yesterday, I was reading one of my MF investment statements and found that NAV increased three times in just 6 years… I had invested in Reliance Growth Fund during Sept to Dec. 2008 @ average NAV Rs. 200 and after six years became Rs. 705… I have earned 23% CAGR return without investing time in managing my investment or Having SIP in HDFC Tax Saver fund since last 9 years produced 20%+ returns.


I strongly advise that as an Investor, you need to hire a qualified Financial Planner (CFP practitioner) who can draw the road map of your Life [Prepare comprehensive family financial plan (Inflation Adjusted Corpus required for various goals) and suggest suitable asset allocation strategies & products to achieve your Goals] by paying fix Fee every year.. you are assured of getting unbiased high quality advice and regular reviews of investments… So, you as an investor save min. 30 minutes per day means 200 hrs time every years leads to additional one month man days…if your income approx. Rs. 1 lakh per month…You will save min Rs. 1,00,000 pa and also protect yourself from capital loss. Eg. Today I met one of my friends and during the discussion he shared that lost Rs. 10,000/- in DLF intraday /F&O trading in one day… above loss happens because of speculation when you are passive investor you will never like to do above activities.


You must be active in your job / business so you can achieve a higher level of expertise and add value to your customers, which surely leads to higher income instead of invest / waste your time in managing investments. eg. Automate your investments… since last 10 years… I do only SIPs( Equity / Debt MF or PPF / Bank RDs etc.) and review fund performance once in six months or years… so completely focused on my activities which leads more respect and satisfaction and also income.


Invest your precious time in your professional activities not in managing investments…leave your investments to professionals.

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