As we. come close to Gandhi Jayanti (152nd birth anniversary) This 2nd October, it would be nice to be reminded of the virtue of patience as revealed by the Father of the Nation. The patience that led him to embark on a 390 km or 24-day long hike from Ahmedabad’s Sabarmati Ashram to Dandi, a small village near Navsari, to end the salt tax, which was later known as the Salt March or Dandi March. known as. This later gave impetus to the Civil Disobedience Movement, which eventually culminated in India’s independence.
Thus, to reach the ultimate goal of independence, Gandhiji had to wait patiently and patiently through many struggles to lead India towards independence. A similar rule applies when chalking out one’s financial plan. Let’s explore five key ways how being patient can lead to financial freedom:
Using Patience as a Mindset in the Equity Markets
Patience is the realization that achieving success or wealth requires patience and perseverance. In the bullish phase that we are experiencing, it is easy to lose sight, leading many to enter the equity markets to make quick profits. Focusing on the short term can hinder progress towards their long-term investment objectives, limiting investment potential. Investment portfolio.
live long
Investors who are patient and calm even during the ups and downs of the market are truly on their way to financial freedom. Whereas forecasting and macro analysis can tell you the future value of an investment with a certain amount of accuracy. However, it is certainly not easy to know how long it will take for your investment to turn a profit. This is where patience plays an important role in portfolio management. Therefore, investors should invest for the long term and patiently wait for their investment to grow to a fair value.
Avoid the noise of the market
There will be instances where investors have exited or redeemed investments as a knee-jerk reaction to negative news, later regretting these actions. Instead, investors should avoid being influenced by market conditions and exercise patience and commit to their investments through troughs and peaks. Over time, it becomes easier to get out of market volatility.
stick to a good financial plan
A well thought out investment plan should not be abandoned during this difficult time. The pandemic was a difficult realization for investors who did not have a sound financial plan and lost a major part of their corpus during the equity market crash. Investing in just one asset class can affect one’s financial goals. Therefore, it becomes necessary to create an asset allocation strategy by diversifying across asset classes such as equity, debt and gold to generate risk-adjusted returns. Investors should create and stick to a financial plan that best reflects their goals and risk-return requirements.
Looking Beyond Rankings and Star Ratings
Patience should be exercised not only while investing but also looking for good investment opportunities following the financial plan.
In the long term, exercising patience and sticking with our investment philosophy will potentially pay off and enable investors to achieve their long-term goals.
As Mahatma Gandhi said, “If patience is worth anything, it must endure till the end of time. And a living faith will last even in the midst of the darkest storm.”
(The author is MD & CEO, Kunatum Mutual Fund.)