Generally, lethargy is considered as bad. Be active, be decisive, this is what we are advised.
But lethargy can be very helpful for investment success. In fact, being overactive is counterproductive. We will discuss that later but first about lethargy.
Taking investment decisions always looks difficult and challenging. Where should I invest? Is this a good time to invest or should I wait?
Which is a good fund or stock to invest in? Should I believe my advisor or double check with my informed friend?
So, it becomes quite a stressful situation and to avoid being in such a predicament, many investors simply prefer to keep the money in bank accounts or fixed deposits where returns don’t even cover the inflation.
Yes, making investment decisions for your own money is always nerve wracking. But you can devise a system of bypassing this stress and in turn benefitting through it. You must have heard of the benefits of Systematic Investment Plan (SIP). Yes, you get the advantage of rupee cost averaging, yes, it helps in compulsory saving and yes, your small savings turn into a big portfolio in the long term. But more than that, you relieve yourself the pain of taking investment decisions again and again. You commit once and then investments continue regularly. SIP saves you making unnecessary calculations of market timing, where to invest, which is the right fund etc. Also, once you start your SIPs, generally you don’t stop because again it takes some effort. So, in a way, you have converted your inaction as your investment friend and this is great for your long-term wealth creation.
Manoj Pandey
CFP
