Make a list
Many investors keep on investing in options that are in fashion or on recommendations of some experts. Most of these investments will hold their investments for a few years or months when they are doing well. When the going gets tough, most investors make mental calculations and relegate them to the background. That’s why it is extremely important to have a list of all your investments. This will be of immense help to calculate your total investments to your asset allocation. Always look at the performance
You should know how your investments are faring. Use Diwali holidays to find out the returns offered by your mutual fund investments. Always compare the performance with benchmarks and category averages to get a complete picture. You don’t have to panic if any investment is doing badly. The whole point of the exercise is to figure out how your investments are performing. If they are not performing well, you should find out the reason behind it. Always remember that different categories and assets perform differently in different market conditions.
Sell decisions
Many investors try to justify their dud investments with silly reasons. Do you remember how crypto investors suddenly changed their tune when their investments lost value. The usual refrain was that they had only a small exposure. Identity similar self-serving or self-justification employed by you to rationalise your behaviour. If you bought something worthless, try to sell or get rid of it. Cutting losses or getting whatever you can recover is an extremely important strategy.
Are you investing right?
Since you have your investments on paper or document, look at them and find out whether all of them are in line with your investment objectives. Check each investment and see whether it will help you to achieve the goal you have assigned to it. Most people buy things without a proper plan. This exercise will help them to identify the weaknesses of their mental calculation.Secret formula
The biggest secret ingredient in every successful investment is putting together a plan that will help to achieve various financial goals. Once you have a plan, it is extremely important to stick to it. Changing plans based on prevailing conditions will lead you to a slippery slope. It mostly ends up where you started: chasing the magic formula that will make you very rich.
