Arthgyaan

Supporting everyone's personal finance journey

Investor behaviour: control what is possible

While investing, focus on those important things that you can control.

Investor behaviour: control what is possible


Posted on 06 Mar 2021
Author: Sayan Sircar
2 mins read
📢Join 2800+ readers on WhatsApp and get new post notifications!

While investing, focus on those important things that you can control.

It is interesting to observe investor behaviour in the field of personal finance. People generally are focused on more minor, mainly operational aspects of investing. They give less attention to strategic actions that have more impact on achieving their investment goals.

Here is the view:

Control what is possible

The diagram essentially means that there are important things and those we can control:

Contrast this with things that are easy to worry about but may not be as important:

  • Having unrealistic return expectations leading to either saving too little or taking unnecessary risks: handle this via asset allocation and review and choose the right assets for a goal
  • Timing the market or waiting for the right time to enter / exit: stick to your plan and rebalance in case asset weights deviate from the target
  • Looking for the best fund or stocks: invest instead in diversified funds that have low costs like this
  • Investing solely to save tax: evaluate if the investment is suitable for your goals
  • and many more

Related:
What do you need to make money when the stock market suddenly drops like 4th June 2024

What's next? You can join the Arthgyaan WhatsApp community

You can stay updated on our latest content and learn about our webinars. Our community is fully private so that no one, other than the admin, can see your name or number. Also, we will not spam you.

To understand how this article can help you:

If you have a comment or question about this article

The following button will open a form with the link of this page populated for context:

If you liked this article, please leave us a rating

The following button will take you to Trustpilot:

Discover an article from the archives

Previous and next articles:

<p>Save money monthly for significant known expenses via a sinking fund.</p>
Budgeting
Budget 101: How to save for periodic expenses: the sinking fund

Save money monthly for significant known expenses via a sinking fund.

Published: 8 March 2021

4 MIN READ


Latest articles:

<p>This article discusses the NFO of the Tata Nifty India Tourism Index Fund which is the first fund tracking the Nifty Tourism Index.</p>
Review Mutual Funds
Tata Nifty India Tourism Index Fund NFO: should you invest?

This article discusses the NFO of the Tata Nifty India Tourism Index Fund which is the first fund tracking the Nifty Tourism Index.

Published: 10 July 2024

6 MIN READ


<p>This article introduces the concept of the information ratio, which mutual funds may need to declare daily for their funds.</p>
News Mutual Funds
Why SEBI wants mutual fund investors to learn about information ratio?

This article introduces the concept of the information ratio, which mutual funds may need to declare daily for their funds.

Published: 9 July 2024

4 MIN READ


Topics you will like:

Asset Allocation (21) Basics (8) Behaviour (14) Budgeting (12) Calculator (25) Case Study (6) Children (19) Choosing Investments (38) FAQ (13) FIRE (13) Fixed Deposit (9) Gold (22) Health Insurance (6) House Purchase (34) Insurance (17) International Investing (13) Life Stages (2) Loans (21) Market Data (10) Market Movements (20) Mutual Funds (58) NPS (9) NRI (19) News (23) Pension (8) Portfolio Construction (54) Portfolio Review (27) Reader Questions (8) Real Estate (7) Research (5) Retirement (38) Review (21) Risk (7) Safe Withdrawal Rate (5) Set Goals (28) Step by step (15) Tax (63)

Next steps:

1. Email me with any questions.

2. Use our goal-based investing template to prepare a financial plan for yourself.

Don't forget to share this article on WhatsApp or Twitter or post this to Facebook.

Discuss this post with us via Facebook or get regular bite-sized updates on Twitter.

More posts...

Disclaimer: Content on this site is for educational purpose only and is not financial advice. Nothing on this site should be construed as an offer or recommendation to buy/sell any financial product or service. Please consult a registered investment advisor before making any investments.

This post titled Investor behaviour: control what is possible first appeared on 06 Mar 2021 at https://arthgyaan.com


We are currently at 431 posts and growing fast. Search this site:
Copyright © 2021-2024 Arthgyaan.com. All rights reserved.