There are two types of investors. One who just refers the calls and others are those who actually implement those calls. I will explain it with a short story.
Ram & Shahil were quarreling in class. Both didn’t even want to listen to each other. To solve this, the teacher asked Ram to stand on one side of the desk & Shahil on the other side. The teacher placed a ball in the centre of the desk & asked, “What’s the colour of the ball?” Ram said white & Shahil said black. Both answers were different & they again started arguing. The teacher then asked them to exchange their places & asked, “Now, what’s the colour of the ball?” This time, Ram said black & Shaihil said white. They were surprised that both were right. The teacher explained, “This ball has 2 colours. It looks white from one side & black from the other. Both answers are correct. The only difference is how you view it.”
It is not necessary that one whose opinion is different from yours is wrong. It’s just a different point of view. Instead of arguing, we should try to understand the other point of view. A financial advisor allocates investment portfolios basis the goal horizons & risk appetite of investors. Some may be highly skewed towards equity while some may be skewed towards fixed income.
Some may be skewed towards large-cap funds while some may be towards small & Midcap funds. Each allocation is backed by a financial plan & may end with different return paths. But many a time, investors end up comparing returns with others & feel let down. One must therefore have the knowledge to understand this difference. The focus should be on meeting goals & not beating returns. Hence, let’s be the player who runs for goals & not the referee who looks for faults.
So it is important to stay with your financial plan which is drafted by your Financial Planner and Enjoy the Journey of Wealth Creation. do not look for others Portfolio Happy Investing!