The founder and CEO of Shaddi.com, Anupam Mittal was a guest recently on Sharan Hedge’s podcast “Finance With Sharan.” Sharan Hedge, a well-known personal finance expert and the founder of The 1% Club discussed multiple topics with Anupam and mutual funds being one of them.
Anupam Mittal’s Views On Mutual Funds
In the podcast Sharan and Anupam talked about the business ecosystem, showcasing their understanding and personal points of view. During their conversation on Indian Real Estate Investment, Sharan shared facts about Mutual Funds. He revealed less than 2% of individuals are able to hold investments in Mutual Funds for 20 years. This sparked an amazing exchange of opinions between them.
Sharan and Anupam both agreed on the importance of understanding investor psychology and mindset when dealing with Mutual Funds.
Sharan emphasized that while the freedom and flexibility offered by Mutual Funds and SIPs are good, the challenge lies not in selecting the right mutual fund and investment options but in managing the impulsive decisions driven by investor psychology and making rash decisions. Anupam pointed out that most people make decisions regarding real estate, jewelry, or gold out of fear and greed.
Anupam further says that not everyone falls into the category of those heavily invested in jewelry, real estate, or gold. However, he cautioned that for the average person who typically makes such investments, relying solely on them may not be the way of securing their future.
This conversation tells us the important role of psychology in investment decisions. Â individuals should take control of their own thinking while remaining aware of their surroundings and informed about the investment world. The aim should be on long-term investment goals rather than quick profits. Judging the complexities of the business ecosystem can be challenging.
Many people these days are choosing SIPs to invest in Mutual Funds. However, some aren’t making money because they pull their money out too soon. SIPs work best when you invest for the long term. Pulling out early can lead to missed opportunities and lower returns. They are not able to understand the importance of staying patient and sticking to your investment plan. Their mindset and psychology regarding making money quickly and depending on others’ decisions also play an important part in them pulling money out of the investment.
Read More: Anupam Mittal Reveals His Investment Portfolio, Claims He Doesn’t Invests in Public Market
