Start your investment journey this Ganpati festival
Ganesh ji’s big brain suggests that its best to start investing when the markets are low.
When it comes to anything auspicious, many of us say “Shree Ganesh karte hai.” When we buy a new house, we start with Ganeshji; when kids get married, we start with Ganesh Vandana. But is buying a home just an event? Is getting our kids married is all about a two-day wedding. Well, we start thinking of our house much earlier in our life, maybe as soon as we start earning. We start planning for kid’s bright future much earlier. And all this preparation is all about money management. In the end, the dream has a price tag.
How about starting preparation of those auspicious days during the most auspicious days of the year - Ganesh Chaturthi has just gone and India is celebrating the week-long festival.
Now Ganesh ji is also offering us blessing as far as investments are concerned. Equity markets are low and probably you will not get a better time than this to start investing in equity mutual funds.
Most investors think of starting investing only when the past returns look very good. They think that the returns will go up further. But markets, being cyclical in nature, always come down after highs and go up after lows. Today we are in lower markets. You will get things cheaper. Ganesh ji’s big brain suggests that its best to start investing when the markets are low.
In my view, small cap funds and mid cap funds which have got the most beatings are the ones you should be investing. But do remember that your investment horizon should be your long-term financial goals and not just one or two years. One more thing about Ganesh ji is that he has small eyes. That simply suggest that he sees very little of the outside world and concentrates on his world.
Well, apply this in your investment life - what is your world? What matters to you? Are you interested in knowing what is going to happen in markets next week or month or year; what decision will the finance finister take; what will happen to the trade war between China and USA... I mean, do these things matter in the long run? What matters is your world - your life, your retirement, your kids, your dreams. So let's focus and take smart decisions.
(Ashish Modani is founder of SLA Financial Solutions)