With a global pandemic looming over our heads today, there is uncertainty all around us. Uncertainty about the longevity of our jobs and business, uncertainty about how the pandemic will progress and how the country and the world will cope. With an unpredictable future ahead, even global economies and markets are plagued due to the unknown. Markets may seem to fall for no apparent reason and can even recover unpredictably, making it quite complex for the common man to analyse and act upon. So, how can we make rational and informed investment decisions in such times?
Just as we are always advised to not self-medicate and seek the professional aid of a doctor when it comes to our physical health, is it not possible to seek the same kind of professional help for our financial health? While professional investing advice may entail a cost, it can be recouped in multiples by the benefits it can bring.
So, why should you prefer professional investment support today?
- Market volatility
From breaching an all-time high in January 2020 to falling more than 30%1 in just 2 months in March 2020, to a slow and steady recovery in the last few weeks despite considerable growth in the pandemic causalities. This severe market volatility can confuse you as to when to buy and sell investments. A professional advisor can help you make sense of this market volatility to drill down to the value proposition of different investments.
- Complexity of investing options
Today we have a wide range of investment products to choose from – from traditional fixed deposits to various debt instruments to a plethora of equity options. Not only do we have to map our goals with our investments but must also analyse the investment types vis-à-vis the state of the economy to be able to gauge its risk-reward potential. An uncertain and unstable economy makes this already complex task more difficult and a professional investment advisor can make this task considerably simpler.
- Potential to earn better
The ultimate goal of all investing is wealth multiplication. Outsourcing your investment decisions to professional advisors has the potential to earn you relatively better returns than you probably could if you were to invest on your own.
- Filtering out the emotions in investing
Have your regretted hastily selling your investments when the markets began to fall just to see them rise considerably a few months later?
This is where professional advice can prove its might. Investing decisions taken based on your emotions, without rationally evaluating the merits involved can often prove to be incorrect. A professional analysis of the market movements is likely to be based on a value analysis as opposed to an emotionally tainted analysis.
Investing is a continuous process and not a one-time exercise. As a novice investor you may make the effort to do a detailed analysis while initially investing your money, but could find it difficult to be consistently updated with the economic happenings in the country and across the globe. It is the job of a professional advisor to be abreast with the state of the economy and markets, putting him in an advantageous position to monitor your portfolio.
So, why leave the critical function of investing your hard-earned money to your own amateur knowledge when you can choose expert and professional judgment? Seek professional advice and free yourself of daily market tracking and confusing market analysis.
1. Calculated based on – BSE Sensex at 42,059 on 16Th January 2020 to 28,288 points on 19 March 2020
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.