Sep 06, 2017 3 min read

Want to Become a Mutual Funds Expert? Act Fearful and Don’t Follow

Become an expert investor and earn excellent profits. Know how?
Yes, you heard it correct. We are asking you to act fearful when dealing with mutual fund investments. You must be thinking that all the experts and professionals insist that one should remove the fear of investing in equities, and we are saying the opposite to that. Let’s know in detail that how you can become an expert and earn superlative profits by acting fearful when the entire community is pushing out their money for a call.

You must have heard the famous adage of investing, which goes like, ‘buy low, sell high.’ It is the only mantra which allows you to earn excellent profits from your investments. And from acting fearful we mean, stay away from the market when the whole community is jumping to buy. Most of the investors do not have knowledge about various fundamentals of investment, and they blindly believe in what their investment guru says, or they simply follow up the mass. They follow the majority of the people who are investing their money in any particular scheme, and they also invest in the same not even knowing the benefits and investment details of the scheme. In such cases, the investors end up investing in schemes which do not even match their objectives. So, here comes the second rule which says ‘don’t follow.’ Don’t do what the others are doing. Rather, list down your needs and goals which are to be achieved over a certain period of time and then select where to invest accordingly. By adopting this style of investing, you can earn good profits at the same time with regular practice you will also gain knowledge about various investment fundas.

Why act Fearful?

We all know that equity mutual funds are the most capable to provide multiplied returns, and it has been heard much time that you need to overcome fear if you want to invest in equities and earn more profits. You might be thinking that why we are saying to act fearful. Let’s know in detail:

Always try to buy the investments when the market is moving toward the south because the mass investors sell during that phase. Yes, due to the continuous downward movement of the scheme the mass gets afraid that it may fall more in the future and they tend to sell their investments. At that time, you need to buy more of the units because you will get them at a lower price. Further, during the upside movement of the fund, the mass gets greedy and tend to call more units of the fund with an assumption that the market will go up more and they may earn profits on that. During that time, you can sell the units you’ve purchased during low market and earn good profits on them. So, acting fearful when the other is greedy is a good mantra to earn excellent profits in equity investments.

Why Not Follow?

It’s human nature that we tend to do what other people are doing because we feel when others are doing then it may be safe, good, profitable, etc. But, following this technique in investing may be dangerous to your money. The fund in which the mass is investing may not suit your investment profile, it may not match your investment objectives, and there can be many such reasons. So, we suggest you don’t follow the other people and invest in the scheme which is compatible with your financial objectives and investment profile.

If you can build this habit, then you can become an expert investor in time by gaining more knowledge about various fundamentals of investing. All you need to do is to start from knowing your investment goals and choose the funds to invest accordingly. If you are a beginner, get associated with MySIPonline to start your investments in the best suitable mutual funds right away.