Farsightedness is very important to succeed in the long run. But often people become desperate when money or any financial issue is involved. It is a general human psychology to apply shortcuts and I have seen many investors following the same path and ending up in huge loss. I always used to recommend my clients to go for long term investment plans instead of high return short term plans. Now you will ask why?? The answer is simple: It is just like the story of the rabbit and the tortoise. For example you are planning to invest a certain amount in a certain plan. Now you will first look into the instruments or portfolio where you are investing, the Net Asset Value of the particular product and obviously the past performance, and if its showing a past return of 40% to 45 %, then you will instantly buy it. Many people have done it also and they are facing the consequences now as millions of people have experienced huge capital loss. But the smarter ones are sleeping peacefully as they have invested in long term plans. Even I did few experimenting investments few years back and seen that all my mutual fund investments suffered considerable capital loss but my long term retirement plans are least affected. Everyone wants to become rich, but this can’t be achieved through shortcuts.Beside, I have also seen a trend among the young generations to make quick money. They always avoid long term plans thinking of the tenure of those plans. Its my message to the young generations, to go for pension plans, as, time really passes very quickly. So its time to build your future and if you save today after 15 years you will get benefited. Don’t look into the past performances or how much return a plan gave, but look into the basic structuring of a plan, how it works and how you will get benefited. The present situation is so unpredictable that going for long term plans can really benefit you.
Investment to me is just making right choices and just a matter of patience and patience always pays…
