Everyone loves to get very high returns on their investments. After all, that is the whole purpose of making investments in the first place. If you are looking to get high returns on your investments in India, this article will provide you with some secrets to do just that.
If you are wondering if now is a good time for you to invest in equity, you might have already lost at least half of the battle. However, don’t be disappointed! We assume that you are a new contender in the game and hence, you are not much aware of the rules. This is why we give you one more chance to remedy this problem. People often wonder about the list of mutual fund investments that can get them the highest returns. The definition of high returns is not necessarily the monetary gains on your investment,but it also involves achieving your goals comfortably and beating inflation.
There is a rule known as the 80:20 rule in the world of investment. According to this rule, people usually tend to waste 80% of their overall energy on things that contribute merely 20% to their financial success. On the flip side, they do not even dedicate 20% of their efforts to achieve 80% financial success. Let us check out where things go wrong!
Time the Market
If you adopt the strategy of market timing as an investor, you are setting yourself up for a massive failure. It will hardly contribute to positive returns in your portfolio. Talking about advisors and investors, at least 80-90% of them focus on time in the market
Selection of Fund or Security
Investors also often wonder about the best investment or fund for them. However, it is not the best question to ask yourself as an investor. An investment which you think is the best for you today might not be the best for you tomorrow. Some research shows that the diversified equity funds of two years are completely different. Therefore, “best” is nothing but a myth in the world of investment. You might be able to find some good funds that offer consistent returns. However, even these consistent returns will not contribute anything over 7% of the total returns. So again, what happens to the rest 93%? Looking for the best investments or funds to invest in is not the best way to move forward. If you are looking for high returns on your investments, the first thing that you need to stop doing is wasting your efforts trying to find the best investment or timing the market.
Portfolio construction is an important step
Asset allocation is the most underrated yet the most crucial part of any investment that can generate high-level returns. However, less than 1% of the total investors consciously manage to do their asset allocation in order
Your behavior plays an essential role that can be a game changer in the end. This is an aspect where the winners might end up doing all the wrong things and losing it all in the end. As a new investor in the equity market, you might think that people who enter the market when it is on the top and exit when it is at the bottom are foolhardy. However, in the words of the investment guru Warren Buffet, “In the equity markets, the rearview mirror is always clearer than the windshield.” Hence, as a life lesson, you must never be over-confident about yourself and your investments. You must be thoroughly prepared not to get stuck in the vicious circle of fear and greed. As many as 80% of the people in the market end up making the same mistakes until they lose everything. This is the reason why there are endless examples of people making money from equity,but you will seldom find people who can build their entire wealth through equity.
The world of investment is challenging and unpredictable. In order to succeed in this cut-throat world and leave with a good share of returns, you must act wisely and follow these secrets to getting high returns on your investments in India.