New vs old, exciting vs dull

Most investors, especially those who are investing in equity-based funds, have a 'novelty-seeking' nature. On top of that, they have a deeply optimistic nature. In fact, it's optimism about the future that defines the investing mindset more than anything else. For some, the optimism becomes irrational and leans into a gambling mindset but controlling that is part of the game. However, this novelty-seeking and optimistic instinct makes us think that getting ideas about identifying new investments is the most important part of investing, while managing them and understanding them is a side issue.

This article was originally published on May 24, 2022, and last updated on August 27, 2022.