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.
In analysing businesses, we come across the phrase 'execution is everything', which just means ideas are worth nothing unless implemented well. This is true not just for digital start-ups but everything. Look at any period and see how many businesses have failed in the exact same activity, while others have done very well. Look at the mutual fund industry. There are a handful of fund companies that have succeeded, while most just struggle on and many get sold off. Look at airlines, cars, e-commerce - at any sector actually. In fact, just walk around your neighbourhood and you'll see countless examples of the same kind of phenomenon amongst small shops. Business success is not about 'what', but 'how'. It's the same in investing.
What vs how
All of us feel that the more important thing is what we are doing, and not how we are going to do it. In my experience, the reality is the opposite. Actually, there are no great secrets. The basics of investing success - diversification, asset allocation, cost averaging, focusing on fundamentals, etc. - are available to everyone. Moreover, these are also available easily and at either zero or very low cost. You can have all the greatest ideas in investing, delivered to the device in your pocket at any moment.
And yet, just like in business, and just like in many other aspects of life, it's the execution that matters. Some investors seem to pick up the great ideas and just run with them and succeed but many do not. However, the problem is a little different. You see, investing is not the main business of your life. You cannot spend all your time learning the nitty-gritty of the actual implementation of the best ideas. Unlike business, you cannot even employ someone else who can manage things for you...or can you?
As it turns out, you can actually do that. You can get Value Research to do all the hard work for you! That's precisely where Value Research Premium comes in. That's the simplest way to manage the entire process: the why, the what, and of course the how. Here's what the steps are:
- Articulate your financial goals clearly.
- Get suggestions about a set of investments and a pattern of investments to meet those goals.
- Get a spot-check on whether your existing investments fit the goals, and suggest changes if they do not.
- Enable continuous monitoring of your investments to make sure they stay fit for your goals; proactively suggest changes that might be needed.
If this can be done, then nothing will come in the way of meeting your financial goals. These processes are implemented by features that we have integrated into Value Research Premium. Here's an overview of those which directly work towards meeting your financial goals:
Portfolio Planner: These are custom portfolios that are suggested to you as part of your Premium membership. The algorithm that we have evolved takes into account your goals, your income, your saving capacity and a number of other factors.
Portfolio Analysis: Only a few members are starting their investing from scratch. For most of you, a big question is whether your existing investments fit into your goals? This is often a hard question to answer because there are a lot of implications of switching old investments, not the least of which is taxation. In the Premium system, you can get an evaluation and a suggested fix-list based on our expert teams' inputs.
Analysts' Choice: Often, investors want to choose their own funds for some particular investment purpose. There are over 1,500 available to you and even with the help of our rating system, it's a lot of work to zoom in to the right set. However, that won't be a problem for you because as a Premium member, you will have access to Analysts' Choice. Instead of the 37 official types of funds, we have created eight investor-oriented categories which match precisely with actual financial goals that you have. In each of these, my team of analysts and I have carefully selected a handful of funds that will serve you with the best outcomes.
These are the main capabilities that Premium gives you. However, there's much more that helps you keep track of your investments, returns, diversification, taxation and practically everything else that will help you achieve your financial goals. Check out Value Research Premium for all the details and to activate your membership.
This article was originally published on May 24, 2022, and last updated on August 27, 2022.
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