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What are the differences in the attitudes between seasoned, often HNI investors and novice Investors?

Novel investors are frequently asking these questions:

  • “I’m down 10%. Should I get out now?”
  • “Is it a good time to invest, considering the US is heading for a recession?”
  • “The RBI has hiked interest rates. That can’t be good for the market.”
  • “Retail inflation was at an 8-year high of 7.79% in April.”
  • “I wouldn’t invest with the ongoing Russia-Ukraine conflict.”

Whereas the concerns of experienced investors are more along these lines:

  • “I’ve been maxing out my Sec 80C and have sufficient cover which helps availing deduction under 80D every year since I was 25.”
  • “Am I on track to my 10 crore retirement corpus in 15 years?”
  • “Just got a new job. Thinking of where to invest my joining bonus and the 25% hike.”
  • “I only check my portfolio every six months or so to make sure it’s set up correctly”

While pondering on your investments, is your thought process similar to Rocky the speculator, or do you have the laser focus of Reena the investor?

If you’re a long-term investor, you don’t need to waste time trying to figure out the market’s move, or why it went up or down today.

It’s a blissful relief.

The price of an asset (mutual fund, real estate property, etc) only matters twice in your lifetime:

1, The day you buy it,

2, And the day you sell it.

Everything else, my friends, is noise.

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