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D.Muthukrishnan (Muthu), Certified Financial Planner- Personal Financial Advisor

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Nothing is the best thing

Posted by Muthu on June 16, 2018

In personal finance and investing, we’ve to do few right things and avoid many wrong things. Once we do few right things, doing nothing is rest of the course. We never get tired of repeating this. The key value we bring into the relationship is ensuring that you do nothing after the course is set.

There are many approaches to investing and personal finance. We follow what we’ve internalised through our learning, experience and inspiration. We can only advice what we follow. That’s why we always focus on buy and hold.

Our strategy has evolved based on our faith in the future of our country. Over next two decades, there is a strong possibility of India moving into middle income from low income. Many sectors and companies would benefit from this growth. For stock pickers, they need to find few quality companies where they can sit on their ass for one to two decades.

For you all, mutual fund investors, need to stick to chosen equity funds and keep investing regularly in a systematic way. Need to tolerate periodic under performance of funds. Even legends underperform close to one third of time. So there is no way the fund managers can avoid this. Though choosing good funds are important; it is still a hygiene factor. What really matters is your discipline in staying the course.

We neither believe in short term wealth nor have knowledge of creating it. You’ve self selected to be our clients since you see merit in the philosophy and the strategy we follow. In our view, it takes not less than 2 decades of high saving and prudent investing to gain financial independence and create sizeable wealth.

Doing nothing was easy last year as markets gave excellent returns. It is a year like current one which shakes the faith. Markets have always behaved like this and future would be no different from the past. Need to accept this bumpy ride with a conviction that we are moving towards a good destination.

Though you heard from me many times, it is difficult to do nothing. Our mind always sees action as a sign of progress. This is indeed true for various aspects of life but not to investing, especially for the strategy we’ve chosen to follow.

So continue to do nothing and stay the course.

2 Responses to “Nothing is the best thing”

  1. r s babji said

    When it comes to money matters,your guidance and suggestions are priceless.You are my mentor.

  2. […] Doing nothing is the best thing (Muthu) […]

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