IN EVERY CRISIS AND THREAT THERE IS AN OPPORTUNITY TOO-SPECIAL BLOG FOR SPECIAL CRISIS CREATED BY A VIRUS
I plan to address specific issues as regards the present situation we are all facing , wondering about
Money matters = What to do about investments which have suffered heavy losses.
As the situation is extra ordinary the losses suffered are also heavy in most cases. I will classify the losses in two categories
l Losses suffered when investments were made in selected equity directly by knowledgeable investors as per their own strategy and risk taking ability and not merely on some random recommendations by third parties. Locus of control with the investor.
l Losses suffered by investing in mutual funds where the investor has no control over his money saved but may have selected these mutual funds based on their past performance or on third party recommendations.
Both the cases call for some reflective thinking and actions. Let me take the first case first. Here is the case of minority but prudent and smart investors. You have nothing to worry but need to understand and appreciate that in such sharp falls stop losses do not work. You need to be patient and wait unless you need the money for immediate use. Most people in this class are long term investors who have the ability to hold on to their investments and wait.
However those more adventurous may like to take advantage of high volatility and sell and buy a small percentage of their holdings to merely rotate within the long term gains limit and add some small gains to their net worth without paying more in taxes and yet spending some interesting time while at home.. You will need to be disciplined to take calculated risk and have mental detachment to accept such small gains or losses without losing any sleep.
If you have some funds to invest which you do not require for at least a year invest them in the companies whose market value has dropped the least as a percentage.
If you need some help or guidance you are welcome to discuss what will best suit your life and financial situation.
Losses due to investments in mutual funds
If you are one among the majority who have not yet invested in self learning and invested in mutual funds as an easy way out, this will be more useful and timely for you.
First and foremost is not to lose your cool and sell in a hurry and take losses. This is the time for you to understand first that there are better and easier ways to invest your savings than mutual funds. Advantages are you have control over your investments, you take less time to monitor and reduce risk too. Does it sound too good to be true ??? Not at all, all it takes is some investment in time to learn in a few one on one audio video sessions with me. Best part is it comes to you not free but at a cost per session to be decided by you. This money what I call “Guru Dakshna” is donated by me to charities of my choice.
My experience of over a year since I launched my web site www.moneymonk.me for this purpose as my contribution to the social cause has been mixed. While many started only a few had the time, priority and focus to continue. A few reached a stage where they could start making their investments as per their strategy in equities of their selection and start their journey of learning by experiencing towards their Financial Freedom. I would like more of such types to join and start their journey on the correct path.
Time is right to make the course correction and getting out of the present losses and start your journey to achieve Financial Freedom.
I am ready to take on a certain number of learners are you ready to be one of those ?? If you have it in you enroll on my web site to pursue it.
