A question that many investors face is – Should I to invest?
Before we get into figuring that out, let’s travel back in time.
An investment tip from the past
Around 110 years back in Oct 1910, Mr Johnson, who was having an enthralling family business for the last 200 years, was a worried man.
Why? Because something unbelievable was happening.
His business which his family had started was slowly dying.His family was in the business of supplying horses to the Government, and there was a massive demand just a few years back.
There were over 50,000 horses in New York City alone in 1905 just five years back, but suddenly they were disappearing from the streets.The demand was diminishing.
The reason for this sudden disappearance was the invention of the electric engine, which made goods carriage via horses redundant.
The cities were now flooded with horseless carriages. In 1912, horses were no longer the primary source of transportation in any major city in the US.
How could Mr Johnson not see this coming? Maybe he was relying on past performance, which has all the indicators to believe that a horse business will survive.After all, it has survived and thrived despite all ups and downs in the economy, famines and wars for over 10,000 years.
One critical thing what Mr Johnson was however missing, he wanted to change to another business ten years ago but was waiting for things to improve. He didn’t take this decision; instead, he decided to wait.
Deciding to invest today
Fast forward to the present day, and ‘when to invest’ is still a tough question for many.
The answer depends on your choice and how much risk are you willing to take – there are two risks. However, one is the risk for investing today and the second one – the risk for waiting to invest.
Are there opportunities? Yes. Is there a risk? Yes. Are these times vulnerable and uncertain? Definitely.Is this cumbersome? The answer is no.
So, is it a good time to invest?
Yes, you can invest online in any mutual fund – via SIP or in lump sum. It can be an effective way in which you will participate in the opportunity and minimise risk and save tax too.
If you believe in Gold Mutual Funds instead, you can invest in Gold Mutual Funds and Gold ETF’s too.
But then which SIP?And which Mutual Fund?
How to invest in mutual funds – The Egg Theory
Financial advisors will tell you not to put all eggs in one basket, but times have changed, today Eggs are available on different shapes and sizes with different nutritional quality.
Within Eggs, there are healthier eggs too, choose the right ones and right baskets.
But you must start your journey and don’t wait just because you believe that times are uncertain and changing.
They have always been and will always be.
Written many years ago, these eternal words of legendary singer, Bob Dylan are as relevant today-
“And admit the waters around you have grown, and accept it that soon, and you better start swimming, or you will sink like a stone, for the times they are a-changing”.
Key Takeaways:
- Wait, but don’t prolong it. You might lose a good opportunity.
- There will always be a certain amount of risks involved in starting something new.
- Calculate your risks and begin your journey.
- Invest according to your risk appetite.
- Diversify your investment portfolio.
- It is always necessary to research before investing.