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  • Category: Miscellaneous

    What clicks in an investment - skill or luck?

    What clicks in an investment - skill or luck? is a question that many people ask the experts in finance and investment sector. There is no simple answer to this question because whatever investment one does especially in the market like equity, bonds, mutual fund, company deposits etc, there are so many factors which affect it that we are not sure of the final result about the investment whether there would be handsome gain or in extreme cases even the principal amount may deteriorate in value. That is the reason why many people keep their money in Govt banks or post office getting low risk low return.
    Even the most skilled people in the game of investment in market find themselves trapped in crisis where the chances of losing money seem to be more than making it.
    What is your experience in this regard? Do you think that investment is a game of skill or there is some luck factor also associated with it? Please share your views.
  • #756539
    It is really an interesting thread by the author interested to know he fate of investors who have opted for investments in the diversified funds of the capital market such equity, balanced mutual funds, bonds, company deposits and so on. Yes, the market seems to be volatile and if there is the erosion of the money due to the fluctuating conditions of the market, there is a panic wave among the investors. The principles of such investments should be made for the long time horizon as frequently suggested by the financial consultants but the fact is around 30% of the investors constitute senior people having invested their hard earned money to these instruments with the hope of getting huge benefits from such investments. They cannot wait for long for the substantial gains of their investments. It has been seen that they are the great losers ultimately due to the fluctuations of the market. Hence for the senior people, it is always better to stay away from the risky investments and they should remain invested in the bank fixed deposits to meet their expenses though such incomes are not attractive enough but at least no risk of return of money is seen.

  • #756541
    For that matter I am totally against the investment in bonds, equity and shares. But what I have done is the long time investment on mutual fund in a performing company and that was fetching me good returns even during the covid situation. One must have the best investment done in good companies for which there must be skill and luck so that both would favor for a good growth of the investment. Never go by the advice of others, just follow the past and present trend of mutual fund of a particular brand and do the investment for long duration. There is no loss but good returns for sure. Investments are subject to market risk but there is also luck element as some investments bring in good returns in short period and for that the right timing matters. So next time you believe yourself and do the investment.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #756590
    It is as good as gambling only. There is no skill here I think. A financial consultant in Hyderabad invested his money in an investment expecting very high returns. His own money he has invested. Earlier he advised many clients to invest in good instruments. He lost that money and now he is struggling. There are two accepts in this. Security of money and high returns. So one may be very intelligent and may predict things and invest but the chances will be always to lose money. That is why many people go for FDs in banks so that their amount is safe. There may be some luck factor involved but we can't depend on this luck always.
    Based on your age and the money you have with you you have to play around. Never keep 100% of your funds at risk. That will ensure that you will be sure that you will never lose your entire savings.

    always confident

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