Updated: Feb 15, 2022
We are big fans of Dilbert. He keeps us amused all through the ups and downs of the market and life. With the calendar year nearing its end and the mood festive, it’s a good time for a hearty laugh. Enjoy part 2 of Dilbert’s investing humor.
Timing the Market
One can keep waiting for the right time to invest or do the smarter thing and keep investing periodically. There’s no guarantee you’ll manage the former but the latter will help ensure you average out your cost of investment and don’t miss out on a bull run. Coming back to guarantee - later one doesn't have it either.
Do you invest in stocks and mutual funds by comparing only past performance? Momentum investing with back testing became talk to the town in 2021. While past performance is a relevant parameter, it should never be the only one. After all raat gayi baat gayi! and it doesn't factor that we are human beings and not machines.
Self-help is the best help or go for index funds. We’ve said it before and we’ll say it many times in the future too – investing is not rocket science. Read the fine print of every investment document or read stock articles by SocInvest. Either ways, save your hard earned money. Every penny counts in compounding game.
Mutual Fund Fees
Have you been investing in regular option of mutual fund schemes? Have you evaluated the fees you’ve been paying to mutual fund managers? Expense ratio for equity mutual funds which includes manager fees can be as high as 2%, deducted from your investment money! But let's not talk too much on MF fees - as Mutual Fund Sahi hai!
2021 was the year of discount brokerage: US - Robinhood and India - Zerodha, Uppstox etc. Brokers play a key role in your investment journey. They provide the sleek interface for you to invest at the click of a button (and gamification). But don’t confuse brokerage with guidance - they earn more when you TRADE and not INVEST. Do your own research.