Why We Procrastinate Investing And How to Overcome It.

We all know and struggle with procrastination, particularly starting our investing journey.

Many of us know that it’s the best way for us to achieve our financial goals, but yet we still put off making our first investment.

A major reason we put off investing is because we’re "afraid of losing money."

This is known as "loss aversion", a cognitive bias in which we tend to prefer avoiding losses, even if it will give substantial profits in the future.

How you can overcome it?

Change your thoughts about investing from “I’m afraid of losing money” to “I will definitely make money”.

This small shift in your mindset, can help you get over your inertia in investing.

It may have been a difficult first step to make, but once you do it, you’ll not regret starting your investing journey.

Do it now!

Historical Sensex Returns Updated - 2024

Historically Sensex has given returns of about 15% per year, despite volatility and price fluctuations of about -20% to +60%. The following table shows S&P BSE Sensex historical data - start & close values and the yearly returns of the sensex from 2000 to 2024. So far during the year the index has hit an all-time high of 75,124 and despite markets hitting all time highs not all stocks make all-time highs. There are many stocks still below their highs. Stocks like HDFC Bank, ITC, Asian paints are still well below their highs and some of them have given low returns over last 3-5 years. Individual or Retail investors can achieve consistent returns through investing via mutual funds , whether it be active or passive. Chasing returns from individual stocks is futile. Be a wise investor !

Tracking Difference in ETFs and Index Funds

As we all know, an index fund is a type of mutual fund or exchange-traded fund (ETF) with a portfolio constructed to match or track the components of a financial market index, such as the Nifty 50 Index. Tracking difference is the discrepancy between Index Fund/ ETF performance and index performance. Below is the ETFs and Index funds with high tracking error. The above tracking error is since inception. ETFs and Index funds are considered to be low cost, but in here in India, the tracking difference are quite high and add to that expense ratio, the total works out to over 1-3% and higher in certain cases. These ETFs and Index funds are no longer low-cost as one would expect them to be.

Master And Student

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