We love uncertainty and fluctuations in Books and Films but when it comes to life we have a strong desire & belief of certainty.
We want someone to tell us what the future will look like even though we know there is no such thing.
Like when Rain will come ?
When Covid will finish ?
What will be Market ahead ?
But uncertainty, fluctuations bring surprises and that is the Reality of life. As a investor we need to embrace those things.
It’s an inescapable part of life.
Surprises, Uncertainties, fluctuations, all are bound to happen and you just need to ride with it.
The fact is that Money Safety = Positive longer term wealth creation after inflation and taxes.
We can see that assets like FD’s, Gold, Bonds are like parking space & with equity asset only you can build up your building.
Fluctuations in equity isn’t risk.
Acting on those market fluctuations is risk.
If you don’t panic , you don’t sell. And if you don’t sell, you get participation in the uptrend of great companies.
Safety of equity rises with the time horizon and it’s the only way to get ahead and stay ahead than our lifestyle.
Individual stocks = fluctuations= may be loss
But
Broad based diversified portfolio managed professionally = Fluctuations never be loss.
Equity = Real retirement safety + Multi-generational wealth
Volatility isn’t a risk but it’s a mere fluctuations of temporary downs for permanent ups.
Volatility in efficient economy like India is a friend and helper of real safety .
And higher the return, safer the asset class net of inflation and Taxes.
Wishing you all a happy and healthy financial life.