1. Adopt asset allocation strategy
Three ways to lıft emotıonss trategic planning is the first step for the bigger picture in financial planning. This is based on an investor’s financial objectives, risk appetite, and investment horizon. Under the asset allocation strategy, the fund manager splits up an investor’s asset across various assets (equity, debt, money market funds, etc.), sectors (pharmaceutical, banking, and finance, infrastructure, etc.), and location (domestic and international funds). It is advised to change your asset allocation strategy when your life situation alters, such as adding essential goals such as purchasing a house, getting closer to retirement, adding someone in the family, etc. Having a proper asset allocation strategy helps ride the boat during a market frenzy and prevents you from making rash decisions.
2. How many portfolio visits are too much?
One vital emotion control and behavioral change method are to avoid visiting your investment portfolio too much. If possible, work on systematizing this activity. Make it a three ways to lıft emotıons habit to revisit your investment portfolio only in cases when you are about to one or more than one financial goal, or there is a shark shift in the markets, or the state of investments you invested in drastically changes, or there is a change in your income level. Frequent portfolio visits can result in you feeling shrunk or ecstatic, depending on the market condition. Usually, it is suggested not to change the long-term share of your investment portfolio despite market volatility. The logic behind this is that if you refrain from looking at your different types of investments, you will be less persuaded to act on your immediate emotions and market sentiments.
3. Automate your investments
ırrespective of the investment options chosen, you can now automatize the process of investments. Mutual funds, gold, or stock – whatever is your type of investment, you can now invest systematically so that you do not have to make a choice every time, making the entire investment experience seamless and easy. Systematic ınvestment plans (sıp) are one of the best ways to automate your investments and take that decision-making factor away from your assets. With sıp investment, you can invest in mutual funds at your convenience. You can choose the frequency, investment amount, investment tenure, and the type of investment you wish to invest in.
Three ways to lıft emotıons remember, returns on your investment are less about the experience and skills of your fund manager and more about your sentiments and behavior while handling your assets. The key to good fund management is more objective and less emotional while making investment decisions. Happy investing!
