When an infant is born, usually the doctor provides a file to monitor the development stages of the infant to the parents and explain the precautions to be taken during the phases of development. These precautions could be in the form of food that the infant should take or the vaccinations the infant should take etc.
Now we all are very well aware that a child needs sufficient time to grow. We nurture the baby, feed them slowly and steadily depending on the stage/age of the infant. Developmental milestones are measured as and when the stage is reached.
Is it possible to defy the nature and get the child into adulthood or get the child grow faster than his/her natural course? No, isn’t it!!!
Most families have two children. We spend a lot of money over a 25 year period in educating our children, providing for all their needs, marrying them off – in short, getting them well settled in life. It’s the investment that parents do on their children so that they are well settled in their lives. Investment is not just in terms of money spent, it is also about the handling emotions and behaviour patterns over period of time.
Now think about it, can we treat investments also as one of the child?? Thinking why such question? Are you thinking what am I trying to relate between children and investments??
Just imagine, if you treat this investment as your third child, and invest same amount of money, heart & mind and behaviour patterns each year for this child too and do this for the same 25 years. After 25 years, when your real children have taken off their lives ahead, this 3rd child will look after you very well for the rest of your life.
Now think about it – will you give up on your children when they fall off the track and change the kids? No isn’t it!! We always try to put them back on track and correct the course. In the similar way, what I mean when I say put in heart / mind and behaviour, what I mean is , when there are ups / downs in the market or valuations on your mutual fund portfolio, don’t panic and run away from investing.
Continue to stay invested, seek help and make the corrections if required and most importantly have a lot of patience to help this child to grow so big that, your rest of life is taken care by this child. Wont you do this for your real children, then why not for the child who is going to be with you in your retired life.
# Mantra to investments – Discipline, Consistency, Patience and last but not the least stick to asset allocation always.
Wish you Happy Investing and Happy Life’s Journey!!