The monsoon season is here and many of us are super excited to sip hot tea/ coffee while listening to the voice of rain falling on our rooftops. Monsoon is a great season with a cold breeze, drizzles of water everywhere and a great atmosphere. Amidst all this, who would have imagined monsoon could teach so many financial lessons!
Here are some important financial lessons that monsoon teaches us:
Watch the potholes before rain arrives
Before it rains, the municipal corporation prepares for rains. It rebuilds the roads, covers the potholes, makes provisions for the rainwater to flow without causing trouble in the regular route. Similarly, you also need to plan to avoid the risk effects of investing in the financial world. Before investing, secure yourself to cover up the risk associated with the finances and emergencies. You should be secured with health and life cover to be assured you and your family is ready to face crises.
Don’t leave without protective gear
Just when the monsoon arrives, you should make it a point to not step out of the house without an umbrella or a raincoat. This is an important lesson in the financial world. Never go without a low-risk investment. While stepping into a high-risk market make sure that you have low-risk investments which will surely yield some returns in regular time intervals. The best way to invest is to spread your risk over the different investment options to minimize the risk. Increase the depth of your portfolio to decrease the risk and increase the returns. Look for safe investments with high returns. Calculate the mutual fund returns.
Drive slow but steady
In a journey, you cannot abort your journey or change the destination because the road is blocked, or waterlogged. Everyone finds a way to his destination. This is a very important lesson. While investing one needs to fix a goal in terms of the amount you need to make your dreams come true and the tenure you want to achieve this amount. Once this is decided, despite the unstable market and unpredictable events, you need to hold on, have patience, run a hit and trial on the portfolio, try different funds and diversify your risk and reach your financial goals. Most importantly, staying invested in the long run is how you get a high return on investment.
Follow the predictions but trust your instincts
Sometimes the prediction may say that the rains are unlikely, a thunderstorm or light showers. As a precaution, you may carry an umbrella. But sometimes the predictions are less than accurate. Similarly, while investing, you always need to keep an eye on the general trends and follow it, but sometimes if your instinct is very strong, you can go against the flow and take unusual decisions because not everyone would have the same portfolio and financial goals as you. So, you need to make decisions for yourself.
With these lessons, you can churn your investment portfolio or start one if you don’t have any. Finserv MARKETS can help you, whether it is comprehensive car insurance you are looking for or an individual health insurance plan