You need a Financial Distributor now- more than ever!
It is a long-established fact that stocks tend to outperform other asset classes in a long run. But while paper returns from equities and equity mutual funds remain strikingly impressive, the unfortunate reality is that only a few investors end up reaping their rewards to the fullest possible extent.
More often, the reason for this contrast between published and actual returns is the lack of a qualified & competent Financial distributor working for you.
The need of support from an expert becomes more important during this COVID-19 induced panic times.
As an investor, you might have seeking answers to a lot of questions. Should I stay invested or redeem? Should I switch my money to less risky assets… or switch money into high-return assets? Will markets continue to rise further or start falling? Should I rebalance my portfolio at this time? Should I stop my SIPs and restart them at a more opportune time? And, so on and so forth.
In testing times like these, a Financial distributor can help you stay on a path that is good for you. Here’s how.
Saves you from emotional blunders
Guess who is your worst enemy when it comes to creating wealth from your investments? The answer is – you, your emotions! As markets oscillate between the depths of pessimism and the heights of euphoria, even the most seasoned investors fall prey to greed, fear, and a host of other behavioral traps.
Seasoned brokers can help you overcome emotions by using their experience of past market cycles and avoiding regrettable investment decisions such as exiting at market bottoms or piling on investments near market tops.
Steers you clear of Avoidable Investments
It’s a sad truth that bad investments have always existed around the corner. From the ULIP saga of the 2000s to the YES Bank AT-1 bond write-off crisis this year, investors often tend to fall prey to bad investments.
Having a trusted Financial distributor can be a great source of strength for you, as you’ll be able to steer clear of getting locked into poor investments that can end up destroying a great deal of your hard-earned money over the long term.
Helps you see the Bigger Picture
By aligning your investments to your long-term and short-term goals, a Financial distributor can help you see the bigger picture concerning your investments. In ensuring that you invest according to a fixed roadmap with pre-defined time-bound milestones, your Advisor can ensure that your investments are perfectly aligned to the tenor of your goals; hence, only long-term money flows into higher-risk assets.
As a result, you’ll be a lot more immune to the ups and downs of the markets, because your perspective on investing will be dramatically and positively altered.
Helps you pick the right investments
Left to their own devices, most investors tend to use short-term past returns as the barometer for choosing investments. However, this myopic tendency is the exact opposite of ideal, because what goes up comes down – and vice-versa!
Using their expertise and drawing upon concrete research that is generally not available in the public domain, a Financial Advisor can ensure that you select the right investments for your portfolio.
In doing so, your Advisor ensures that your portfolio is spread across investments that are poised to outperform in the future and deliver fantastic risk-adjusted returns to you over your defined investment timeframe.