Facebook TwitterLinkedInYoutubewhatsapp Start Planning for your Financial goals
Schedule Your Free Consultation
  • Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
Holistic investment planners, financial planning Chennai, Private wealth management Chennai

Holistic investment planners, financial planning Chennai, Private wealth management Chennai

Financial Planning chennai India, Private wealth management chennai India, Investment Advisory India, Systematic Investment Plan, Mutual Fund SIP, Mutual Fund ELSS, Tax Saving scheme

  • Home
  • About Us
    • Who we are & What we do
    • Services
      • Financial Road Map
      • Retirement Roadmap
      • Asset Allocation Plan
      • Webinar
      • Money Management
      • Wealth Management
    • In the Media
    • Testimonials
    • What Makes Us Different
    • How we can help you
    • Specialties
    • Honors and Awards
    • Vision & Mission
  • Resources
    • Blog
    • Articles
    • Podcast
  • Ideal Client
  • Contact Us
Six Deadly Investment Signs

Six Deadly Investment Sins

by Holistic Leave a Comment | Filed Under: Investments

Are Investors Emotional Or Rational In Their Investment Decisions?

Let’s start having a look:

The complexity of investment decisions has always made me feel whether investors made objective and rational decisions or were they swayed by their momentary emotions and psychology. The study of behavioral finance or how emotions and psychology influenced the way investors invested made me aptly think, “We can take the horse to the water, but can never force it to drink.” Even investment advisors can guide, but can never rule over investor’s emotions, and such emotions influenced the wrong choices or right choices they made, as also other investors decisions for wealth creation.

A bird’s eye view at common irrational investment behaviours:

1. Follow The Pied Piper:

It is quite right, these investors believe it is better to follow what others do, and they do not use their own discretion or rationality and just follow what others do and may be just pushed into the river as the rats with Pied Piper. This behavior influences market trend of investments greatly with sudden crashes after a rise, with certain wise and shrewd investors like Pied Piper making huge wealth by selling at the right time. You would definitely find at least one wise investor, who said, “I always told you to buy when everyone sold and sell when everyone bought.”

2. I always know and knew everything:

I-know-everything attitude can prove to be as destructive to wealth creation as following the Pied Piper. It is true that just like dictators as Hitler had a great fall due to lack of public opinion, lack of humility and patient analyzes by dialog and practical thinking makes these investors dig their own grave with their investment decisions at times.

3. I have always held these shares, and they can be good:

This behavior of holding on to something known, for fear of the unknown just like a baby holding on to his/her mother on the first day of going to a pre-school, is bad, as even a child realizes after a few days in school. Similarly holding on to certain investments because of the low price-earnings ratio, or being well-known companies may prove wrong when the company is sinking. It is true this chronic anchoring, without a fresh look at ones investment decision based on the play of market forces could even make one suffer huge damages.

4. I will not lose. It will pass:

To avoid surgery just because it may be a failure, or it is better to wait and see is just like holding on to shares of companies running at a loss with the hope things would improve. It is possible that such good times are just an illusion, making one suffer huger losses and greater psychological impacts for life. However it is quite likely that these lower prices could also be an indicator to buy by systematic investment/ systematic transfer plans and accelerate wealth creation with averaging. Hence an incliantion to learn and grasp basic investment principles and shrewdness to judge the nature of share price decline, whether it is temperory permanent can help make a wise investment decision .

5. Making a moutain out of a molehole:

Rationality escapes investor’s mind, which over-react to good and bad news. The recession during 2008 made most of the investors over-react by selling their shares and Mutual funds units thinking that the recovery will take a longer time and they lost in the bargain. Similarly, sometimes certain unscruplous investors spread wrong news about the profitability of certain ventures, with amateur investors over-reacting and investing all their savings in dupious ventures. The only advantage that such over-reaction has given is when one gets to invest in good value shares that appreciate in the long run.

6. Sentimental and emotional attachment to the holdings:

At times investors become sentimental with a particular share or a portfolio and they don’t want to sell those shares in any situation. One classic example is inherited investments.You may agree that sentimentality, being too attached to inherited investments without gaining from the uptrend trends is what fools do. It is true we inherit profitable investments from our parents, but if they cannot be encashed at an appropriate time, considered as a blessing and used, I see no reason for inheritance at all. Another classic example for this sentimental holding is ESOPs.

Some other based and baseless investment behaviors:

Look out for ceratin other investment behaviors like

1) Attachment to certain investments of a similar nature
2) Comfort zone for certain familiar set of investments,
3) Investments based on recent favorable or unfavorable happenings in the market.

These attitudes will make you biased in taking investment decisions. So you need to be more careful in dealing with these attitudes when taking investment decisions.

The ultimate word:

These are just guidelines for rational and goal oriented investment decisions . Happy Goal oriented Investing with wealth creation.

The first logical step towards goal oriented investing and wealth creation, you need to create a carefully thought out financial plan for the financial needs of your family.

If you have any comments or questions, write them in the comment box below.

Or are you interested in creating a Comprehensive Financial Plan for your financial goals?

Skip the queue by registering for your 30 Minute FREE Financial Plan Consultation. Click the ‘‘BOOK YOUR SLOT NOW!’’ button below.

Reader Interactions

Previous article: 8 Budgeting Misconceptions Demystified
Next article: 5 Blunders To Avoid When Stock Market Fall

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Client Login

Recent Posts

  • SBI Life Smart Annuity Plus: Good or Bad? A Comprehensive Analysis and Review
  • Unwrapping Mutual Funds: A Beginner’s Guide
  • LIC Bima Shree Review – Good or Bad Investment Option?
  • LIC New Money Back Policy 25-year Plan – Plan 921 Review: Good or Bad?
  • Tata Technologies IPO Review – Should You Invest?
Lingesh MMG
Lingesh MMG
20. September, 2023.
Na eppo tha financial goal la enna therunju kitta..enaku full support panna thuku thank you..🥰 friendly nalla pesuninga...
Ravi L
Ravi L
15. August, 2023.
Very knowledgeable and professional team, guided me with the precise financial solutions and timely suggestions.
Hardik Dave
Hardik Dave
5. July, 2023.
Holistic Investment is really nice and trust worthy financial planner. They plan things in realistic manner and also consider future dimensions of items also. They are always available for small or big queries, and also share knowledge and help you become more financial literate, and take right decisions in all financial matters.
Dr. Padmakar Wagh
Dr. Padmakar Wagh
27. June, 2023.
Mr Ramalingam who is the Director of Holistic investments has a excellent financial planning knowledge, the entire Holistic team has been very helpful in my financial planning journey and execution. This is my third year of financial planning with Holistic investments and so far I am satisfied with the progress I have made.
Binamra Dash
Binamra Dash
13. June, 2023.
Very knowledgeable team. Guided me properly with my concerns.
Murugan Bala
Murugan Bala
16. May, 2023.
I have been investing through Holistic for the past 4 years and my experience with them have been really good. The team of Rajan and Ramalingam doing excellent services in meeting my needs through proper guidance on investment options customized. Theya re always available on any specific needs time to time.I would recommend their services to my friends and colleagues too.
Neeraja R K
Neeraja R K
15. May, 2023.
Working with holistic investment planners was a really wonderful experience for me. For me the entire team had been very supportive in all ways. Their working strategy is well planned and methodical. They always keep me informed and updated about my investments, so that i can take informed decisions. The team first helps us understand the basics of investments, then they collect data, work with the data and then provide investments solutions according to our goals which i find it the best. Good luck to the entire team.
deepika kulkarni
deepika kulkarni
21. April, 2023.
We have availed holistic service from last couple of years and are very happy with our decision. Their systematic approach has helped us plan our finances and meet our goals. They provide very comprehensive and detail plan and resource management every 6 months which ensures we are on right track to achieve our goals. Rajan and Ramalingam from holistic are always there to help us with our queries. They have also accommodated any changes to our goals or resources mid year in a professional manner.
Ashook Panneerselvam
Ashook Panneerselvam
21. March, 2023.
For the past year, I have been interacting with Holistic Investment. I frequently read Nanayam Vikatan, which is a publication owned by the Vikatan family, and I was impressed by their financial advice. My brother also suggested holistic investing, and he also got excellent financial advice. Holistic Investment follows a methodical approach that I really liked because they first fully understand our financial situation "As Is," which includes "Assets" and "Liabilities," as well as our short-, mid-, and long-term goals, on the basis of which they provide a detailed plan on how to achieve our goals for which they are recommending various investment options. Even in the investment advice, why do they suggest particular mutual funds and what is the justification behind it, which adds transparency to the client. One essential factor is that they are always available. Even if I needed to make some urgent financial decisions, they were very helpful and kind to answer my questions via phone calls, WhatsApp messages, and emails. I was very happy with their service. Periodic reviews are also crucial, even though I have forgotten that they occur once every three months, and I also intend to renew this year.
Mahesh S
Mahesh S
19. February, 2023.
I have availed Holistic investment service for last 1yr against my early retirement decision. they provided me comprehensive detailed report how to move ahead with my existing resources. moreover, they are available to me whenever i have any doubt.. highly recommend others to avail their service
Google rating score: 4.5 of 5,
based on 104 reviews

Google Reviews

Lingesh MMG
Lingesh MMG
20. September, 2023.
Na eppo tha financial goal la enna therunju kitta..enaku full support panna thuku thank you..🥰 friendly nalla pesuninga...
Ravi L
Ravi L
15. August, 2023.
Very knowledgeable and professional team, guided me with the precise financial solutions and timely suggestions.
Hardik Dave
Hardik Dave
5. July, 2023.
Holistic Investment is really nice and trust worthy financial planner. They plan things in realistic manner and also consider future dimensions of items also. They are always available for small or big queries, and also share knowledge and help you become more financial literate, and take right decisions in all financial matters.
Dr. Padmakar Wagh
Dr. Padmakar Wagh
27. June, 2023.
Mr Ramalingam who is the Director of Holistic investments has a excellent financial planning knowledge, the entire Holistic team has been very helpful in my financial planning journey and execution. This is my third year of financial planning with Holistic investments and so far I am satisfied with the progress I have made.
Binamra Dash
Binamra Dash
13. June, 2023.
Very knowledgeable team. Guided me properly with my concerns.
Murugan Bala
Murugan Bala
16. May, 2023.
I have been investing through Holistic for the past 4 years and my experience with them have been really good. The team of Rajan and Ramalingam doing excellent services in meeting my needs through proper guidance on investment options customized. Theya re always available on any specific needs time to time.I would recommend their services to my friends and colleagues too.
Neeraja R K
Neeraja R K
15. May, 2023.
Working with holistic investment planners was a really wonderful experience for me. For me the entire team had been very supportive in all ways. Their working strategy is well planned and methodical. They always keep me informed and updated about my investments, so that i can take informed decisions. The team first helps us understand the basics of investments, then they collect data, work with the data and then provide investments solutions according to our goals which i find it the best. Good luck to the entire team.
deepika kulkarni
deepika kulkarni
21. April, 2023.
We have availed holistic service from last couple of years and are very happy with our decision. Their systematic approach has helped us plan our finances and meet our goals. They provide very comprehensive and detail plan and resource management every 6 months which ensures we are on right track to achieve our goals. Rajan and Ramalingam from holistic are always there to help us with our queries. They have also accommodated any changes to our goals or resources mid year in a professional manner.
Ashook Panneerselvam
Ashook Panneerselvam
21. March, 2023.
For the past year, I have been interacting with Holistic Investment. I frequently read Nanayam Vikatan, which is a publication owned by the Vikatan family, and I was impressed by their financial advice. My brother also suggested holistic investing, and he also got excellent financial advice. Holistic Investment follows a methodical approach that I really liked because they first fully understand our financial situation "As Is," which includes "Assets" and "Liabilities," as well as our short-, mid-, and long-term goals, on the basis of which they provide a detailed plan on how to achieve our goals for which they are recommending various investment options. Even in the investment advice, why do they suggest particular mutual funds and what is the justification behind it, which adds transparency to the client. One essential factor is that they are always available. Even if I needed to make some urgent financial decisions, they were very helpful and kind to answer my questions via phone calls, WhatsApp messages, and emails. I was very happy with their service. Periodic reviews are also crucial, even though I have forgotten that they occur once every three months, and I also intend to renew this year.
Mahesh S
Mahesh S
19. February, 2023.
I have availed Holistic investment service for last 1yr against my early retirement decision. they provided me comprehensive detailed report how to move ahead with my existing resources. moreover, they are available to me whenever i have any doubt.. highly recommend others to avail their service
Google rating score: 4.5 of 5,
based on 104 reviews

Footer

  • Articles
  • Gallery
  • Ideal Client
  • Jobs(Full Time)
  • Podcast
  • Services
  • Testimonials

Connect With Us

Holisticinvestment.in
10/15, Second Cross Street,
Seethammal Extn.,
Teynampet,
Chennai – 600 018,
INDIA.

Copyright © 2022. Holisticinvestment.in | All rights reserved.    Cared with ❤ by T-Square Cloud 1

×