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

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

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Biggest threat to investment decision

The biggest threat to your Investment Decisions and what you can do about it!

by Holistic Leave a Comment | Filed Under: Investments

One of my clients got a call from her mother when we were seriously building her portfolio. I enquired after seeing her panicky reaction. Her mother wanted my client’s son to be removed from a school immediately because there is an accident happened in the swimming pool. The student died during a swimming session. How correct the decision would be to take the child out of the school without understanding what exactly happened?

Be it good or bad, human mind takes decisions based on availability bias. Read ahead to understand the impact of availability bias in the investment decisions we make and how we can avoid this situation.

What is availability bias?

The availability bias is nothing but taking decisions influenced by the recent happenings or under dramatic circumstances. Most of the times, we make decisions based on such occurrences. Yes, we do this while investing our hard earned money.

What happens when you take investment decision influenced by availability bias?

How do you decide to buy or sell stocks?Do you just rely too much on immediately available information? It could be something you read in a paper, advice from your friend or hyped among investors. Do you know what happens when you take such decisions?

You must know about few incidents that happened in the recent past. India’s largest coal production company Coal India came public in 2010. It was known as ‘mother of Indian IPO’. Some even claimed that Coal India IPO would show the mountain to climb for the investors. The investors rushed and bought a high number of stocks. Look at it now, just within 3 years. As the coal prices and so the stocks going down, it is considered as the most dreadful investment option by the investors. The reliance IPO stands out as one more example here.

The same happened with the tech bubble in the end of 19s and the beginning of 20s. Everyone wanted to become an entrepreneur and holding some stocks that has ‘.com’ in its name. Not only in India, house bubble that occurred in USA is the perfect example of people loosing huge if the decision is taken because of availability bias. The reason is the popularity of the products.

How can we avoid falling a victim of availability bias?

Sir John Templeton, a brilliant investor and mutual fund pioneer, even advises us to avoid popular. He says, “Avoid the popular. When any methods of buying or selling stocks become popular, move on to the unpopular one”

Taking decisions based only on emotions, immediately available information, popularity leads to disaster. What can be done to avoid putting ourselves in such scenario? Study, study and study more about the product before investing in it.

Read, analyse and map with your goals while creating a portfolio. Invest in a product only when you have made enough research about it. Listen to what others are saying without having any prejudiced thoughts. Use the information collected from others just as pointers for your research, not for taking any major decisions. Analyse the pros and cons of each product.

Seeing any red flags in the portfolio. Do not ignore them. Dig more to understand why you have them in red. At the end of the research the red ones may become green and vice versa.

Bottomline

Think about September 11 terrorist attack on the twin towers in America. Remember looking at the planes crashing at the twin towers and the fatality it brought in? Imagine, what would have happened if people chose to go by road instead of flying due to availability bias? Road accidents would have gone up. Whereas in reality, flight journey has become much safer due to the safety measures applied all over the world.

Likewise, not getting influenced by your emotions, the recent ups and down in the market , information from your friend or family is very important while taking the most important decisions about your investments.

Still feeling difficulty to get rid of these. Follow the simple exercise to get rid of availability bias.

  • Write about a product you want to buy or sell
  • Write about the reasons why you want to buy or sell
  • Take a break once written. Go out for walk, read a book, watch a nice movie or play with your child, so that you don’t think your investments.

After a break read the reasons again and again. You will get a clear picture on what exactly needs to be done now. Take your decisions brilliantly now!

To understand our unique Holistic Financial Planning Process we offer 30 minutes free consultation

 
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Jey S
Jey S
24. September, 2021.
I have been using Holistic Investment Planners for the last three years. Mr. Srinivasavaradhan answered all my questions and doubts very patiently during the first free consultation. I was able to clearly define my short-, medium- and long-term goals once I signed up for the comprehensive plan and got their investment plan suggestion to achieve my goals. They are very polite and highly professional whenever I contact them for any queries or make investments. They never pressurize you to invest on their recommended financial products. I would have been lost money by investing directly without their help since I do not have time and knowledge about different financial products. Risk planning is also done as part of financial planning. Truly, they are holistic planners when it comes to your financial planning. They help you to define your life goals, understand your financial resources and establish a plan to invest towards reaching those goals. They do review your plan as you progress to make sure that you are on correct path to achieve those goals. Kudos to the team and keep up the good work!!! I am happy that I found holistic investment planners for my financial planning and management.
aksaswadkar
aksaswadkar
24. September, 2021.
I was about to retire and really not understanding how to invest money to have financial freedom and fulfilling my goals. Was desperately searching on internet way out and fortunately came across Holistic Investment Planners. I read number of articles on their website and realized that this is the agency which I want and engaged their services for my retirement planning. It is an excellent experience to be associated with Holistic. Right from day one our interaction was fantastic and they gave me such a wonderful plan that I had never imagined. I am fortunate enough to be in the client list of Holistic. I have recommended Holistic to my friends as well.
Lionel Faber
Lionel Faber
16. September, 2021.
I've been availing their services for the past year. They are highly knowledgeable in the field and are very patient with all doubts and queries. Personalized financial planning is provided keeping your short term, medium term and long term goals in mind. They do not pressurize you to purchase schemes of their choice. They provide their input and suggestions and leave the decision up to you which shows their honesty and high principle.
Sridhar
Sridhar
8. September, 2021.
Financial planning brings peace in life. Holistic Investment have supported in arriving financial plan based on future goals. My investments are regular since then. They are professionals in their business, will recommend others.
Nitesh Agrawal
Nitesh Agrawal
6. September, 2021.
I have been using Holistic Investment Planners from last one year. The journey has been fantastic. Being a finance person myself I always thought we can look after and plan own finances also. However, due to lack of time and deciplain the things are not always as desired. After joining with Holistic Investment for the first time Icame to know the Financial goals and quantified them. Some dreams were unrealistic based on the earnings and savings so had a reality check. Also got the information and deciplain of investing on regular and more rewarding securities. I definetly suggest to use Holistic Investment Planners. They are professionals, available and hear youor full story before presenting plans. They are flexile in the sense if there are some urgent deviations required, they help to plan the same. For all professionals/individuals I would suggest using professional help of Holistic Investment Planners for best results in long term investment and financial goals achivements. Last advise will be to start early in your life. It really pays well to start in the beginning itself else the dreams needs to adjust :)
Swetha Vasanth
Swetha Vasanth
6. September, 2021.
This is my first year service with the Holistic Team and I would say that they are very much helpful in creating a financial plan and follow ups during the year. I would definitely suggest them if anyone who is willing to proceed with their savings professionally.
Joseph Mathias
Joseph Mathias
6. September, 2021.
I came to know about Holistic Investment Planners online while searching for different investment ideas. Once I contacted them the journey was very smooth. Mr. Ramalingam explained all the aspects of Financial planning in detail and it opened my mind. I realized how important it is to have a Financial planning. Mr. Rajan suggested all the requirements as per my goals and made a Investment plan keeping in mind of my goals. I started my Investment journey with them. I wish I had done it some years back then it would have been in a different level. Review meetings were held every six month to check the implementation of the plan and check the results as per the requirements and to check if any changes required. Overall it was a good experience with Holistic Investment team and would like to continue in the years to come.
Srinvas Kannan
Srinvas Kannan
30. July, 2021.
I came across Holistic investment planners almost 5-6 years back, but I did not have the trust since I had met a few of them who did not sound promising. Then I started investing through a financial advisor of my friend. After 4 years of investing the returns were very low. I was disappointed and started looking for financial advisors when I came across Holistic investment. I had a detailed discussion about my goals and the way they would approach achieving my goal before deciding to switch my investments to them. After a thorough analysis of my then existing portfolios, they suggested new ones and we zeroed-in on 6 schemes/funds where our investment would be split. I am glad I made the decision of switching over and taking Holistic planner's advise, my returns are handsome and I only wish I could have taken their help/advise 5 years back itself. Neverthless, I would like to recommend their services for investment and financial advise if someone is serious about their investments.
Shivaram Andiappan Selvaraj
Shivaram Andiappan Selvaraj
3. July, 2021.
I got a free first time consultation. I got my doubts resolved. They also gave additional advises for investment planning which was also useful.
Nellai B
Nellai B
26. June, 2021.
I have been associated with them for the past three years. They are very professional and polite in answering all our questions. I have complete trust in their suggestions. I strongly recommend for anyone. I am looking forward to have strong and successful association with them.
Google rating score: 4.4 of 5,
based on 61 reviews

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