Are You An Investor or Collector?

Be specific about your Investment Decisions, many investors are lured by the latest available investment products and they try to put their hands on every product.

This activity is a trait of a collector, not an investor. Collecting all sorts of investment products in your portfolio doesn’t make you an investor.

You might say, “I’m not involved in such activities, I only invest in mutual funds, stocks, or bank deposits.”

In that case, if you are including technology or pharma funds, along with multi-cap funds & midcap funds or you are adding various stocks because you like them or you are having multiple bank deposits, resulting in having 20+ mutual fund schemes, 25+ stocks, or 20+ bank deposits in that case you are a collector, not an investor.

When You are an Investor?

You are an investor when your primary goal is simplification, you invest in products that you understand and you focus on your ground rules.

You always say a big NO to instant gratification, you are focused on what you want and you follow a strategy.

If you have all these traits inside you and practice them in a disciplined manner then you are an investor.

What Should Be an Ideal Strategy for Investor?

Have a focused portfolio and less clutter, follow a diversified portfolio strategy, and stick to it, don’t invest in any stock, fund, or even investment product that you don’t understand. Take the help of a professional if you really feel the need. Don’t always try to do it yourself if deep inside you’re not confident about it.

Professionals not just help you in your investments, they hand hold you and help you sharpen your investment behavior & financial decision-making skills.

I have seen many investors losing more than what they save by not hiring a professional for their investments.

So, are you an investor or collector? Tell me in the comment section below.

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