Summary
This blog celebrates the rise of DIY investing via platforms like Groww, Zerodha, and others, empowering a new wave of investors. It warns against pitfalls such as chasing short-term gains, sector-specific hype, and undue influence from social media. Emphasizing strategic, long-term investing aligned with individual goals, it advocates for informed decison-making and thorough research. The message: weild your investing power wisely for sustained growth and resilience in the market.
Hey there!
You’re doing something incredible, and I just had to reach out. You’re changing the game, and that’s exciting to see. At DSP Mutual Fund, we've noticed that 40% of our new investors are people like you who’re using DIY (do-it-yourself) platforms like Groww, Zerodha, Paytm Money, and PhonePe. You’re not just following trends; you’re setting them, and that’s pretty cool.
These apps have totally changed how we think about investing, right? The convenience and freedom they offer are incredible. Imagine having an investing playground right in your pocket, where you can explore a ton of funds — all from different mutual fund companies — and then filter them based on factors like returns, AUM, and more. And the best part? You're the one calling the shots.
But here's something to think about: some of you are making investment decisions based solely on recent performance, and that can be risky. Sure, these apps make it super easy to pick funds, but without a solid strategy or sound guidance, you might miss the bigger picture. This is borne out by the fact that more and more young investors are pulling out of their investments prematurely or scrapping their Systematic Investment Plans (SIPs).
Consider this: 80% of SIPs are discontinued within the first three years, and over 70% of the remaining ones are geared towards regular schemes recommended by mutual fund distributors or individuals giving advice.
Plus, there’s a lot of hype around funds oriented towards specific sectors like IT, healthcare, or infrastructure, particularly if they’ve done well in the recent past. They might be hot right now, but remember: what goes up must come down. Their performance depends on market cycles, which a retail investor probably won’t track too closely. A downturn can result in you exiting the fund too quickly, thus missing out on the benefits of long-term compounding.
A legendary investor once said, “If you aren’t thinking about owning a stock for 10 years, don’t even think about owning it for 10 minutes.” So, keep your cool, don’t stress out over short-term ups and downs, and focus on the long game.
While DIY investing is awesome, let’s not get blinded by the promise of quick wins. Your investment choices should reflect your goals, risk tolerance, and time horizon, not just immediate returns or what’s trending on social media.
Also, a quick heads-up: social media can be a goldmine for investing tips, but don’t believe everything you see and hear. Double-check whatever “financial influencers” confidently declare, and do your homework before making any moves.
The bottom line? Remember to research investment products thoroughly, and avoid the pitfalls of short-sightedness and digital hype. The power is in your hands, so use it wisely.
Here’s to investments that not only grow but also stand the test of time. Keep rocking it, and happy investing!
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Disclaimer
In this material DSP Asset Managers Pvt. Ltd. (the AMC) has used information that is publicly available, including information developed in-house. Information gathered and used in this material is believed to be from reliable sources. While utmost care has been exercised while preparing this document, the AMC nor any person connected does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. The recipient(s) before acting on any information herein should make his/their own investigation and seek appropriate professional advice. The statements contained herein may include statements of future expectations and other forward looking statements that are based on prevailing market conditions / various other factors and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. The sector(s)/stock(s)/issuer(s) mentioned in this presentation do not constitute any research report/recommendation of the same and the schemes of DSP mutual fund may or may not have any future position in these sector(s)/stock(s)/issuer(s). All opinions/ figures/ charts/ graphs are as on date of publishing (or as at mentioned date) and are subject to change without notice. Any logos used may be trademarks™ or registered® trademarks of their respective holders, our usage does not imply any affiliation with or endorsement by them. These figures pertain to performance of the index/Model and do not in any manner indicate the returns/performance of the Scheme. It is not possible to invest directly in an index.
All content on this blog is the intellectual property of DSPAMC. The user of this site may download materials, data etc. displayed on the site for non-commercial or personal use only. Usage of or reference to the content of this page requires proper credit and citation, including linking back to the original post. Unauthorized copying or reproducing content without attribution may result in legal action. The user undertakes to comply and be bound by all applicable laws and statutory requirements in India.
Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
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