For most of us, our first foray into investing is by way of opening a savings account (see post "Is a savings account as investment?).
We got used to its stability and predictability that it formed a belief in our mind as to how a "safe investment" should behave.
This belief became our template for determining which prospective future investment is "safe" or "risky"?
The nature of an equity investment is completely opposite the behavior of a savings account; while a savings account is steady and predictable, equities are volatile and unpredictable, hence the fear of investing money in the stock market
We have to understand that different asset classes behave differently, they grow/fall in value in disparate manners and have to be appraise based on their respective characteristics
Comparing a savings account to an equity fund is like comparing apple to oranges.
#acgadvice
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