Why Most Investor See No Progress

It's not that a lot of people doesn't invest, it's just that they are not consistent with the investment. I was reading a news where it is mentioned that average holding period of mutual fund investors is getting reduced day by day.

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So it's not that people are not investing, it's just that they are have not given enough compounding time to grow the money. For example, you might have got a good return and market starts to fall. You take out the money but don't invest again when the market stars to rise again. So what you lost, you lost the time in the market. So instead of taking out fully, you can book the profit and then reenter the market when the market fall substantially. Or you can continue to invest more and more so that you get the dollar cost averaging and your returns will increase in the future.

And that's why people who are constantly increase their SIPs, investing for the long term and remain consistent always progress. But if someone is not doing this, even after investing there will be no.progress at all. You can't control the market but you can control which asset you can invest on. And that's why good diversification is required so that your money keeps on earning in any market condition.

If it's bear market, then gold and debt would be good. If it's bull market then equity is good and that's why the balance is so much required. So along with the consistency good abalone portfolio is needed to see the real progress. Yeah sometimes you might not see the difference in 2 to 3 years but that doesn't mean you should stop the investment. One fine day you can see that the market boom and all the investments you have done will be fruitful at that time.