Have you considered why you are investing? Is it because you have money, someone recommended a product or asset, or to fund your financial goals?

When I see someone invest in any assets or products, I find that they have no idea why they are doing so. They are earning, have a monthly surplus, and someone recommended a few products, so they are investing. Is it a good idea to invest in?


In many cases, the goal is simply to earn higher returns than bank FDs. As a result, the search begins with looking for ways to generate higher returns. They eventually join some Facebook groups, follow a few financial influencers, or join some Telegram groups. Each of these groups has its own style for spreading the investment style. You will naturally gravitate toward those who are active in those groups. Begin to regard them as financial mentors. But have you asked yourself what your financial objectives are? Why do you have to invest? What is YOUR risk appetite as opposed to the risk appetite of the group or your mentors?

In personal finance, because each of our financial lives is unique, so are our behaviour, risk-taking ability, goals, and investment style. However, we never question ourselves along these lines. We simply follow because the main idea is to generate higher returns or the best possible returns for your money.

High returns and achieving your financial goals are not synonymous. The financial industry wants you to believe that generating the BEST and HIGHEST possible returns is an investment success. As a result, you must hire or seek the assistance of someone to achieve this goal.

Consider the case of child education. When are you going to be happy? When do you have enough money to fund your children’s educational goals, or when do your products or assets generate the highest possible returns? What good is a high-return asset if it does not generate enough money to fund your child’s educational goals?

Generating the highest possible returns or beating the index is not the same as allocating sufficient money to your financial goals.

Will you be satisfied if you generate the highest returns but fail to save enough money for your financial goals? The obvious answer is NO.

However, if you generate modest returns while also meeting your child’s educational goals, you’ll be happy, right?

As a result, blind investment strategies such as having a surplus or generating the highest possible returns are nothing more than strategies that will never make you happy in life. Rather than attempting to generate the highest possible returns, define your financial goals, analyze the time horizon remaining and the amount required, and strive hard to achieve the goals.

Looking for the best strategy, asset, or product to generate the highest returns is like shooting a gun in the air. You have no idea where you’re going or what the risks are.

2 Responses

  1. Very apt article.

    Most of the people do invest in various products, like shares, mutual funds, real estate, gold, crypto currencies; but without financial goals defined. This may or may not result in achieving your personal financial goals. I have seen people investing in real estate for child education. Real estate is non liquid asset and you can not sell part of the house for paying the fees for education, which probably is ignored.

    Having well defined financial goals and then deciding suitable products i.e. Equity or Debt; to achieve those goals is more important than chasing higher returns or just investing in large number of products.

    Most of us may have realized this late in life but I believe that, people should learn this at the young age, so that they can take more informed decisions.

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