We all know how important investment is for our life. A part of the money that we earn every month, should be taken to investment as well. It can either be a short term investment or a long term investment based on our capacity and age. If you are someone still very young, there is a good chance to take some calculated risks towards high-risk investments. If risks are high, the returns are also high. I think, I don’t have to detail so much about the importance of investments in this article because the topic I took for this article is a bit different one. In this article, I would like to share some views on how important it is to frequently monitor the investments that we make.
Big investors usually forget about their investments. Not every investor is like that but there are some people who find it very difficult to keep track of their investments. Some investments can grow big and some can give a huge loss. If there is income from multiple sources, it can be a challenge to keep track of the investments. Imagine whales investing in so many things and forgetting about the investments they made. I have seen that happening to many people.
I really wanted to write this article because today after almost like 1 or 2 years, I checked my share market investments. I have invested a hell lot of money on share market to grab some returns after 5 years. Today when I checked for the status, I found that the value of my investments has been halved because of the bear market. Though I’m not very sad about that because I’m not planning to withdraw them anytime soon, it is still a little pain to see such low value.
From this incident I would like to advise that any investment we make either it is a movable or immovable asset, it is important to track the investment now and then. It is something like if we are buying a house, we have to check the house frequently. Especially in India if we don’t do that for immovable assets, there is a high chance that someone else can take over the place. It is very easy and cost-effective to prepare fake documents in India.
Short term investors usually have this habit of checking their investments frequently and if any stock is not performing very well, they sell their stock and invest in something else. Not just for share market but also for any business. The stack holders monitor the investments frequently and if the performance is not very great they exit and invest in something else. Especially for diversified investment monitoring is very important even though it is painful to monitor so many things. But if we are concerned about our asset and if we value our money, then I think it will be ideal for that.
The problem is actually for the long term investors. I’m actually one among them. I should say that in my case, it is a lazy type of investment because the main reason why I went for long term investment is that I don’t have to monitor them every single day. I thought one fine day if I look at the value of my investment, I will feel very happy. But unfortunately, checking the price today only gave me a heart attack and not happiness. So, even if we are long term investors, studying stocks and monitoring it frequently is very important. What if suddenly a company is closed and if we hold major shares from that company. We might end up in huge loss. So, it is always wise to stay alert when it comes to investments.