1. It's a ground reality that as long as money is there, we are happy, even if it is lying unutilized and idle, and often realize too late that our obsession with capital protection is harmful for creating wealth, because it's not possible to put our money to earn "real" returns and protect it as well.
2. It would be easy for all of us if investment choices for "real" returns were simple, straightforward, and came with that one factor that pleases us—no damage to our invested capital.
3. Studies suggest that we like to use rules of thumb that make our daily life easy for us, as we are not too capable of making complex decisions involving many variables, hence search for simplicity everywhere.
4. When it comes to finance, we, therefore, choose to clutch on to capital protection and "promised" returns, because a deep fear of the unknown engulfs us when the thumb rules in our mind get broken too often during our long-term investment journey.
5. To overcome this simplicity and fear towards investments, we should mull what others do with our money, including our post office, banks, corporates and fund houses, because they do precisely the same thing - investing it on our behalf to build assets or create wealth - and this activity can't be done without taking risks, and the "real" returns from these assets will be used to provide us the return on our invested capital.
6. How these financial assets will perform in the future is an unknown variable for all investors, including our post office, banks, corporates and fund houses, and even the best-managed businesses can collapse, and their well-thought out strategies can misfire.
7. Students pursuing a professional degree course, without a promised job, have also made a risky investment.
8. Tourists satisfying their hunger at various eateries in a new town, have also taken risky decisions.
9. And there is no rule in the book that would have helped them make such choices with "guaranteed" outcomes.
10. Actually, we should just overcome our fear of risk by segregating the risk that is avoidable, as it is not only a theory but an investing reality that there is no return without risk.
2. It would be easy for all of us if investment choices for "real" returns were simple, straightforward, and came with that one factor that pleases us—no damage to our invested capital.
3. Studies suggest that we like to use rules of thumb that make our daily life easy for us, as we are not too capable of making complex decisions involving many variables, hence search for simplicity everywhere.
4. When it comes to finance, we, therefore, choose to clutch on to capital protection and "promised" returns, because a deep fear of the unknown engulfs us when the thumb rules in our mind get broken too often during our long-term investment journey.
5. To overcome this simplicity and fear towards investments, we should mull what others do with our money, including our post office, banks, corporates and fund houses, because they do precisely the same thing - investing it on our behalf to build assets or create wealth - and this activity can't be done without taking risks, and the "real" returns from these assets will be used to provide us the return on our invested capital.
6. How these financial assets will perform in the future is an unknown variable for all investors, including our post office, banks, corporates and fund houses, and even the best-managed businesses can collapse, and their well-thought out strategies can misfire.
7. Students pursuing a professional degree course, without a promised job, have also made a risky investment.
8. Tourists satisfying their hunger at various eateries in a new town, have also taken risky decisions.
9. And there is no rule in the book that would have helped them make such choices with "guaranteed" outcomes.
10. Actually, we should just overcome our fear of risk by segregating the risk that is avoidable, as it is not only a theory but an investing reality that there is no return without risk.