3 reasons why your investments fail

More than 70% of retail investors lose money in the stock market. Despite this risk, only 12% of Indian investors seek guidance from financial advisors, according to a 2018 ET Wealth survey. Most self-directed investors, despite investing for a long time, lose money because they do not understand these 3 key aspects:

• allotment: You don’t allocate assets wisely
• risk: You are exposed to avoidable risks
• strategy: You don’t have an investment thesis

These 3 common problems were identified among clients who sought assistance from SEBI-registered investment advisory (INA000012218) firm Finology Reserve (https://reserve.finology.in/).

Do you feel that your portfolio is also suffering losses? fill it up nomination form To receive a diversified investment plan designed for you by Finology Reserve, with:

• Research-backed stock and mutual fund recommendations
• Capital Protection Approach for Long Term Wealth Creation

But hey, let’s first see how Phenology Reserve helps you solve the 3 major problems we discussed:

Reason 1: You don’t allocate assets wisely

According to a study by The Financial Analysts Journal, 91.5% of your portfolio returns come from asset allocation, and less than 7% is due to stock selection. Let us understand this with an example:

This shows that if a portfolio is generating a 20% return:

• 18.3% comes from correct asset allocation
• 1.7% from selection and market timing

Yet, most investors get stuck in a familiar pattern: Whenever surplus funds are available, they chase the latest trending stocks or invest in low-yield policies recommended by relatives.

The result: a portfolio that is either heavily exposed to equities and has little room for safety, or very safe without adequate wealth-creation opportunities.

How the Reserve allocates your investments:

It offers you a diversified investment plan with a mix of asset classes and sectors. It strikes the right balance between high-growth assets and secure tools backed with research and a security-first approach.

Reason 2: You are exposed to avoidable risks

If you are chasing winners, you may be investing at the extremes, and if you keep waiting for the right opportunity, you may miss the market boom. Either way, trying to time the correct entries and exits can ultimately lead to defeat.

According to a study by SmartAsset Financial Advisory Survey, 52% of financial advisors said the worst investing mistake they see among clients is timing the market. Long-term investing is much more effective than predicting market changes.

For example, if you had invested in Nifty 50 for any 7-year period since 1999, you could have had:

• 0% chance of loss
• 82% chance of earning more than 10% returns per year

According to SEBI, only 3% of mutual fund units remain invested for more than 5 years, while 71% are redeemed within only 2 years. Meaning, only a few investors remain invested and most try to exit the market with wrong calculations.

What preferences are reserved for you:

The Reserve prioritizes capital protection over short-term, risky bets through market timing and advocates a disciplined approach to investment through its diverse recommendations for long-term wealth creation.

Reason 3: You don’t have an investment thesis

Most investors lack a clear investment thesis and rationale for their investments. As a result, their portfolios are filled with stocks that are hot at the moment.

Without professional guidance, most investors choose attractive stocks rather than quality businesses. As a result, when the stock falls, they are unsure whether to hold the stock in hopes of a recovery or sell the stock and realize the loss.

Moreover, a large portion of investors hold on to their losses waiting for some miraculous bounce without strong fundamental logic. Know this: If a stock falls from 100 to 50, that is, 50%, it must rise by 50 to 100% to reach its original value. This highlights the importance of having a confident and clear strategy for maintaining investments during losses.

Where the reserves invest for your growth:

The Reserve follows a strategic investment thesis that provides research-backed recommendations on stocks, mutual funds and other quality assets at appropriate valuations. This helps you build a strong portfolio to invest confidently in changing market conditions.

conclusion

Managing your property yourself can be risky. One wrong step can set you back years. It can easily become overwhelming, especially when you’re juggling other important priorities in life. But here’s the good news: You don’t have to do it alone.

According to a report by Business Standard, about 77% of the 1,000 wealthy individual respondents trust professional wealth advisors, with UHNIs being the largest group seeking professional guidance.

You can do it too! All you need is the right guidance. Fill it out and appoint a Finology Reserve investment advisor nomination form,

Reserve’s risk-adverse approach prioritizes capital protection, focusing on risk-adjusted returns through a research-backed and diversified investment plan designed for you. Grow your wealth steadily without worrying about right and wrong, and let us make that money work for you.

Disclaimer: Investing in securities market is subject to market risks. Read all related documents carefully before investing. Registration granted by SEBI, membership of BASL (in case of IA) and certification from NISM does not in any way guarantee the performance of the intermediary or provide any assurance of returns to investors.