What and how a child can teach you investing. Through a simple real life situation of correlation of a baby and SIP (systematic investment plan).
1. Can we expect baby to run after his birth?
Then why do we expect our newly started SIP should run.
2. How many times baby has fallen ill between 0 – 5 years?
Then why do we get afraid from negative returns of SIP between 0-5 years
3. When baby cries mom feeds him.
When SIP cries (Sensex down 20%), why don’t we invest more.
4. When baby create noise wake up in mid night do we become impatient ?
NO, we deal him patiently and focus on baby care rather than his noise.
But when negative news create noise in market then why do we become impatient and take irrational investment decision.
We must give time & care to grow our baby and SIP investment too.
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