Investing is Easy, not Investment!

Investing in Mutual Funds has become more convenient with the availability of online platforms that allow you to invest with just a few clicks. However, just because the process of investing has become easier, it doesn't mean that journey of investment itself is easy.

While investing can be easy, choosing the right investment requires a certain level of knowledge, skill, and effort. It's not something that can be done haphazardly, it requires a well thought out plan and consistent monitoring and rebalancing to ensure that you are on track to achieving your financial goals.

For most people, the Do It Yourself (DIY) approach may not be practical due to lack of time or expertise. Analogy that can be used to explain the challenges of DIY investment is that of cooking. Ever tasted Undhiyu? It's a Gujarati mixed vegetable dish, one of my favourite. Cooking a traditional dish like Undhiyu can be a challenging task, even if you have the recipe and the right ingredients. Undhiyu is a complex dish that requires a certain level of skill, experience, and understanding of the flavors and techniques involved in order to prepare it to perfection. Similarly, investment can be a complex task, even if you have the information and tools to do it. Just like how a recipe for Undhiyu does not guarantee a great dish, having access to information and online platforms does not guarantee success in your investment.

Even if you know the recipe for Undhiyu and have all the ingredients, it may not turn out as good as grandmother's because it takes years of experience, understanding of the flavors, and fine-tuning the recipe to achieve that perfect taste. Similarly, a good investment requires experience and understanding of the market, and ongoing research and analysis to make informed decisions and achieve your financial goals.

Also, in the context of investing, the influence of social media and influencers can be a double-edged sword. On one hand, social media platforms and online communities can provide a wealth of information and resources for investors looking to learn more about mutual funds and make informed investment decisions. However, on the other hand, the sheer volume of information available on social media, combined with the influence of so-called "gurus" and influencers, can also be overwhelming and confusing for investors.

One negative aspect of social media and influencers in the context of investing is that it can lead to the spread of misinformation and hype. Social media is full of self-proclaimed experts and influencers who may not have the qualifications or experience to provide accurate and reliable information about Investing. As a result, investors may be misled by false promises or exaggerated claims and make decisions based on incomplete or inaccurate information.

Another negative aspect is the pressure to follow the crowd and invest in funds that are popular on social media, without fully understanding the risks and rewards associated with the funds. Social media can create the illusion that certain funds are performing well, while they may not be suitable for your financial goals and risk tolerance.

In conclusion, investing has become more convenient with online platforms, but the process of managing investments to achieve financial goals requires knowledge, skill, and effort. The DIY approach may not be practical for most people due to lack of time or expertise. It's recommended to consult with a professional before making any investment decisions, and keep in mind that investing requires ongoing research and analysis to make informed decisions and achieve your financial goals. It's important to be aware of the potential pitfalls of social media and influencers when it comes to investing, and to be cautious when making decisions based on information from these sources.