What’s your vehicle?

February 15, 2019

As you drive through a busy morning at peak hour traffic, you realize the despondency of the car driver. The traffic is choc-a–bloc and he is stopping every two feet, braking incessantly due to high traffic, pedestrians crossing, market place crowd etc. In times like these the car owner looks to the person in on a two-wheeler(motorbike) with envy. The bike rider seems to effortlessly manoeuvre through the traffic as a hot knife would in butter. He seems to swing and sway, making sense of the madness, to continue to forge ahead much more efficiently than a four-wheeler. This is the advantage with a MOTORBIKE as far as tackling peak hour city traffic is concerned. But let us say during the course of the day, the client is located 50 kms away and an urgent meeting is required or a relative in a nearby town is unwell and one needs to travel in a hurry, then the same MOTORBIKE becomes a disadvantage and the MOTORCAR becomes the vehicle of choice.

 

Same is the case with investments. Keeping money in the bank is like the motorbike. It is for short term and emergency needs. However, if one needs to look for long term then one must do his planning and invest in an option like Equity Mutual Funds, that can carry them far (MOTORCAR). Products like Equities & Equity Based Mutual Funds, as in the case of car in peak hour traffic, will appear frustrating and difficult at times, however, one needs to assess the distance he needs to travel and stay focused on the journey. While in the short term they may be volatile and appear unrewarding, they are the best wealth creating options for long term wealth creation.

 

So, the best bet is to keep a two-wheeler for short distance rides and a CAR for the family and long-distance travel. The same with investments. Your short-term needs can be held in the bank, but for your long-term needs plan ahead and invest in long term wealth creating options, knowing that they will sometimes be frustrating in short stretches.

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