You sit down,ready to be entertained. You log in and start browsing. Nothing looks great. You watch a few trailers and 10 minutes pass. You feel this building pressure to pick thebestshow to maximise your entertainment. Eventually,you start feeling frustrated. You just wanted to watch good TV. Why is that so hard?
Honestly,that’s not too different from how it can feel when you first start investing.
When you’re presented with a range of different investment options,it can quickly become overwhelming.istock
Endless options. Every finance guru is promoting a different asset class. Robert Kiyosaki says real estate is the best asset class. Warren Buffett made his billions in stocks. But dad says the. Meanwhile,that dude on the internet says money is dead,crypto is the future.
All these options are meant to offer choice. Isn’t that what we want? The freedom to choose? So,how come we just end up stressed and overwhelmed? How do you make sense of it all?
Here’s what I wish someone had told me years ago.
It doesn’t have to be the best on paper. It just has to be the right fit for you.
There’s no such thing as the best investment. There’s only the right strategy based on your personal needs,goals and preferences. If you focus on the needs of the investor first,the most appropriate strategy will naturally reveal itself.
This is because the right investment strategy for you isn’t just about returns. Returns are not even the most important consideration when selecting an investment strategy.
If you only looked at returns,some might argue that (exchange traded funds). You can renovate property to appreciate its value,and you can find undervalued properties. There’s not much you can do to increase the value of an ETF.
But what if you hate dealing with plumbing problems,the idea of renovating makes your skin crawl,and you don’t want to deal with agents and brokers?
If you only looked at returns,some might argue that buying your own ETFs via a broker is superior to investing through a robo-advisor since you will save money on fees.
But what if you hate thinking about how to rebalance your portfolio,and no matter how much you educate yourself about investing,you still lose sleep at night when the market dips?
In both these examples,if you had bought into the “best investment” on paper,you may have bought into a strategy and product that was unsustainable for you long-term. This increases the risk of making emotional financial decisions,like selling in a panic when the market drops.
You,the investor,play a big role in how your investment portfolio ends up performing. Contrary to what most think,portfolios don’t just bloom on their own once you buy a few investments.
Howyou invest,the decisionsyou make,yourability to tolerate market movements,yourcapacity to take risks,all have a big impact on how your portfolio performs.
This is why it’s vitally important to create an investment strategy and buy investments that align with your personal goals,needs and preferences. Here are some factors to consider:
Getting clear on these questions will help you develop your own personal investment criteria. So,instead of endlessly browsing opportunities,paralysed with indecision,you’ll have clear criteria to help you quickly eliminate options that aren’t a good fit and identify the ones that are.
Ultimately,having a strategy and portfolio that aligns with your personal goals and needsis the best approach for maximising the value of your investment portfolio. It doesn’t have to be the best on paper. It just has to be the right fit foryou.
Paridhi Jain is the founder of,which helps adults learn to manage,save and invest their money through financial education courses and classes.
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