There are many investors who feel that the ‘Do It Yourself ’ (DIY) kind of process helps them to avoid the fees and charges of a financial adviser. Indeed, from the cost point of view, DIY seems to be a prudent strategy. However, is it just the cost that you should focus on or should you also dive deep to understand the things that you get for that cost? And these days, thanks to robo advisors, DIY investing is catching the fancy among many investors. Initially, this was adopted mostly by tech-savvy IT professionals but is now being followed by many. Yes, it does feel nice when you have total control over your investments. And though DIY investing is not a new phenomenon, it has gained a lot of traction recently.
DIY: Wise or Unwise?
It is indeed good if you can save money without compromising on your investment experience. Saving on fees that you need to pay to the adviser is one thing and better investment experience is another thing. In this article, we will try to find out whether or not DIY investing is a prudent way of investing for the layman. Honestly, managing your mutual fund investments is not rocket science. Adopting a few of the time-tested rules, understanding your financial goals, disciplined investing, and having control over your emotions are some of the characteristics that a DIY investor should possess. However, for some or the other reason, most of them seem to mess up their investments. Though anyone can be a DIY investor, history shows that not everyone succeeds.
This story is from the September 14, 2020 edition of Dalal Street Investment Journal.
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This story is from the September 14, 2020 edition of Dalal Street Investment Journal.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
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