Investing can be challenging, one will get lots of advice and suggestions regarding investments but it is the investor’s duty to differentiate what might be noise and what might be the voice, and between the chaos of noise vs voice it is important to make sound investment related decisions but having a long-term investment plan and staying disciplined can help you achieve better returns over time. Let’s take a look at how a “Smart Investor” differs from a “Disciplined Investor” in various scenarios:

The market is high:

– Smart Investor: “I’ll invest when the market falls.”

– Disciplined Investor: “Good, my existing units will appreciate – I’ll continue my SIP.”

The market is falling:

– Smart Investor: “I’ll invest when the market stabilizes.”

– Disciplined Investor: “Good, my SIP can buy more units – I’ll continue my SIP.”

US in recession:

– Smart Investor: “India will face headwinds – I’ll avoid investing.”

– Disciplined Investor: “My job is intact – I’ll continue my SIP.”

Election in 2024:

– Smart Investor: “The incumbent will face a challenge in re-electing – I’ll hold off on investing.”

– Disciplined Investor: “My job is intact – I’ll continue my SIP.”

Outcome:

– Smart Investor: “Noise is from outside.”

– Disciplined Investor: “Voice is from inside.”

As you can see, the Smart Investor tends to react to short-term events and tries to time the market, while the Disciplined Investor focuses on long-term goals and stays committed to a consistent investment plan. Remember, investing is a marathon, not a sprint. Stay disciplined, stay focused, and remain invested for the long term. Save your investment focus from the chaos of noise vs voice and make sound decisions. Your future self will thank you! 

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