An Index fund has been an excellent option for your investment strategy. Instead of looking for individual companies, just buy a whole bunch of businesses that reflect the country's economy.
The psychology of the stock market volatility is difficult to endure. That's why my whole portfolio majority are mutual funds which contain around 50% obligations fund, 30% index fund, and 20% fixed income fund.
It is always in my head that preventing loss is more important than maximizing gain. That's why if you see my portfolio, it's like I'm playing it safe. I still learn to make asymmetric risk-gain like Tony Robbin's book called "Unshakeable" and "Money Master Game."
Also, you are most welcome to comment below your thought because sharing is caring, right? Maybe you can take your part in inspiring someone through this blog too.
Basically, to buy an index fund, I'm looking for the lowest expense ratio possible. As I read John Bogle's book called "the Little Book of Common Sense Investing." When you buy an index fund, well also proper diversify index fund, just keep averaging.
It's almost certain that an index fund will do pretty much well over time. Because as you can see, Indonesia's stock market is continually rising up after difficulties. Then if you follow the IHSG as a whole, you will do fine.
By sharing this, I'm not suggesting you not buying individual stocks. If you can do your analysis and control your emotions, you will gain much more than an index fund. But for your safe diversification, I suggest you consider adding an index fund to your portfolio.
If you find this blog inspires and helps you. Please share it with your friends if you don't mind. Inspire someone, be there for each other. Cheers
Comments