By Admin 
Whenever it comes to investing in mutual funds, many people think that it should have an expert -like understanding or the help of a knowledgeable is necessary. But one of the most successful investors in the world, Warren Buffett thinks completely different from this.
He is 94 years old and he is the CEO of Berkshire Hathaway, yet his investment attitude is very simple, stay for a long time, be patient and ignore the noise of the market.
Even though Buffett himself has never invested in mutual funds, his thinking is equally useful for every investor today. If you are also thinking of creating a future through SIP, then these 5 learns of buffett can make your path easier.
Low -cost index funds are a sign of understanding
Warren Buffett believes that most of the big fund managers charge huge fees, but the profit does not actually reach investors. For this reason, they always recommend low-cost index funds, especially for small investors who cannot see daily markets. He has even said that after his death, 90 percent of his assets should be imposed in S&P 500 index funds, that too in cheap ones. In India too, low -cost index funds like Nifty and Sensex are available, which are capable of giving stable returns in a long time.
The right investment time
Buffett says, “Invest that you can keep without selling for 10 years.” That is, one should avoid the habit of changing the funds again and again. Mutual fund investment is a long -term journey – whether it is preparation for retirement, education of children or making property. Buffett’s advice is to choose a good fund, whether the market goes up or down – stay on it. Real property is formed over time.
Investment, not IQ, discipline matters
Buffett believes that there is no need to be genius to become good investors. He has said that success comes to those people who are able to keep themselves separate from the nervousness or enthusiasm of the crowd and stand on some basic principles. Mutual fund investors do not have to read the market daily or understand a corporate balance sheet. Just three things are required – patience, regular SIP and practical expectations. If you follow these three things, then you can get good benefit in a long time.
Do not look at the market every day, you will do harm
Buffett believes that keeping an eye on everyday movement of the stock market can be harmful to your investment. He has said that people often get scared and take wrong decisions due to the ups and downs of the market. He has a famous statement – “The market transfers money from impatient people to patients.” If mutual fund investors start watching NAV everyday, then they can hurry to shut down SIP or withdraw money. Buffett is advised, set SIP automatically, give at least 5-7 years and consider the fall as a chance, not the danger.
Invest when people are afraid
The most famous sentence of Buffett is, “When people are greedy, fear, and when people are afraid, be greedy.” That is, when the market declines and everyone is nervous, then the real investor seeks the opportunity. In such a time, it can be beneficial to continue SIP and invest additional if possible. History is witness that those who continued investing in the falling market, got excellent returns in a long time. There is a learning of buffett, investing wisely in an environment of fear is the real smartness.
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