Hi friends,
A lot of valuepickr readers are new to the markets and have never built or managed their own portfolios just yet. It is a different ballgame when you are investing every month through your salary v/s having capital lump sum and being able to see returns from the start and measure returns accordingly.
The biggest mindset that needs to change with this, is it will be difficult to see returns outright as your purchase frequency and building up of capital will skew your return ratio. Here the strategy and style with which you want to invest in becomes even more important. Being confident in the company/MF you will keep on accumulating matters even more as there will be times when you would be averaging up.
The first 3 years of building a portfolio will involve capital purchases of higher than 40% of your existing portfolio. This will suppress your overall returns for a while due to the volume of investing and building a case. But what happens over time, is even though your contribution goes higher, your capital infusion would end up being 15% of the overall portfolio, and the returns (provided your strategy worked) will show results.
So while building any portfolio is a patient affair, it is especially true in case of salaried capital.
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