#Investments #LookAtAllFactors  #MakingFinanceFun  #DontLetYourGuardDown 

We have started the Fun & Finance series with an aim to make finance more fun and relatable via short 1 min stories by using fables or interaction with customers etc. We will try our best to help you learn something new in finance via these short stories.

The Lion & The Gnat 

In a forest far away, a Lion was irritated by a bee. The Lion roared at the Bee “ go away you insect”, but the Gnat was not disturbed.

The Gnat said, “ do you think I’m afraid of you because everyone calls you the king?” And stung the Lion right on his nose. 

The lion and the gnat:

Mad with rage the Lion, struck fiercely but only succeeded in hurting himself.  Again and again, the Gnat stung the Lion. He attempted several times to get the Gnat but failed. 

Wounded with his own teeth and claws, the Lion gave up the fight. The Gnat buzzed away wanting to tell the whole world what he had accomplished. 

But instead, he flew right into a spider’s web. And there, who had defeated the King of beasts came to a miserable end. 

Pride from previous success should not throw us off our guard.

The above moral stands correct for our investments as well. Historical returns are not a guarantee of success. 

If you have had success in investing in the past, that should not throw you off your guard.

It is necessary to judge investments with other factors and not just past returns. Looking at investments through a single lens of historical returns will not lead to desired results. 

Don't judge asset class with past performance
Don’t judge asset class with past performance

We have an elaborate way of looking at investments that involve multiple aspects. For instance, while selecting Mutual Funds investments we look at the fund manager’s ability, rolling returns and other risk ratios. 

If you need help in selecting investments, you can contact us through email. We are happy to help.

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RefreshMint is a financial App, designed to simplify finances for the young Indians. With us, you get full control of your financial life. Get a free financial health check-up with RefreshMint today.

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