Here are eight investment truths hours and hours of number crunching and data analysis have taught me. I have always believed that mathematics is the language of nature and that a truly open-minded analyst has a chance of appreciating the “truth” or even attaining nirvana!1. There is no evidence that long term investing is guaranteed to work. Most equity investors have only hope and past performance to rely on when questioned about why they wish to invest for the long term.Sadly there are no guarantees with life, marriage, parenting, career etc., and the same applies to investing. However, there is a reasonable chance that equity investing will beat inflation (not your expected return!). Therefore risk management is key!See: Why should I invest in equity mutual funds when there is no guarantee of returns? And Equity may beat inflation, but that doesn’t mean you will!2. No strategy will work all the time! Be it time in the market or timing the market, SIP, tactical asset allocation, stock investing, etc. Nothing will work all the time. One person’s experience cannot/should not motivate others to invest or not invest. This is also known as the sequence of returns risk.If someone says they have a method that has always worked in the past, it just means that they have either not looked properly or the data is not long enough for cyclic behaviour to set in.3 Everyone is waiting for that bumper stock market return, and therefore, everyone is timing the market (even those who do a SIP) just that the industry wants you to do the timing while being in the market and count notional gains/losses while they count real gains.4 SIP is not systematic investing. SIP is an automated purchase of mf units on the same day of each month. Investing with a system is systematic investing, and this includes risk management. SIPs do not reduce investment risk. No matter how long you do a SIP, the performance will be poor if the market is down on the day of redemption or return calculation.5 Once you recognise that it is hard to beat the index, most things about investing seem fluff and unnecessary. However, it is merely a choice, and there are bigger things to worry about.6 You cannot expect a set return from any mutual fund or stock. We need to adapt if things do not go our way. 7 There is no optimum asset allocation, a mix of funds/stocks or strategy. There are thousands of ways to reach our financial goals. There is no way of knowing which will work and which will not work beforehand. We have to choose a path and change course if required.8 Unwavering discipline is the only superpower needed to get rich. Not intelligence, smartness, or a lot of money but just discipline. Unwavering discipline.I am much closer to investing nirvana today than before I started crunching numbers … with an open mind.Do share this article with your friends using the buttons below. 🔥Enjoy massive discounts on our courses, robo-advisory tool and exclusive investor circle! 🔥& join our community of 5000+ users! Use our Robo-advisory Tool for a start-to-finish financial plan! ⇐ More than 1000 investors and advisors use this! New Tool! => Track your mutual funds and stocks investments with this Google Sheet!Follow Freefincal on Google NewsSubscribe to the freefincal Youtube Channel. Podcast: Let’s Get RICH With PATTU! Every single Indian CAN grow their wealth! Listen to the Let’s Get Rich with Pattu Podcast You can watch podcast episodes on the OfSpin Media Friends YouTube Channel.Lets Get RICH With PATTU podcast on YouTubeDo you have a comment about the above article? Reach out to us on Twitter: @freefincal or @pattufreefincalHave a question? Subscribe to our newsletter with the form below.Hit ‘reply’ to any email from us! We do not offer personalized investment advice. We can write a detailed article without mentioning your name if you have a generic question. Join over 32,000 readers and get free money management solutions delivered to your mailbox! Subscribe to get posts via email! Explore the site! Search among our 2000+ articles for information and insight!About The Author Dr M. Pattabiraman(PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. He has over ten years of experience publishing news analysis, research and financial product development. Connect with him via Twitter or Linkedin, or YouTube. Pattabiraman has co-authored three print books: (1) You can be rich too with goal-based investing (CNBC TV18) for DIY investors. (2) Gamechanger for young earners. (3) Chinchu Gets a Superpower! for kids. He has also written seven other free e-books on various money management topics. He is a patron and co-founder of “Fee-only India,” an organisation promoting unbiased, commission-free investment advice. Our flagship course! Learn to manage your portfolio like a pro to achieve your goals regardless of market conditions! ⇐ More than 3000 investors and advisors are part of our exclusive community! Get clarity on how to plan for your goals and achieve the necessary corpus no matter what the market condition is!! Watch the first lecture for free! One-time payment! No recurring fees! Life-long access to videos! Reduce fear, uncertainty and doubt while investing! Learn how to plan for your goals before and after retirement with confidence. Our new course! Increase your income by getting people to pay for your skills! ⇐ More than 700 salaried employees, entrepreneurs and financial advisors are part of our exclusive community! Learn how to get people to pay for your skills! Whether you are a professional or small business owner who wants more clients via online visibility or a salaried person wanting a side income or passive income, we will show you how to achieve this by showcasing your skills and building a community that trusts you and pays you! (watch 1st lecture for free). One-time payment! No recurring fees! Life-long access to videos! Our new book for kids: “Chinchu gets a superpower!” is now available!Both boy and girl version covers of Chinchu gets a superpower. Most investor problems can be traced to a lack of informed decision-making. We have all made bad decisions and money mistakes when we started earning and spent years undoing these mistakes. Why should our children go through the same pain? What is this book about? As parents, what would it be if we had to groom one ability in our children that is key not only to money management and investing but to any aspect of life? My answer: Sound Decision Making. So in this book, we meet Chinchu, who is about to turn 10. What he wants for his birthday and how his parents plan for it and teach him several key ideas of decision-making and money management is the narrative. What readers say!Feedback from a young reader after reading Chinchu gets a Superpower!Must-read book even for adults! This is something that every parent should teach their kids right from their young age. The importance of money management and decision making based on their wants and needs. Very nicely written in simple terms. – Arun. Buy the book: Chinchu gets a superpower for your child! How to profit from content writing: Our new ebook is for those interested in getting side income via content writing. It is available at a 50% discount for Rs. 500 only! Want to check if the market is overvalued or undervalued? Use our market valuation tool (it will work with any index!), or you buy the new Tactical Buy/Sell timing tool! 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