Rules of a Smart Fund Manager Part 3: Think Big Picture

Based on our blog ‘7 Rules Of A Smart Fund Manager (That Everyone Should Follow)’, we’re running a week long series spending a little more time with each rule, so you can easily digest each and every tidbit! #SharingIsCaring

When looking at the performance of an individual investment, fund managers always keep in mind where it fits into their overall plan. They don’t get carried away with the performance of a single asset, whether it’s scaling new heights (yay!), diving to unexplored depths (yikes!), or even barely moving the needle (meh). They will compare reality with their expectations, and make a well-thought out decision about whether to change their execution strategy.

Your net worth comprises of all the financial assets you own. It includes your income stream (whether salary, business, rental or interest income), savings/FDs with your bank, money-back insurance policies, real estate, investments in stocks/mutual funds etc.

You chose to invest your money in different things for different reasons (or worse, you did so without having solid reasons). Your worry about each individual item should be proportional to why you chose it, and how much of your net worth it represents.

Stocks will rise and fall,and rise again. Real estate prices will do the same. You may be unhappy with savings or FD returns. But you must not let emotions and short-term fluctuations influence your long-term outlook.

3 Think Big Picture