It is common for investors to grapple with various investment options. So it's not surprising that at any point of time, their 'to do' list usually has at least half a dozen investment options spanning across various assets. As if investing isn't enough, they also have to make elaborate arrangments to track their investments, take revised decisions (in case investment aren't workingout as expected) and re-allocate assets (in case allocations have deviated sharply from orignal levels). If it looks like investing is full-time activity, then you are right, it is.
Your next question probably is -if investing is full-time activity, how dose one balance his work (which is also full-time) with investing?
The answer to this question is simple. Between the two (work and inveting), focus on doing what you are good at and give up the other option in favour of someone who is adept at handlng hat responsbality. In industrial parlance this is referred to as division of labour, where each team does what is best suited to its own skill set and temperment. Since most investors have limited skills in managing investments/finance, it's an easy choice to make for them about what they want to continue doing and what they want to give up.
Within the domain of investments, two options that investorsregularly grapple with are Stocks. (that is direct equity investing) and Mutual Funds. Both have their advantage, although this note does not get in to that debate. Instead, in light of present discussion about investing being a full-time activity.
let's see how stocks and mutual funds face off against one another in my next post. So visit regularly my blog so we can discuse more.
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