Confused about where to invest – Walk with the wise crowd

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If you are puzzled by the numerous investment options laid in front; it is better to follow the herd. Follow the wise crowd.

We like to believe that we think differently. However, the fact remains, it is human to feel safer when you are a part of the bigger force. Herd mentality, in other words, following the crowd, though considered detrimental and not at all elegant; inside us, we all follow it when we are in a state of confusion.

Imagine a scenario. You are out for shopping on a bright sunny day. There are two stores in front of you. You can see there is a bigger and happier crowd inside one of them; being served by a friendly staff. On the other hand, the other store has sparsely any buyers inside. Most of us would enter the former shop as it already displays a better track record.

That is the exact situation when you are out in the marketplace looking for an investment option. However, one big difference is, there the number of stores is not limited to two.

When do you choose to walk with the Wise Crowd?

 

 Scrutinizing each investment option is exceptionally mind-numbing

Before deciding on an investment option, you are supposed to go through reading and studying a plethora of documents, statistics, and graphs. Now, that does not come handy. It requires a lot of patience and mathematics. Besides, if for someone reason, you are not able to do your study to the satisfaction; there is a space that is easily gobbled by a small monster – Doubt. That sums up to, all the number of hours you spent while dissecting a certain investment option go in vain. Above all, who wouldn’t agree that this whole process of investigation is not a fun job.

They are so many choices

There is another scarier fact. You will need to examine numerous investment options before you finally are able to spot the ultimate one. Chances are, the whole expedition goes null. The process of short-listing a couple of investment choices and then further boiling it down to find out the most rational opportunities is cumbersome, confusing, and utterly time-taking.

Working individuals already have less time for other things

Usually, crowd funders are working individuals with 9 to 6 jobs, or else, self-employed professionals who have other chores to do. They are neither some serial backers nor professional investors. They do not have enough time or the expertise to go through the whole drill of finding the best out of the lot. They just have some extra money in their pockets which they think would be best used when invested well.

If the crowd is really wise  

Before you pick up on a particular campaign and decide to walk with the wise crowd, here is a quick checklist for you:

  • If the initial investors do have a decent investment experience and required expertise in the field.
  • If the initial investors are from the kin and kith of the campaigners (They better be genuine investors, who do have faith in the project)
  • If you have at the least, the basic understanding of the industry and business you are investing in.
  • If you have a few more acquaintances, friends, or family with experience in investing, who echo/approve your decision.

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This article is written by the Crowdfunders Editorial Team. In Asia, Crowdfunders.Asia is a leading portal on providing news related to crowdfunding, start-up, property and business. It is operated byCoAssets.com. CoAssets is South East Asia’s first listed and largest real estate crowdfunding platform. If you have any Crowdfunding news or stories to share, please [email protected]

 

 

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