Big announcement: Sobre and sensible

''Simplicity is a great virtue but it requires hard work to achieve it and education to appreciate it. And to make matters worse: complexity sells better."

That's a quote from Edsger W Dijkstra, a legendary computer scientist. Of course, Disjkstra was not talking about personal finance but his statement is just as true about saving and investing. When it comes to personal finance, the simplest strategies are often the most effective. The simple things are obvious. Consistently saving a portion of your income, investing steadily in a few carefully chosen funds, avoiding excessive debt are time-tested ways to build wealth over the long term. However, to a certain type of person, these simple ideas are not as appealing as complex investment schemes or 'get-rich-quick' promises that often tend to dominate the financial conversation.

We might think that we can be exposed to such ideas, even participate in them, and yet be able to invest sensibly. However, it does not happen. It's like someone going to a bar every day and pretending it's to meet new people and have great conversations or whatever. Yet the reality is that their main activity will be drinking. They might delude themselves with something else, but it's the stuff in the glass that will dominate their thoughts. In fact, Ernest Hemingway said it best, "It's not finishing the bottle that gets you in trouble; it's opening another one." Doesn't that remind you of the behaviour of derivative punters or crypto addicts?

To embrace simplicity in personal finance, individuals must commit to educating themselves about the fundamental principles of saving, investing, and money management. By understanding the value of compound interest, the importance of minimising fees, and the benefits of a long-term perspective, people can make informed decisions that align with their financial goals. Ultimately, the path to financial success is often paved with simple, time-tested strategies that may not be flashy but have proven to be effective over the years.

Mutual fund investing need not be complex, but savers need the right approach and the right tools. A long time ago, I wrote in this magazine, "Mutual fund investing is quite simple really. Identify some good funds that are suited to meeting your financial goals and invest regularly in them. Rebalance from time to time to maintain the portfolio structure. That's it. Lesson over."

While this is not quite possible, it's definitely a goal to work towards. Building a successful investment portfolio is not just about selecting the right mutual funds; it's a long-term process that requires ongoing attention and adjustment to ensure you stay on track to reach your financial goals. While choosing mutual funds may seem simple, especially with the help of resources like Value Research Online, the real challenge lies in maintaining and managing your portfolio over time. It's not a one-time task, but rather a continuous journey that demands regular monitoring and action.

This is broadly what Value Research has been doing for two and a half decades. We go beyond just presenting data and tools; instead, we create a milieu within which the right approach towards investing thrives. And now, we're ready for the next step.

Coming soon...

Value Research Online will get the biggest update in twenty-five years. We will enable full transaction capabilities for mutual funds as part of our new Value Research Fund Advisor service. I'll announce the details later, but Value Research members will get a big new roster of facilities and full transaction capabilities.

At the end of the day, our goal is to provide an environment that is opposite of the breathless social media hype about investing. That environment is like that gup-shup bar where people go and talk big things and then just get drunk. Ours is like a get together of like-minded, sensible friends who meet once in a while, exchange ideas and help each other succeed.

Going to a bar has its place in some people's lives, but investing is a different kind of activity.