Happiness happens when the results you get is far better than the results you expected. Therefore when a person invests Rs. 1000 in the equity market and in one month it goes to say Rs. 1100 he is very happy.
However if he does a SIP of Rs. 1000 in a mutual fund and it becomes Rs. 14,000 at the end of the year, he is not very happy. He put in Rs. 12,000 (well that is what he thinks if he does not understand PV and FV) – and that has become ONLY 14,000 over one year.
This of course is innumeracy of not being able to calculate the IRR – and not just lack of happiness.
So mathematically speaking
Happiness = Results – Expectation…. now in case you agree, we go to the next?
So why is gen next not happy or satisfied with what they get? Simply because their Expectation is far, far greater than the realities….so read on
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