Discipline is often defined as the ability to give up immediate pleasures for long-term goals. While Habit is defined as a regular tendency or practice.
Does one need to have discipline to stick to a habit? Or does one need to have good habits that ensure discipline. Regardless of the answer that they are sides of the same coin.
Discipline without a habit is meaningless and fleeting.
A well-known habit-building framework outlined by author Charles Duhigg in his book, The Power of Habit, is made up of three stages: cue, routine, reward.
The book goes on to describe how identifying the routine i.e. the response to the cue is important in your journey to forming good habits.
In the investing world the Cue is a market movement -upwards or downwards. If a proper routine isn’t set to this cue one can often see portfolios see-saw both extremes.
Introducing the Union Multicap Fund – a fund with the disciplined allocation approach of a minimum 25% across large, mid and small market capitalisations. It has the discipline of maximum limits across each market cap category which ensures that the routine of rebalancing sets in to external cues. Just so that the reward is more favourable and less prone to individual judgments.
It is ideal for customers who want to benefit across market cap categories with reduced volatility.
NFO starts today and ends December 12, 2022.
While it does look good for India over the longer term it is our short-term actions that determine the outcome over the longer term.
Partner with Union Mutual Fund in this exciting journey of long-term equity investing through this NFO.