Investing requires patience and a long-term approach. However, a large number of investors do not seem to have the same experience. The reason for this: investors get swayed by market cycles and near-term market performance while making investment decisions. Apart from market timing, investors also exhibit a cycle of performance chasing – i.e. switching between funds on the basis of near-term performance. This behaviour is value destructive and often results in sub-optimal returns over the entire investment period.