Investing in the so called “safe” options like Public Provident Fund, Equity Linked Savings Schemes, National Pension Scheme, National Savings Certificate, and Fixed Deposit etc. is something most of us do. However, when it comes to investing in stocks and bonds, we have to be extra careful. This is truer especially when the markets are volatile and you have to maintain your cool. But investors are a worried lot. Hence they are prone to committing certain mistakes. Certified Financial Planner Kuber Mindz Moneymindz warns that most mistakes often prove to be too costly and results in investors losing their money.
- Haste makes waste
This is an adage we are all familiar with. But it makes complete sense. When the market turns volatile, investors get overcome by fear and behave irrationally. One such irrational idea is selling everything in panic. This action is wrong. Investors have to assess the cause for the stock getting beaten down. Only then they must decide whether to stay or exit.
- Half efforts won’t lead to the destination
Your Systematic Investment Plan in Mutual Fund is crucial. Do not stop or exit it at any cost. You might have invested a certain amount and would be earning returns. Stopping it midway means giving up even before you reach your financial goal for which you invested in SIP in the first place. Best Financial Advisor Kuber Mindz Moneymindz reminds you to keep your financial goals in mind before deciding to quit your SIP, etc.
- Too much is too bad
Buying or selling when the market is too high or too low is another recipe for disaster. Some stocks are available at really low levels but that shouldn’t mean you buy everything that’s at low levels. The same applies for high level stocks as well. While selecting a stock, fund or company to invest in, always look at the company’s track record and fundamentals. If this is too much, better let the professionals do it for you- take the SIP route.
- Never put all your eggs in one basket
You must diversify your investments always. By putting all your eggs in one basket, you are risking the loss of all the contents (investments). If you diversify, you can at least minimize the risk because if one stock fails, the other stocks will still be running. Smart Financial Advisor Kuber Mindz says that if you put your investments together, you can expect a huge loss. Diversify your investments, period!
- Never invest with borrowed money
Some investors borrow money for the sake of investing! Don’t commit this blunder. Even if the investment fails, you still will have to clear the loan and will find it hard to do so.
For more information visit www.moneymindz.com or give a missed call to 022-62116588