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Top 5 costly investment mistakes
Investment success stories seems like quick-fix
fairy stories that makes millionaires overnight.
But, it’s far from truth. Investment success
stories are built on discipline, patience,
research & strong fundamentals of the
nuances of investing.
Here, we bring you the top investment mistakes
you can end up making in the hurry to build
wealth quickly.
Investment success stories– Fairy tales or disciplined process?
Often, investment products are sold by
salesmen. These salesmen are mistaken
as Investment Experts.
By the time you realize the folly, the
“Expert” vanishes and you are left on
your own.
1. Mistaking the product salesman for an investment expert
2. Investments are done in lump sums
Risking your lump sum capital at one go might not
be a great idea because you might be assuming that
you can time the market well.
Regular Investments over a period of time
smoothens out market volatility. Starting SIPs are
a great way to ensure regular, disciplined
investments.
It’s always tempting to attempt to time the
market but it’s bound to be doomed,
almost every time.
Generally, in an effort to time, you miss
out on sharp recoveries & end up buying
at peaks and selling off in losses.
3. Timing the market
Decision-making is dominated by
fear. In an un-researched
investment decision, you might take
a call to buy in haste.
When the market goes down, you
might panic & repeat the same
mistake – Selling off in haste!
4. Fear driven investment decisions
After suffering losses, you might become
risk-averse and would want to withdraw to
a safe haven.
That’s another big folly.
You can surely do more with your money if
you knew what it takes to win!
5. Once bitten, twice shy!