Mrs. Anita is a confident middle aged, middle class independent woman. She has been investing in various savings and investment schemes, since 10 years or so. She is a passionate learner and keeps reading about what’s new and how she can maximize her portfolio value. In spite of doing all the research and reading a number of articles, she has a hollow feeling or a feeling of being left out when she looks at her total portfolio. She finds it difficult to make decisions related to her investments as there are so many things that she has read that she gets perplexed about the outcome of her decisions. A lot of information is available about what is to be ‘LEARNT’, but there are a lot of things that we must ‘UNLEARN‘. Its time we metamorphose from being a ‘CONFUSED INVESTOR’ TO AN ‘INTELLIGENT INVESTOR’. Here are 11 common mistakes that we do as confused investors, and these mistakes need correction. Check if some of these are applicable to you.. If new information is available, you have the urge of acting on it immediately. You tell yourself, “I shall wait until I have more money to invest.” Paying the “minimum” on your credit card balance. You think about the returns that your portfolio will provide, but not the risks that you are supposed to bear in order to get those returns. Buying investment products that are sold to you, and not what’s actually required to reach your goals. Not Understanding all risks that you might face (like life, health, crictical illness, professional indemnity) and having inadequate cover. Taking personal loans for short term cash requirements, and accumulating debt, by thinking that one day, you will be loan free. If you buy a stock and the price falls, its always better to average it at lower levels. You think that Direct equity = gambling. You feel that only debt products like FDs, bonds, etc., are good for you, even for your long term investments. You think that you are too old to get financial education, plus you don’t trust financial advisors. You feel that they look at their own benefits. If you have any of the above misconceptions, then, its time to unlearn what’s wrong, and learn what’s right. At HappyWise we have seen huge gains and lesser pitfalls in portfolios with a change of perspective. If you have any of the above misconceptions, then, its time to unlearn, and relearn what’s beneficial. Author: Mr. Nirmal M Jain | Mr. Nirmal M Jain is a Co-Founder at HappyWise Financial Services. He has over 15 years of experience in the Financial Planning Sector. He has been a mentor to several people, and has helped them to understand investments, stocks, mutual funds, financial planning, personal finance and above all his favorite term “The Power Of Compounding!”. Post navigation Khushi and Joy, Episode 5: “The Festival of Money” Are Derivative Options an option for retail investors?
