Investment seems easy but mistakes are too.
You know investment. You know the tactics. But you fail somewhere. It’s maybe here.
Expecting just as others — You should not expect what everyone expects. Predictions are impossible when you invest in the market. Also, do not expect anyone to decide for you, for only you can think and deduce what would work and how it would.
Failing to diversify — Investment into single security could land you into a puddle. You need to properly diversify your portfolio to know your returns.
Not understanding the true performance of the investment — We have met many investors who seriously do not know how their investment is working. In fact, it is not just important to know how your portfolio works, you also need to know how it would tally with your track record.
Forgetting inflation exists — Our economy works differently where there may be a rise a day, and recession the next. So, you ought to focus on real returns than on nominal returns. Prices change even without inflation. Remember that.
Not checking facts and figures — Your funds might be managed by someone, so you got to know whether they are qualified enough to do so. Check on their work so that you do not miss out on anything.
Getting fooled by media — Media channels do provide you information 24/7 but it is not sure to be important to you. Do not keep up with the media tomfoolery.
Mistakes aren’t forbidden.
Author: Rajani Rajagopal