Avoid these investment mistakes | Fusion - WeRIndia

Avoid these investment mistakes

Avoid these investment mistakes

Often investors are not aware of some things while investing in the market. As a result, they may lose their money rather than gaining.

2018 has been a volatile year and investors had negative consequences due to it. In order to avoid negative effects, you have to take utmost care while investing your money.

Though investments are volatile to the degree of markets, certain mistakes are to be avoided.

Here are the investment mistakes to be avoided:

As general elections are ahead, wait for election results to invest in the market. Elections can affect the citizens in many ways. Moreover, a stable government is essential for economic growth. The election results may affect the market in the short-term and the investments can be volatile. Hence, wait till the election result to invest.

Do not have too much optimistic or pessimistic view about the economic future of India. India is a large country. Hence, the economic progress may either be fast or slow. Unlike China where dictatorship is prevalent for drastic economic progress, India has economic progress which is measured in terms. Also note that being a large country, sudden collapse may not happen in India. So, any extreme sentiment that can be seen might just be a temporary phenomenon in the capital markets.

Don’t get impacted too much by the global forecasts or news. Since India is a big economy, the impact of global economic view is marginal. Moreover, it is a largely domestic demand-driven economy and so it is less impacted by global economic developments.

Do not deviate from asset allocations. Though it is a general rule, it is also good for 2019. Always adhere to your asset allocation and do not change it unless you observe major milestones.

Don’t focus on saving advisory fees while ignoring the quality of advice. Remember that good advice will never come without a cost and if you want to succeed in the financial markets you need good guidance. Hence, first focus on the quality and reliability of the advice, and the cost for that should be the last criterion.

Image Credit: Jernej Furman / CC BY 2.0

Image Reference: https://www.flickr.com/photos/91261194@N06/49739337621

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