Here are 5 pitfalls to avoid and make your investing experience efficient
NOT HAVING ANY PLAN
When you start working, the focus is on spending more than saving or investing. Actually, you must spend whatever is left after investing. Typically, people invest only when you have some investible surplus. However, you must draw a plan with a Financial Advisor sooner than later.
FOLLOWING SOMEONE ELSE
You hear a friend discuss losses or gains in Mutual Funds (). You tend to follow their steps and actions of buying or selling similar schemes without really understanding your investment needs or goals. It is important to follow your own plan and not others.
While investing in any asset class through , you must let it grow. Invest only when you are willing to leave it untouched. Avoid a short-term outlook for MF investments.
NOT CHANGING WITH TIME
If you have set your target for a corpus or a goal, you must take your money out as soon as you meet it. This is irrespective of the state of the market. A review of the portfolio is necessary to align your MF investments with your new objectives or goals.
TOO MUCH INFORMATION
You watch television or read pink papers to gather information on investing. It is a good idea to listen to everyone. However, at times, too much information can be confusing. You are better off finding a good Financial Planner. You must discuss your ideas and reason with them.
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Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
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email@example.com and/or visit www.scores.gov.in (SEBI SCORES portal). This material is part of Investor Education and awareness
initiative of UTI Mutual Fund.