10

INVESTING MISTAKES
1
Reacting to Short-term
returns
People often sell underperforming funds
and buy high performers, unknowingly
buying high, selling low. Short-term returns

2
are just noise worth ignoring.

Not Diversifying Properly

It risks losses in market downturns.
Diversify between equity, debt,
foreign equity, styles, and gold etc. to
ensure stability and build your core.
3
Failing to Create an
Investment Plan
Outlining your goals and strategies
eases decision-making and reduces
stress, helping in achieving goals.

4
Failing to Write Down your
Reasons for Buying & Selling
Write down why you own each
investment and why you might sell.
This record helps guide future
decisions, especially during doubts.
 5
Not Saving Enough
Start saving early in your 20s and
encourage friends and relatives to do
the same. Without early saving, you
risk financial difficulties later.

6 Failing to Rebalance
When the markets really move, your
portfolio can become unbalanced,
disrupting your nicely laid plan.
Regularly rebalance to keep it on track.
7
Failing to Factor TAXES
into Portfolio
Ignoring taxes in portfolio decisions can
hinder long-term success. Consider taxes
when planning your financial goals.

8
Not Building up Sufficient
Money Market Position
Keep six to 12 months' living expenses in an
emergency fund for emergencies like job
loss or unexpected repairs, reducing stress
on your goals during market downturns.
9 Worrying About Daily
Ups & Downs
Don't worry about daily market
fluctuations; they're not relevant to long-
term goals. Buy stocks or funds you

10
believe in and ignore short-term noise.

Complexing Things
Investing doesn't have to be
complex. Keep your investment
strategy simple and easy to manage.
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