4 Common Mistakes of Investing

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 #4 Common mistakes of Investing

description

What are most important things to watch before investing. There are 4 major components one need to watch out for before taking any investing decision.

Transcript of 4 Common Mistakes of Investing

  • #4 Common mistakes of Investing

  • I face these challenges

    Knowledge

    Market is too volatile

    Too Many Products

    Less Time

    Hidden Charges

    Too much Information

  • So What Should I do ?

  • # 1 Habit

    Trading VS Investing

    What I Do !

    I Trade in shares for short term returns,which leads to more losses than profits.

    I look for short term Tips on which I canmake money

    If the share price falls due to negativechanges in company fundamentals, Iwould not book losses

    What should I do !

    I should invest in shares for a longTerm( Sensex has delivered 11.9%CAGR in past 5 years*)

    I should invest in companies with a goodtrack record and recommended by BestInvestment Gurus.

    * Return as on 26 June 2015. Source AdviseSure Research

  • # 2 Habit

    Non-Diversification

    What I Do !

    When I get a news, I normally invest most

    of my money in one single share

    Normally I invest only in Fixed Depositand have no investment in any otherproduct, although I am not happy with thereturns

    What should I do !

    I should ideally invest my money in Bunch

    of shares and not in one single share

    I should invest in Multiple productssuch as shares, mutual funds, bonds, goldETFs

  • # 4 Habit

    Tax In-Efficient Investing

    What should I do !

    I can do tax efficient investing which willincrease my overall returns by-

    Investing in products with tax freereturns. Or

    Investing in products which gives taxdeductions

    What I Do !

    I dont check tax implications beforeInvesting in any product.

    The returns earned are not enough to

    offset my tax liabilities

  • # 5 Habit

    Brokerage Charges

    What should I do!

    You can take service of Brokers with Rs20 per trade brokerage and savecharges

    I can save all commissions on Mutualfund with Offline Mutual fund transaction

    What I Do!

    I pay 0.3% brokerage to my broker onthe trade Amount

    I dont consider the Commission madeby Agent on Mutual funds

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