Dussehra marks the beginning of the festive season, but more importantly, it serves as your annual reminder of how goodness triumphed over evil. Celebrating different tales of good over evil, many people consider it as the time of year when you must evaluate your life and cleanse it of all evils.
While this can apply to relationships and habits that harm your health, it is a principle that is also applicable to your financial health. Use this occasion to evaluate your investments and ensure that you aren’t giving in to these money evils, whether it is fixed deposit you thought you would invest in but put off, or a mutual fund you want to exit from but haven’t yet.
Here are some essential investment mistakes you must avoid:
Not Giving Your Investments Enough Attention
Most of us are guilty of procrastinating, but when it comes to making investments, this attitude can be terribly harmful. By putting off making investments, whether it is in stocks, bonds or fixed deposits, you are depriving your money of growth and restricting multiplication of wealth.
Start as soon as you can and treat it like a priority. Just as you make it a point to clear your utility bills before the deadline, make sure you divert a portion of your salary towards investments too.
Not Reading The Fine Print
When you invest in any instrument, be it a secure fixed deposit or a mutual fund, reading the fine print is essential. You have to sign a document saying you accept the terms and conditions and are legally bound by it.
This means that later you can’t go against the policy terms. So, make it a point to read through the policy and clarify any queries that you may have.
Not Doing Adequate Research Beforehand
Before you invest, use the tools that are at your disposal to calculate the returns that the investment option is likely to give you. This will help you make a smarter investment decision.
For instance, if you’re investing in a Bajaj Finance Fixed Deposit, use the FD calculator to forecast what your returns will be. By entering just, the amount you plan to invest and the tenor along with the type of FD interest rate, you can see exactly how much you stand to gain. Accordingly, you will be able to judge if you need to increase the investment amount or tenor.
Relying On Word Of Mouth Advice
It’s tempting to invest in an instrument based solely on the opinion of a friend who has earned substantial returns. But, when it comes to your own finances, seek advice only from the best financial experts.
What worked for your friend or relative may not work for you because:
- Your goals are sure to be different
- The amount invested and tenor of investment may vary
- If market performance plays a role in the instrument’s returns, the timing of the investment has to be just right
It is hence, more important to take the right steps and get professional help in terms of investment advice.
Making decisions hastily
When it comes to personal finances, especially your investments, don’t be hasty. Even if you feel that you must act immediately, take your time to weigh all the pros and cons before you do so.
Setting your emotions aside when making investment decisions is a sound way to go about the process. This will ensure that you don’t make mistakes that will cost you because of panic, greed or anger.
So, look at your investments with a fresh approach this Dussehra. By keeping these tips in mind, you can ensure that your finances grow and prosper!