8 Different Mistakes Done in Investment Options.
We all may invest in different investment options to earn profit for the capital invested. It is the common idea for an common man in this world and we too eagerly wait to earn more than multiple times of profit more than basic bank interest. But we interestingly invest in some investment option but we fail to take profits at right time and we do not find it. Successful investor have an special secrets to see profit from his investment and all its simple. As its very simple, commonly people forget to follow it. If really people corrent those below given Eight different mistakes surely investor can enjoy profits without any doubts.
1.When to Exit from an Investment?
We all know to invest but don’t know to exit at right time, it is the majority of the people do. Simply they invest as per guided by somebody and they leave without any maintaining and giving attention to their investments. Many of the people invest in stock market in delivery basis and if goes below their buying level people donot show much interest as they think wasting time by watching and giving attention is totally useless. It is not like that, but always we need to fix the target and our ultimate aim to reach the result in all possible ways. If our expectation completes at any time we should immediately exit from that investment.
If we planned an investment for our child to have an bigger amount at the age of 17 to join his/her in college then we need to start investing in mutual funds in SIP mode after the expectation of our work get done we need to exit whatever the profit at that time.
2.Give way for Emergency Fund in family
In our daily life many people forgets about this and many of them are in a tight position to handle their family with earned income which is not even enough sometimes when the unexpected situation arises. In this investment era we do not success without emergency fund. Many of the people not even would heard this term, it is nothing but if we need Rs. 10000 for every month expense, we should have an back up of Rs.50000 at any time which can be used for an emergency situation, if it is ready then we can boldly get into any investment at any time, if not we are in a trouble to handle that critical situation by borrowing somewhere and getting debt to somebody in some way.
3.Which is the best Investment in Gold, Stock market or Real Estate ?
Many people commonly asks everyone and they are dilemma till their life time. But this is not right question, whichever the investment done by us should be done with clarity. If somebody asks which part of the body is best among this nose, ear, eyes, hands, legs we cannot answer this question at all because all are needed which cannot be avoided at all, like the same in our investment should contain Gold, FD, Bonds, Equity, PPF, Real Estate all should be done in right quantity diversified. It is called as “Asset Allocation”. Investment in particular sector is always not the right way to see money for whole life time. So the question is not right, each sector gives its own profit and we need to take them.
4.Investment should not be done by borrowing
Many of the Indian families have this practice of investment type. But totally a wrong way approach to see profits. If somebody saying that good returns with profits can be seen from stock market, so blindly we should not invest without having an minimum knowledge about that. If any loss happens we are in a big head ache to pay the debts. Instead of this we can invest the money which we have extra that if also become loss we should have the ability to manage without that money.
5. Learn from every mistake done
We cannot find person not doing a single mistake. If we need to be safe without doing any mistake then we should not do any kind of investments. By doing nothing and keeping silence is a big mistake doing in life. We should fear after the investment if we are fearing then we should invest in that. So doubts are always born with us which travel till end of the life. But with clarity it can be corrected. Whatever the investment may be if gone any loss we should learn and we should not do the same again and if possible we should spread with all we know like friends, neighbors, relations.
6.Insurance and Investments are both different
People at many times have an confusion between insurance and investment, but both are different. After the death of us we need to support our family at some means and the invested in insurance does not give big returns but saves our family financially after our life period. We need to choose less premium with more gains from the money received we can do the investment in several sectors.
7. Avoid Sharing about our Investment to all
Our Investments portfolio should not be shared with all people we know. It might be very difficult to us if anybody goes negative on us. We should say and share only to those we trust like blood relations, wife. If we share to any bachelors we should be completely on hope. Then our Investment will reach to the right person at right time after us.
8. Excessive desire or greed ends in heavy loss
Warren buffet which a great Investor he himself expects only 20% as returns for the whole year. But most of us need to get rich very quickly without doing any work or without having an idea about our life. So we need to make an clear idea on our income and investment after the income is also most important as we need to safeguard our money. Consistent profits in any mode of investment is okay but also we need to success in all kind of investments.