Hope You do not Fall Prey to these Investment Myths
As a Financial Planner and an Investment Advisory firm, we come across quite a few biases over-and-over again while dealing with people from all walks of life. Sometimes it is quite surprising that many of the people know more about the state of nation’s and USA’s finances than their own! Investment myths abound, leading to mis-purchasing and misdirected savings. Due to this many investors burn their fingers and then swear to stay away from perfectly healthy investment avenues, only because they actually did not understand what they were getting into, in the first place. Here we present to you four very common investment myths. Myth 01: I have made my Tax Saving Investments, so My Job is Done. Fact 01: People who want to invest but are not too serious about it belong to this category. This is a common mistake made by investors. Saving on taxes is a good ...
ARE YOU INVESTING & MANAGING YOUR MONEY RATIONALLY?
Errors Investors Repeatedly Make in Choice of Investment and Timing Behavioural Finance is a very interesting field of psychology. It studies and analyses the reaction of people and their bias when faced with investment decisions. Please read the instances given below – do you relate yourself to any one or more of them? You have your investments in various stock-related instruments – equity and equity-diversified mutual funds. Some of these are in profit while some are in loss currently. You need some money urgently. You sell the profit making ones. Effectively you have sold the ones doing well since you keep hoping that you will ‘recover back your loss’! This explains why people realize the gains of winning stocks too soon. The flip side of the coin is people hold on to losing stocks for too long; unfortunately, many of the losing stocks never recover, and the losses incurred continued ...