Your income is regular and so should be your financial and investment plan. However, you should be a little more careful while writing out investment cheques. Your advisor is the right person to guide you in the maze called investments. Apart from being safe, your investment should not only be conforming to your financial plan (if it is in place), but should also be earning more than inflation.
However, if you are one of those DIY (do it yourself) investors, given here below is a negative list which should always be flashed before your eyes when you are contemplating an investment:-
- Do not put all your eggs in one basket. No matter how promising a particular investment may appear, it is prudent to diversify your portfolio across asset classes.
- Investments decisions based on free advice can give nasty surprises at times. It is impossible to make a crore by investing in a tip appearing in a financial newspaper worth Rs. 2. Consult your financial advisor for his feedback/opinion.
- If you are investing in stocks, do not put blind faith on your broker. Trust, but verify.
- Do not sell out too quickly. Always re-look at the bigger picture before pressing the panic button when market goes down.
- Do not invest in instruments about which you do not have full information. Avoid investment just because your friend has invested.
- Do not try to time the market. Remember it is time in the market and not timing the market that matters.
- Remember, it is not your thinking that makes big money. It is sitting! Avoid trading. Be it stock or mutual fund.
- It is time to be cautious when you hear/read the sentence “it’s different this time.” Time to get out of the market lock stock and barrel.
- Last but not the least; appoint a qualified financial advisor who has your concerns in mind rather than his gains.
Happy (safe) investing!!
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