Saturday 17 December 2011

How to avoid mistakes in investment?

Do not take a very conservative stand does not mean that you should play aggressively in the market.Middle ground is always better so you always according to market conditions can change in your investment basket.

We all make mistakes, we do not? Some mistakes are small that you get a second chance to make amends. But there are some mistakes that are very, very expensive and can easily be modified will not! Investment is a difficult area where you just can not afford to go wrong! So, what you should do before making an investment? Or do you know what are the most common mistakes you should avoid when making an investment? Well, here are seven common investment mistakes you should avoid at any cost is a list of!can!

Trade and investment between the misleading

Frankly, the business will help you build long term wealth, but your broker may be the best money can bring! So the basic difference between trade and investment before taking the plunge is important to understand.

Invest a lot more research and well thought out investment plan takes in several ways. The best investment strategy for you in your investments, your investment goals, your risk appetite, current market conditions and other factors about the future of the market and get some basic studies.

Taking a very conservative stand

Most people take a very conservative stand and bank deposits, Public Provident Fund (PPF) and so on would like to invest in traditional products. They argue that guarantee the return of traditional products to ensure they stock or mutual funds rather than equity returns are low. However, a good investment not only about guaranteed returns, but is about real returns. Real returns are returns post inflation.

Take a very aggressive stand

Do not take a very conservative stand does not mean that you should play aggressively in the market.Middle ground is always better so you always according to market conditions can change in your investment basket.

Holding worthless shares

This is the most common mistakes is to make some investors, holding shares in vain! Waste stocks just about non - performing stocks do not necessarily, it could mean the purchase of shares of the unheard. Purchase even if they are well when you are planning to buy stocks once unheard of.Such companies and their shares over a period of time are many examples of waste diversion.

Therefore, it is important to invest in shares of performance, and at the same time is supported by a good fund manager. For example, you regularly in small amounts and Systematic Investment Plan (SIP) can invest through a long time to make money by holding them.

Asset Allocation holds the key

For good long-term benefits of your investment basket should be filled with the right type of property. And fine-tune how the market behaves and in line with your risk appetite and financial goals depends Remember basket at regular intervals.

Market timing

This is an area where the experts feel. Markets are notoriously unpredictable in the short to medium terms. The nation's social, economic, political and business spectrums to change some parameters to predict the market, there is no fixed rule that says the market will react to this turn of events. Therefore, it such standards more time reading the exchanges are advised to stay away from. Instead, you have a closely controlled investment strategy that can help you make money in the long run can go to.

Overconfidence

Ask long-term players in the market, and you are being trusted with the recent success will be warned against.It is important to understand that their recent success in the markets of many "hidden" factors that may escape your attention could be caused by. His so-called "right of portfolio management in the over-confidence can spell trouble and you end up losing money!

Avoid these common mistakes at any cost. After all, a good start is half the battle.

Source:-http://loans.msn.bankbazaar.com/guide/7-mistakes-to-avoid-when-investing/7859/

No comments:

Post a Comment