Not starting investing from our first paycheque.
Not knowing the financial life goals. Not segregating them in the short term, medium-term and long term category.
Do not invest according to goal-based investment theory. All investments have done randomly.
Don’t analyse spending pattern according to NEEDS and WANTS.
Don’t make a monthly budget and fix monthly saving rate. Follow income-Spending = Saving formula instead of Income- Saving = Spending
Stick to Recurring deposits and Fixed deposits only as investment options.
Considering Share market as Satta bazaar.
Buying real estate and gold as an investment.
Buying a house at a very early stage in career and committed to huge EMI and sparing no money to save for other life goals.
Buying Insurance Companies traditional insurance policies for life insurance need.
Buying Insurance policies on children’s name for their education purpose.
Considering health insurance premium as wastage of money.
Investing in any share suggesting by friends, colleagues or relatives.
Expecting unreasonable returns from share market.
When returns are not as per expectation liquidate the investment immediately even at a loss.
Stopping ongoing SIP when the market is down and again restarting when the market starts an upward movement. Follow the herd mentality.
Invest in any mutual fund based on the returns it provides in the last one year. Never check whether is it suitable with the goal’s time frame.
Not having long term view while investing. Take short term view also for long term life goals.
Give more importance to short term goals and secondary goals like vacations, buying electronics and household items as well as giving more importance to kids education and marriage planning than retirement planning
Investing in any proxy scheme for the greed of extra return.
Never analysis the features, characteristics and pros and cons of the financial product before investing.
Never access self-risk profiling before investing in any assets. Never invest according to asset allocation for the particular goal.
Start investments prior to hedging life risks.
Not having sufficient emergency fund, adequate life insurance and adequate health insurance cover for self and family members.
Relying only on employer health insurance plan for a health emergency.
Relying only on a single stream of income. Never think of passive income.
Never focus on managing the downside risk rather than always trying to maximizing the returns from the investments.
Overuse of credit cards and keep on paying a minimum amount every month mostly by youngsters.
Not being disciplined in investing. Fear about the short term fluctuations in share market. That’s why not benefitted by Compounding factor.
Greed and Fear make Indian retail investors lose money in the long run and never create wealth through investing
