7 Investing Mistakes you need to Avoid in 2024

1. Investing without considering your Goal and Risk Profile–Its like setting sail on a vast ocean without a destination or a weather map. Goal sets direction and tangible target to your journey and helps make informed decisions whereas risk profiling prevents overexposure to potential financial risks beyond your comfort zones due to possible underperformances. Keeping too much exposure in a single asset class, be it equity or Fixed Income, will not fetch desired results.
2. Selecting a Product without proper Due Diligence – By doing proper due diligence and Research, you can make informed decisions, avoid remorse, protect yourself from any irregularities, and get the best possible deal. For e.g. High yield products which do not have credibility end up with capital erosion.
3. Reshuffling your investments too often– Mutual fund investments are best meant for the long haul. Frequent reshuffling can hinder your progress and derail your financial journey. By adopting a patient, strategic, and well-informed approach, you can maximize your returns and achieve your financial goals over the long term. For e.g. past performances of Mutual funds, staying invested for long term over 20 years have fetched over 20% annualized returns historically.
4. Stopping to Invest when the markets are down- Remember, downturns are a natural part of the market cycle. Historically, the market has trended upwards over the long term, rewarding patient investors. Sticking to your long-term investment strategy and avoiding emotional decisions will help you weather the storm and come out ahead in the long run. By staying put in the downturn and continuing being invested for long term averages out the cost valve and helps generate Alpha in the long run.
5. Putting all your eggs in one basket- Diversification helps spread the risk, unearthing possible opportunities by taking help of financial professionals by investing across asset classes and making a balanced portfolio for a smoother financial journey. Assuming you have invested in a safe asset like fixed income at 6% for a long term of 15 years, you may tend to lose opportunities to reach your goals which may have been possible if the portfolio was balanced and well diversified.
6. Not Considering Impact of Inflation over returns-The effect of inflation compounds over time and leads to erosion of purchasing power. You might reach your target goal, but it might take longer time and cost you more than you anticipated in your retirement years. You need to Track your investment returns in real terms,diversify your portfolio and seek professional guidance to navigate through the journey. For E.g. If you plan for retirement without factoring in inflation, you might underestimate how much money you will need to maintain your desired lifestyle in future.
7. Not considering Estate planning while investing- Remember, estate planning isn’t just for the wealthy. It’s crucial for anyone who wants to ensure their assets are distributed according to their wishes, protect their loved ones, and minimize potential legal hassles complications. Adding appropriate beneficiaries and nominations to all your financial possessions is crucial.

Disclaimer: The views expressed in this article are personal in nature and in is no way trying to predict the markets or to time them. The views expressed are for information purposes only and do not construe to be any investment, legal or taxation advice. Please consult your Mutual Fund Distributor before investing. The views expressed are based on the current market scenario and the same is subject to change. There are no guaranteed or assured returns under any of the above-mentioned schemes / fund/ asset class.

Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.