Investors engage in different investment plans and sound tactics that suit their financial goals and deliver them their desired results. But there is a range of bad investment habits that every investor should stop in order to ensure that they recieve the best returns. These habits can have a severely negative impact on the investment journey and the eventual fulfillment of goals.
This article will discuss some of the top 5 bad investment habits that an investor should consciously stay away from. One can always get the help required from the most efficient financial advisors like Wealthclock Advisors. They will provide the right guidance to investors so that they can excel in their investment journey.
5 bad investment habits that one should stop right now
Investing in false schemes
There are a lot of fraud people operating in the financial world. They present schemes that offer quick ways of getting rich and these are mostly, fake ones! An investor can opt for equity mutual fund schemes instead. It will involve a long journey where investors can let their money grow and receive excellent results in wealth creation.
So, if a person invests in mutual funds they need to remain invested for the entire duration of the goal. Questions like 'How Do I select best performing mutual funds?' will be best answered by professional financial advisors.
Failure to form an investment budget
A budget can be developed to bring clarity as well as discipline into savings and investments. However, failing to do so, can lead to wrong decision makings and implementation of inefficient steps that will lead to negative outcomes.
Investments for returns only
Investments that have no such purpose will be a harmful one and will therefore, do no good. Every investor needs to have a purpose, be it a long-term or a short-term one and so, the entire investment journey should be based on that purpose and not just for returns only. It is important that investors choose the best investment plan with high returns in India with a clear purpose in mind.
Investment advices from family or peers
A lot of people think that their family members or their 'self-proclaimed expert' peers are right about the correct ways of investment. So, they give in to their advices and follow them while investing, often leading to devastating consequences. This is an extremely stupid thing to do and people should always consult the best financial experts for this purpose.
Wealthclock Advisors in Mumbai and other cities are a reputed name in this relation.
Delaying retirement planning
A lot of people think that they have sufficient time for their retirement investment planning and this is where they make a grave mistake! Retirement may seem like a future goal but the corpus that an investor will need is huge. They should also keep into consideration factors like inflation and the long life-expectancy after retirement. So, every investor should begin their retirement planning from an early age.