The 17 Mistakes To Avoid While Investing In 2017

Keep these points in mind to rake in the moolah from the markets this year.

- Viral Bhatt

As 2017 starts and a new financial year comes on, investors should be careful about what they believe in and how they approach their investments. Many a times, it is not the investment itself but the approach and attitude with which the investment was made that is wrong.

While a thorough review of financial investments and goals is best performed by a certified financial planner who will align the same with your goals, here are some common mistakes that investors should take care to avoid in the new year.

1) Expecting too much or using someone else’s expectations

Investing for the long term involves creating a well-diversified portfolio designed to provide you with the appropriate levels of risk & return under a variety of market scenarios. But despite having the ‘right’ portfolio, no one can predict or control what returns the market will actually provide. It is important to expect a rate of return that is line with your financial goals, and your current asset allocation.

2) Unclear investment goals

The adage, “If you don’t know where you are going, you will probably end up somewhere else,” holds true for investing as anything else. Everything from the investment plan to the strategies employed to the portfolio design and even stocks chosen need to be aligned to your life goals. Many investors blindly follow the latest investment fad or look at maximising short term investment return instead of designing an investment portfolio that has a high probability of achieving their long-term investment objectives. Either way, once an investment fad has become popular and gained the public’s attention, it can no longer be used to have an edge.