REASONS FOR LOSING MONEY IN EQUITIES

HY should you invest in equities? Simply to create enough wealth and be financially free.

- PV SUBRAMANYAM

Once you learn to invest in equities, the road to being financially free becomes easier. However, it is not easy to invest in equities — especially, creating a portfolio of equity shares. It is easier to invest in equity mutual funds. Learning equity investment is not easy but at least let us check whether we are avoiding the mistakes.

A dozen reasons why people lose money in equities:

Emotional decision making: Investors often panic-sell during market downturns out of fear, locking in losses, or buy into hype during bullish periods, leading to overpaying for assets that later correct.

Lack of patience: Expecting quick returns or reacting impatiently to temporary underperformance causes premature exits from solid investments, missing out on long-term compounding and recovery.