How to become a more confident female investor and Planner - The Mutual Funds Way

As we pass through one more tough financial year, I was thinking about few financial mistakes which we can avoid on any day for better financial health and figured out below:

1. Postponing the Investment decisions: Most of us usually too busy to invest and almost available anytime to spend. We wait for next promotion, next onsite trip, salary hike, so on and so forth. Let us find some time to invest also

2. Bad Investment Hierarchy: We start things without any reason. We start PPF without having emergency fund. We buy bike insurance but not health insurance. We love our family but never buy term insurance. Better Hierarchy can be....emergency fund, short term goals in debt, long term in equity. Have biggggg term insurance at early age.

3. Over investing in one asset class: Most of the investors usually over invest in one asset class(me almost 90% in equity and trying to get into 70:30 ratio by the end of this financial year). Try to get the balance to your portfolio. Thumb rule is your age should sit in debt and (100-ur age) should sit in equity.

4. Too greedy: We all try to get rich ASAP and due to this we make worst financial decisions possible and end up nowhere. We all need to understand that all fixed return investment vehicles can only give returns close to inflation and equity close to 12 to 14% over long run.

5. No Periodic Review/Daily Review: We start LIC and will never check returns for 15 years(usually it is 5.5%), we start FD and will never bother for 5 years(post tax it is usually 5%), we buy a land and will wait for decades to appreciate(not sure on returns). But once we get into equity we check the trading account every day. In fact, over long run none of the investments not even come closer to equity.

Happy Investing!!!!!!

 

As the market is bleeding severely, I was thinking about our common strange behavior with equity. We all try to buy things when there are offers(cheaper) during festivals or special occasions. The only contrary to this behavior is buying into equity. We buy when the markets are rocketing up and become very scary when its going down.....
In fact anything need to be bought when its cheap......go and buy when there's blood in the streets, EVEN IF THE BLOOD IS YOUR OWN......

By
Thavva

 

@Anisu Mutual funds are the best way for any future financial goals, if your investment(SIP) has sit in(equities) atleast for 5years. Retirement is a long term goal and wisdom proves that equity can beat all asset classes (Gold, real estate, FD... etc) in big margin over long term..

 

Sip investment is like a daily walk in the park . A single walk will not make any difference but walking regularly with discipline over the years will make you healthy and fit . Similarly a sip over the years with discipline will make you wealthy and help you reach your life goals.