Hey friends, you started investing in the stock market and mutual funds and thought you’d become rich right away? Hey, wait a minute! 90% of newcomers in India make these mistakes the first time and lose all their money.
I myself suffered huge losses in the beginning, but now I understand. Today I’m telling you straight up: If you make these 7 big mistakes, your investment dreams will be shattered!
1. Putting all your money in one place
Brother, did you put all your money in one stock or one mutual fund? This is like playing the lottery! If that company goes bust, all your money is gone. Always invest in 10-15 different places – stocks, mutual funds, gold, fixed deposits, a mix of everything!
2. Running after tips
Someone in a WhatsApp group says, “This stock will increase 10x,” and you invest without thinking? 99% of people are ruined like this! Those who give tips are often at a loss, how will they benefit you? Use your brain, do your research, or else your money will be lost!
3. Watch the market daily
Wake up in the morning and watch it, watch it in the afternoon, and even watch it at night before going to sleep? Don’t worry, The market will fluctuate; that’s its job. If you’re investing for 5-10 years, don’t watch it daily; check every month or three.
4. Sell at a loss and sell quickly at a profit
The stock was worth ₹100, but when it fell to ₹80, did you sell it out of fear? And when it reached ₹120, did you book a profit? This is the biggest mistake! If a good company is making a loss, buy more, let it turn into a profit – see how much profit you’ll make in 5-10 years!
5. Investing on EMIs and Loans
You’re paying your home EMI, have a bike loan, and on top of that, you’ve bought stocks with a credit card? This is gambling! First, pay off all your debts, build an emergency fund (6 months’ expenses), then invest whatever’s left.
6. Just started an SIP and forgot about it
Started an SIP in a mutual fund and thought it was enough? Increase your SIP every year (10-15%), check your portfolio every 2-3 years, and change any funds that are performing poorly. Don’t just buy gold with an SIP!
7. Investing in the wrong place to save tax
Invested in an ELSS fund just to save tax, but the fund was bad? Saved tax, but incurred losses in three years! First, look for a good fund, then if you get a tax-saving bonus, it’s fine; otherwise, don’t invest.
Bonus Tip: Always remember these 3 things.
Invest a little bit every month (SIP), don’t invest a large amount all at once.
Invest for 10-15 years, and give up the dream of becoming rich in 1-2 years.
Check your portfolio every year and keep learning.
| Mistake | Loss | Right Way |
|---|---|---|
| All the money in one place | All the money can be lost | Spread it in 10-15 places |
| Investing on tips | 99% loss | Do your research |
| Watching the market daily | Tension + wrong decision | Check in 3-6 months |
| Sell at a loss | Leaving a good company | Buying more at a loss |
| Investing with a loan | Ruin is certain | Repay the loan first |
Pros and Cons (of Investing)
Pros (with the right way):
- You can make 5-10 lakhs or even crores in 10-15 years
- Tension-free life, money will grow automatically
- Saving taxes and inflation It could lead to a loss.
Cons (with the wrong approach):
- You could lose all your money.
- You won’t be able to sleep at night.
- You’ll have to tell your family, “I lost money.”
Conclusion
Investing is very simple if you avoid these 7 mistakes. Don’t fall for the quick get-rich-quick approach; take it slowly but on the right path. You can start an SIP with as little as ₹500-1000.
Just maintain discipline, do your research, and be prepared for the long haul! Tell us in the comments – what investment mistakes have you ever made? And which fund or stock are you investing in now? Speak the truth directly!
