THINGS TO AVOID WHILE INVESTING IN EQUITY

 

  • Don’t invest on tips: Don’t invest blindly in equities based on tips. You need to understand the fundamentals of the underlying company before investing.
  • Don’t try to time the market: It is almost impossible to time the market unless you are an expert at interpreting technical indicators.
  • Don’t take a loan to invest in equity: When markets are having a good run, some get excited and take loans to invest in equity to get more gains. Never borrow money to invest in assets that are volatile.
  • Equity is not for quick money: Don’t get tempted to sell your funds when you see gains. By doing this, you may not actually benefit from it.
  • Don’t stop SIP : when markets go down: When markets go down, many of investors stop their systematic investment plan (SIP). You need to look at equity from a long-term perspective.

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