Common Investment Myths Which Needs to be Avoided ?

1. COMMON INVESTMENT MYTHS WHICH NEEDS TO BE AVOIDED Email-Info@Afinoz.com Web-https://www.afinoz.com/blogs/common-investment- myths-which-needs-to-be-avoided

2. • Fixed deposits are safe – Yes FD’s are safe and gives fixed returns but investing all the savings on FD’s is not wise. The returns on FD’s are not capable in beating inflation and if its not happening then the money is losing its potential purchasing power. They are undoubtedly very safe but not always a best option. • Quick Money with stock markets – Investing in stock markets require discipline. The long drawn myth associated with stock markets is not true that the long term investors are rewarded by stock market. With stock markets one need to be calm and patient. It requires a well-balanced and rational behaviour to get the maximum returns from investment. • Investing in what is the hot-cake – Go with the value investing. Following the herd will not get you the desired results. It’s wise to not go by the market trend or the hot pick of the month

3. • Tax saving objective of investment – Combining the goal of investment and saving for retirement, children’s future etc will be the most appropriate decision to go with. Investing only for the purpose of saving tax doesn’t meet the purpose. It’s not a smart decision to go with. • Looking for timing the market – Making investments through SIP, STP and stay invested for long term. Trying to identify the market scenario and making purchases when it is low and slae when it is high is not a practical idea. There are other influencing factors to the stock market. Predicting and investing accordingly is practically not possible. • Smart investments can’t be planned – There is no need to become a know it all individual. It would just need common sense and self-discipline. If one lacks enough knowledge and experience, one can always take the help of professional planners.

4. • Its too early to plan investment as I’m too young – Youngsters usually delay the investment process considering they will begin once they are a bit older. However, that’s not the right thing to maintain. Investment planning must begin early in life. The right time to begin investing is from when one starts earning. It will be a loss if investment options are delayed. • In the early days of starting a career an individual will have fewer liabilities and one can even push oneself to earn more to save more. A person will not have to compromise on future finances if one begins investing early on in life. • Investment in Gold is best – Our Indian tradition values investment in gold acts as superior and it helps getting best returns from them. Although it is most common, it is not the best option. • Fact checking will give a clear picture of gold investments and its annual yields. It is surely the safest option but investing in other options will yield much better returns. • Real estate grows wealth rapidly – This investment option will require waiting for a longer time to see it bloom. Over last few years the real estate has not witnessed more than 3-4% returns when calculated on annual basis. Also one will require huge sum of money to get returns worth investing.

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