Home Loans
Personal Loans
SME Loans
Business Loans - Udyog Plus 
Loan Against Securites
Loan Against Property
Mutual Fund
Stock and Securities
Wealth
Portfolio Management Services
Pension Funds
Life Insurance
Health Insurance
Wellness Solutions
Pay Bills
Pay for anything
Pay Anyone
Pay on Call
Payment Lounge
Credit Cards
1800-270-7000-
Our Products
-
Self Care
- Downloads
- Learnings
- About Us
-
More
-
Shareholders
-
Shareholders
-
Updates
-
-
Wealth Calculator
-
Shareholders
ABC Solution 
Loans
Insurance
AppStore
PlaystoreAditya Birla Sun Life AMC Limited
Aditya Birla Sun Life AMC Limited
5 investing mistakes to avoid in 2021
Jan 25, 2021
2 mins | Views 16006
In many ways, 2020 was shaping up to be a watershed year for investors. The market was at a high and growing. And then the unforeseen happened. COVID-19 struck the world. Forcing countries, to move into lockdowns never before seen in history. Economies came to a standstill, and the markets crashed across the world. The following months unfolded in slow motion, opening windows of opportunities for specific sectors and hope for others. A rejuvenated market soon followed this amidst the slow recovery of the economy.
Looking back as an investor, the year gone by was probably the most stressful in a long time. But it was also a year that taught us many lessons. Given an unexpected 2020, what are the investing mistakes to avoid in 2021? As always, some insights harshly reinforce basic lessons.
Avoid short-term outlooks. This new year is a great time to renew our commitment to remain confident about the bigger picture. To never get swayed by short-term troughs and not allow panic to dictate our behaviour. A country as vast and as vibrant ours can bounce back with vigour. As cliched as it may sound, we are a nation with a remarkably high proportion of millennials constantly on the move, thirsting for success and rewards. One can never under-estimate their positive impact on our economy.
Avoid confusing the past with the future. Our experience with our investments in the previous year may not have been as good as we had expected. However, this does not mean that our future returns may be low as well. Recoveries depend on a variety of factors and constant economic changes every year. One needs always to take a holistic view and stick with investments that exude the potential to give long-term returns. suitable investment may tend to pay-off in the long run.
Avoid expecting high returns. Especially true of instruments that come with higher risk quotients. We cannot treat our investments like buying lottery tickets, hoping to win all the time. We are privy to stories and legends of people who have made a killing in the markets, but they are purely exceptions. These stories should never be the main reason for our investments. As long as one is rooted in the fundamentals, we will always have a fair idea of the outcomes.
Avoid investing in a single asset. Even something as big a disaster as the Covid ended up playing havoc with just a couple of investment channels. The biggest lesson from that mishap was nothing new. It was a reminder to spread your portfolio, to invest in various assets. Spread your returns and reduce the risk. A well-diversified portfolio can prove to be a useful tool for risk management if you use it well. All investment experts agree that spreading your investments can helps minimize risk to a large extent.
Avoid gut-feel decisions. When we allow our emotions to usurp our decision-making process, we are widening our margins for error. Rational decisions based on opportunities and clear direction go a long way in deciding for our investments from known risks. Make use of technical and fundamental analysis and understand the risks well. If one is not equipped or not well-versed in financial analysis, there is no harm in seeking reliable expert advice.
And a final word. You can increase your Systematic Investment Plan(SIPs) annually in line with your hikes. Review your investment portfolio regularly. It is vital to keep a constant track of market conditions and review investments from time to time. Inculcating this habit will discipline our approach & will help to avoid mistakes over time.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
Our Experts
Tools and Calculator
RSS News Feed
Archives
Close
Hover to Zoom
Thank You
Message will change according to your requirement.