If you are new to investing, there will be a few mistakes that you’ll make. You will only learn after you’ve made a few mistakes, but this does not mean that you are wrong. There are a few mistakes that others do that you can avoid making.
Here are 7 mistakes you should avoid when it comes to fixed deposits:
1. No clear goals for investments
Having a goal gives us a clear idea about what we want to do. If you do not have a proper goal when it comes to investments, then you might end up disappointed. Your aim should be easy to achieve. Your objective matters a lot in forming a strong strategy for investments. You might want to save money in FD Scheme for various reasons like for a wedding, higher education, a vacation, retirement, etc. The strategy that you choose when you are investing your money depends on your aim and also on your goal.
2. Being traditional
Depending on the traditional way of investment can also be counted as a mistake. If you invest in traditional investment schemes like post office schemes or bank schemes, it will give you returns that are steady, but those returns will only be for a short-term or a medium-term. If you are just starting your career, you should take a few risks. If you go for the traditional method of investment, you might not get the complete benefits. But this does not mean that you have to invest all of your money.
3. Keeping aside insurance
Having insurance is necessary. Insurance covers all the uncertainties in life and if anything bad happens, you will be prepared. Having a basic insurance like health insurance, term plan, etc., is very important. If anything happens, having insurance will not affect your future financial goals.
4. Investing in only one option
If you invest all your money in one particular option and if you end up losing that money, you will be left with nothing. It is necessary that you diversify in different options such as stocks, real estate, etc. Investing your money in more than one option will not only create a balance, but you will also be able to get more benefits from different options.
5. Not keeping a tab on your investments
It is necessary that you keep a tab on all your investments periodically. The benefits that you get from your investments are affected by a lot of factors, including the current market scenario. It is also likely that your investment was affected by the latest demonetization drive by the Indian government.
6. Effects of inflation
The prices of all the commodities are increasing every day. It is necessary to factor in inflation when you are thinking about investing. It is better to include inflation as a factor now than to have regrets and not get any benefits later.
7. Paying surplus amount
No one will offer their services free of cost. Different people will charge you a different amount of money for the same services. It is of the utmost importance that you do a proper research before you decide on one person or service so that you do not end up paying more.
DISCLAIMER: This article expresses my own ideas and opinions. Any information I have shared are from sources that I believe to be reliable and accurate. I did not receive any financial compensation in writing this post, nor do I own any shares in any company I’ve mentioned. I encourage any reader to do their own diligent research first before making any investment decisions.
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