Burn These

10 Financial Bad Habits

This Dussehra



 #10 Blindly Following an Investment Trend

Your friend’s investment strategy might not work for you Consider your own risk appetite, long-term financial goals and short-term needs to plan your investments

#9 Not Keeping Spending Habit in Check

Do you spend more than 30% of your salary every month?  Stop responding to impulsive spending habits, if you actually want to be rich

#8 Investing Without a Financial Goal

Do you want to create a retirement corpus? Do you want to go on a world tour next year? Define your financial goals to stay motivated and make decisions based on the outcome you are seeking

#7 Not Being Patient with Your Investments

Stocks and mutual fund investments come with a degree of market risk However, it’s not without a reason that ace investor and billionaire, late Rakesh Jhunjhunwala advised being patient with investments

#6 Not Diversifying Your Portfolio

If you keep your eggs in one basket or invest in only one sector/ type of fund, you risk losing it all if the market goes down Invest in different types of assets to prevent that from happening

#5 Not Gathering Enough Information

Knowing the investment objective, past performance, fund manager’s investment style, etc. helps make investments that align with your financial goals Without enough information, investing may not bring you the fruits you want to reap

#4 Not Saving up for an Emergency Fund

Life is unpredictable. Having enough financial cushion during an emergency is a huge stress reliever You could keep a separate savings account or invest in funds with high liquidity

#3 Not Investing in a Health Insurance Policy

Protect your life’s savings with comprehensive health insurance to cover hospitalisation and treatment expenses  You can also claim tax deductions of up to Rs.75,000 (Below 60 - Rs.25,000  and Over 60 - Rs.50,0000) under Section 80D

#2 Not Following a Trusted Investor

If you are just starting out, follow a trusted and revered investor to learn their investment style While you must not follow investment strategies blindly, you can learn a lot from other investors

#1 Not Starting a SIP

Irrespective of your age and profession, one of the easiest ways to invest in mutual funds is through SIP (Systematic Investment Plan)

Break your 1st Financial Bad Habit Now!

Start an SIP with a minimum investment of Rs.500

Disclaimer: Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.