5 Financial mistakes you should avoid in turbulent markets

If something has drastically changed in the past few years, it is the way Indians do business. And any kind of change, whether good or bad, causes discomfort and distress for a while. Our economy is going through a transition period. The fact that our economy is still developing has made this transition even more challenging for us.

Lately, there has been a panic-vibe in the market, a kind of apprehension about a slow-down of the Indian economy. Considering the above mentioned, it is natural that investors also panic about investments in various assets.  However, what investors need to understand is that ups and downs are a part of any asset class and what goes up will see a correction and will rise again.  Last week we wrote an article on “Is it the right time to sell mutual funds” to explain why there’s nothing to worry if you’re a long term investor. This week we thought to bring to light the most common mistakes people make in such times and often lose a huge amount of money. Here are the things you should avoid if you don’t want to end up losing your money -:

DON’T WASTE TIME TALKING TO NON INVESTORS

Are you hanging out a lot with your friend/ relative or colleague who’s not planned his/her finances yet? Well, that’s the reason you’re contemplating whether I should withdraw the money or not. Remember, your friend/ relative or colleague has not even taken the first step to plan for their goals. So the only person you should be talking to right now is your advisor and check with them how far your financial goal is.

DON’T RUSH TO SELL

Buy low and sell high is the basic investment principle but we always tend to do the opposite when it comes to financial assets. Thus don’t rush to sell instead rush to buy more in the lower markets this time.
PS. – Our investors who continued investing in the 2008 meltdown made huge profits when the markets saw a high.

DON’T BE IMPATIENT

Everyone wants TAT (turn-around time) to be the quickest. But do you remember what you said when you started investing – “I am here till my goal arrives and will stay for long”. Stand by your words as your goal is too far.

DON’T SEEK OPINIONS ALL THE TIME

People who receive frequent news and views on their portfolio makes much less money than people who refrain from it. It is important to listen to experts; however, it is even more important to give the right amount of time for things to happen. Worrying too much and very often will not make you quick money instead you might end up losing it. Keeping a stringent check all the time on anything or anyone helps no one.

While the Indian economy is rapidly changing and adapting itself to its international demands, it is one of the fastest-growing economies nonetheless despite the perceived slowdown by the general public at large. Yes, there will be ups and downs in the markets all the time and no one can control it. What you can control is the urge to react on news and views you hear about the markets and let your investments grow so that you can fulfill your financial goals.

Author:

SLA Financial Solutions is a Leading Advisory firm based out of Jaipur. We are amongst the top 5 Financial Advisory firm with a team of 20 + people. We have been awarded twice by CNBC as best Financial Advisor across North India.

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