20 Common Investment Mistakes & How to Avoid Them | Lessons in Investing for Beginners

Good information 👍

Value added video

Hi Shankar, thank you for helpful video. Just have one doubt
Profit booking will kill compounding of a stock? I mean exiting when we feel it reaches high valuation and try to enter in correction or attractive valuation. Please answer

Sir
Does tax hervesting really work if i calculate the tax for consecutive 2yr or more financial yrs?(seen your tax hervesting video)
Regards

I think a huge mistake most people make is to not teach our kids about the equity investing in the childhood. I have personally lost around 15 years of compounding because of this. My net worth would have been 10x of what it is today had i been taught about this earlier.

crystal clearrrrrrrrrr
u have narrated in wonderful way n every investor should watch n do self analysis..
I have done for myself..
did lot of mistakes in my initial days

Nice video Shankar. ❤ By the way may I know ur age now?

Hello Shankar sir,please make one informative video on Indian AI stocks

Hi Shankar,
Awesome vedio as usual😊😊
# Request
Please make a vedio on - how to understand the sectors?

One mistake I am not making is investing time in watching Shankar sir's knowledge-sharing videos.😉

Thanks for posting this video, Shankar sir.
I have made a checklist for myself if anyone wants to get some inspiration you can customize it accordingly.
Disclosure: I only wrote down what was relevant to me, So tips that were too specific for stocks and not for MF are skipped.

Mistakes to Avoid in Investing by Shankar Sir:

Avoid stopping investments based on market highs or lows.
a. Even SIPs done during market highs can still perform at par with the index, yielding 10-12% returns.

Don't invest without setting clear goals, as it can lead to poor decisions.
a. Tag your SIPs for specific goals, such as tax-saving, long-term investing, or short-term investing.

Avoid getting influenced without conducting due diligence.

Don't set unrealistic expectations based on hypothetical scenarios in excel sheets.
a. Unexpected factors can arise and affect your investment goals.

Pay attention to asset allocation for risk-adjusted returns.
a. Diversify your assets across different classes like GOLD, Equity, Bond, FD, etc., to achieve similar returns with reduced risks.

Stick to your analysis and avoid hastily switching mutual funds or stocks based on short-term performance.
a. Rebalancing is important but should not be confused with impatience.
b. Before making any changes, analyze the benefits and losses of the move.

Rebalance your portfolio to manage the risks of sticking to underperforming investments.

Avoid chasing top-performing funds, as they often end up underperforming in the long run.
a. Choose funds based on their long-term track record and consistency.
b. Shankar's 221 Strategy could provide insights into fund selection.

Timing the market is pointless; continuous SIPs in MFs will average out returns over time.

Avoid doubting or exiting schemes prematurely. Stick to your investment thesis and assess any fundamental changes before reacting to short-term price fluctuations.

Be open to learning and identifying overlooked flaws in your strategy. However, avoid blindly following others' opinions and stick to your informed decisions.

Avoid emotional attachment to any investment. Have an exit plan in place by determining an acceptable loss limit and act accordingly.

Rebalancing should consider the overall composition of your portfolio, not just the amount invested. Rebalancing once or twice a year should suffice.

Remember to exercise patience in your investment journey and stay committed to your long-term goals.

Must needed for every retail investor

Thank you for your valuable information. Can you please make a videos on investing in IT companies like FSL , birla soft, mastek, HCL and infosys for long term of 15 + years . Thank you

Good content and well articulated... I am mutual fund distributor and i have suggested your video to my client which is require for financial education. Good work and keep it up brother 😊

excellent video...

KEY TAKEAWAYS: -
1. Not Investing - Delaying investments due to fear of market lows or highs. Start investing regardless of market conditions.
2. No Clear Goals - Having unclear investment goals leads to poor decisions. Define specific goals and link investments.
3. Getting Influenced - Assess the expertise and incentives of advisors. Do your own research.
4. Unrealistic Expectations - Have realistic return expectations based on historical data. Markets are quite predictable.
5. Ignoring Asset Allocation - Diversify across asset classes based on goals. Don't just invest in equity funds.
6. Lack of Research - Avoid investing without proper research into company fundamentals.
7. Craving Action - Stick to core investments. Don't chase new options just for excitement.
8. Ignoring Risk Management - Use proper strategies to reduce portfolio risk like diversification, hedging, etc.
9. Chasing Hot Tips - Avoid stock tips and do your own analysis. Tips have hidden agendas.
10. Performance Chasing - Past returns don't indicate future performance. Focus on investment strategy.
11. Timing the Market - Data shows even poor market timers get decent returns over the long term. Time in the market matters.
12. Abandoning Good Strategies - Don't abandon well-researched investments too quickly. Give a sufficient time horizon.
13. Overconfidence - Recognize the limits of your expertise. Seek diverse opinions. Don't follow the herd.
14. Holding Loser Stocks - Exit positions using stop losses if the investment thesis changes. Don't get emotionally attached.
15. Acting on Noise - Ignore short-term news and market fluctuations. Focus on long-term business fundamentals.
16. Neglecting Rebalancing - Rebalance periodically to maintain target asset allocation and manage risk.
17. Not Tracking Investments - Use tools to track all investments in one place. Monitor news on investments.
18. Lack of Patience - Adopt a long-term investing mindset. Premature exits can leave a lot of money on the table.
19. Ignoring Fees & Taxes - Minimize investment costs and tax impact. But don't make it the primary selection criteria.
20. Using Tax as Main Criteria - Don't choose investments just for tax efficiency if returns are lower. Evaluate post-tax returns.

Very nice explanation and teaching sir, thank u sir, keep going 👍

Sar Hindi please please

Hi Shankar, you deserve lot more subscribers man..

Awesome video! Kudos

Sir,Is the site available where I can get investment option if I provide an amount and my profile.

Very good, unbaised advise by you, but if U speak in Hindi, it will reach to more people, i am English. I think you got the message

An excellent session again Shankar. Will be a value addition for many individuals.

Hey Shankar! Again a very useful guide on investing mistakes! One thing more I would ask you from the MF perspective should one prefer Median to Mean, consider the Return and Risk consistency of an MF (especially Small Caps & Thematics) when choosing a fund?

Excellent summary❤

I appreciate your hard work while preparing this video

Dear Sir, I want to begin by expressing my gratitude for creating such informative and excellent videos, which have been instrumental in spreading awareness about money management and investment. Since 2017, I have been diligently investing in mutual funds, and my current portfolio stands at 12 lakhs. I am now considering purchasing a home with the assistance of a home loan, and I am contemplating withdrawing a partial amount of approximately 6 lakhs from my MF portfolio.

Additionally, I have 4 lakhs in liquid cash. Now, I seek your advice on whether it would be wise to withdraw money from my MF portfolio for the home loan downpayment, or if it's better to use my liquid cash solely for the home loan down payment and finance the rest through the loan. Your expert guidance on this matter would be highly appreciated. Thank you!

Thank you sir for the class .sir i have started seeing all of your videos my taught is that if start investing from Mohnish prabrai method for the long term gain.will be good idea.

Very helpful

Hi Shankarnath Sir. Thanks for the insightful video.

I have a dilemma and request you to suggest on the same.

I invest in stocks directly and I have to he following confusion.

Do we invest in stocks (after researching and got conviction of growth story) and forget them or do we switch money to pockets of undervaluation from overvaluation zones in our portfolio. But the conflicting thought is that most gains only come from only couple of days of gain and missing on these impacts the overall return as opposed to staying invested for long with buy and forget approach. Which approach would you suggest. Thanks in advance.

Shankar you are gem. most underrated channel it is. this channel deserves. 30M Active Indian subscribers..... All the best

Very nice informative session

Ye kotak mahindra bank to apne FD return ka bhi feeling nhi de rha hai sir 😢

I wish Mr Shyaam sekar, Mr sankar do interview program

Excellent and very informative presentation 👏👏👏👏👏

Many thanks, Shankar Sir on such an insightful video. Kudos to your dedication and efforts taken to really educate and cause a change in investment behavior. In a time when everyone is promoting one product or another under the guise of imparting knowledge, you stand out with your honest and excellent teaching skills. May you continue to empower and inspire others and may the force be with you Sir. Thank you once again.

Thank you very much Sir.

Hi Shankar, Extremely good content with supporting research.
Pls make a video on comparison between fixed income options such as FD, Bonds, Debentures, P2P lending etc.

Thanks for the great insights.. 👍😊

Shankar Sir, I am becoming a great fan of you for the thoughtful insights you provide in your every session. I request you to make a video on home loan debt reduction strategy which is pain point of every middle class. I personally think pre-closure of home loan is missing the bus, instead I perform some SIP & investment which gives me returns greater than the home loan interest

Sir, can you make a video on the efficiency of the new trend "trading bots" and do they really work ?

I just discovered you but I like you a lot. When you recommend buying bonds, do you mean for trading bonds or holding bond for interest? TY

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Can you plz tell me in which video you explained that goal based worksheet?

Patience and stoploss in long term investment, ie abv 5 year, isn't contradictory???

How to reach you for one on one investment planning