In the past decade, many Indians have embraced the equity culture and started investing in stocks and equity mutual funds. Some analysts feel that retail investors should put money in unlisted shares if they want outsized returns. Other financial advisers say retail investors should not dabble in unlisted shares for the simple reason that the risk they entail is not worth the rewards they offer.
Spurred by the stock market rally in the past two years, many investors have poured money into equities without adequately considering the risks involved. Many of them are new investors who have not been through a bear phase and do not have the temperament to withstand losses. They are investing after being bitten by the FOMO bug or swayed by finfluencers on social media. If you have taken too much risks, here is why you need to remain cautious.
With stock indices close to their all-time highs, there is bullishness all around. Individuals tend to make their worst investing mistakes in such bullish times. Here are a few common investing mistakes that investors should avoid at this stage.
Girl Power: Instruments To Help You Achieve Your Daughter’s Financial Goals
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Covid-19 was raging and several parts of Mumbai were locked down, but that didn’t stop Sarika Sinha from giving her daughter the best gift a parent can. Last month, the Mumbai-based finance professional opened a Sukanya Samriddhi Yojana account for her daughter Praashvi, now two. “I will put the maximum Rs 1.5 lakh in this scheme every year,” she beams. Financial planners say the Sukanya scheme is a good option for parents with daughters below 10 years. “The scheme offers assured returns, so there is a predictable compounding of the investment every year,” says Prableen Bajpai, founder and managing partner, FinFix Research and Analytics. “What’s more, the interest is fully tax free. Parents should not let go of this opportunity,” she adds.