Know these big mistakes before starting investment, which big investors always avoid doing

By | September 27, 2023
investment tips

Generally, new investors do not understand the difference between trading and investment, they do not know what is the basic difference between Mutual Fund and Share Market. Such people jump directly into the stock market in the name of investment. They buy any stock on the opinion of other people, remain in little profit for 2-4 days and then go into loss. Then they catch your ear in the name of investment. They don’t even know that they were not investing but betting.

Why 90% of people lose their money

This happens because such people buy the stock at a time when that stock is very much discussed, its price is increasing. Such people bid on the running horse without understanding the trader’s mindset and investors’ mindset, i.e. keep buying the fast growing stock and when the selling starts in that stock, when the traders start squaring off their deals. The stock falls down in such a way that you do not even get a chance to recover and the operators do everything possible. Operators are the big fish in the ocean of the stock market, who are always on the lookout for small fish. They want that newbies come to try their luck in the market and they lick their entire accumulated capital. In such a situation, the big question arises as to what to do.

Start with Mutual Fund, not the stock market

Start your investment journey with Mutual Fund. Now you will say that the investment of Mutual Fund is mostly done in the share market only, how is it different from the share market. So the answer is that there are fund managers in Mutual Funds (in Active Funds) who are very experienced. They invest your money in different shares according to their own and for this some money is also taken from you. The risk is reduced in this type of investment. However, in Passive Fund (Index Fund) you do not even get this charge, because there is no fund manager in it. Warren Buffett, the world’s biggest investor, has also considered Index Fund better than Active Fund. He has also shown this by proving it.

See Also :   Mutual fund redemption How to withdraw money deposited in mutual fund - Tutorial Part 7

Start with mutual funds, not the stock market

Start investing in Index Fund like this

The method of investing in Index Fund has also been explained in a very easy language. Which you can understand by reading only once. There is no need for any degree or diploma for this. For this, click on the link of this article given below, and start your investment journey afresh.