Tuesday, November 23, 2010

Popular Investment Myths Debunked


Making an investment is the best way to save the money an also to grow it securely. But most of the people do not invest their money due to some myths o they try to postpone it.  Here are some of the popular myths for investments which should be exposed now.
1.      Investing in fixed deposits
Are you among those people who think that fixed deposits are among the safest and best investment options. Well, you are right but only partially. Fixed deposits give you fixed return but that is not the best investment option. You actually lose the purchasing power of the money during inflation term.
2.      Only experts can handle investments
Well, if you are among those who believe that only experts can handle the investments properly, you are wrong. It is your money and you know how to handle it. Just invest carefully and keep a track on your money, rest everything will be fine.
3.      Too early to plan retirement
When a youngster gets a job and he starts earning, he plans to spend the money for his needs and sometimes for some luxuries. Very few youngsters plan to save money right from the initial days of their job. And from these few youngsters, there would be hardly any who would plan to invest it. Most of them think that it is good to deposit the money in the bank and save it for any need but rarely anyone would plan to grow it. If someone asks you to invest your money for your retirement, you would wonder as there is a lot of time for your retirement. But if you think practically and wisely, you would realize that this is the right time when you should start investing for your retirement so that you may have enough money to fulfill your and your family’s need after your retirement.
4.      Stock markets are the best place to invest
You can only earn through stocks if you are patient and calm. This is a long term procedure and you need to invest your money for a long period. Also it is important to keep an eye on the stock market.
5.      Working only with timing
Most of the people think that they should purchase stock when the market is low and should sell tem when it is high to gain profits. Reality is that this is not the only factor which affects the price of the stock and so you should be careful.
6.      Diversification of funds
Diversification of funds is important while investing in mutual funds and stocks. But if you are investing in more than required, then you are losing your money as you are actually investing on average  stocks which will not give you good returns.
7.      Investing in the latest option
It is advised not to follow the crowd for investments. Pick your investment plan carefully after doing appropriate research on various plans so that you may not lose your money.
8.      Investment made for saving tax
If your only objective for making investment is to save tax, you are certainly doing a wrong thing. Plan your investment carefully without considering if you would get any rebate or not on that investment.
Author Bio:
The author holds a sound knowledge on investment in mutual funds. You can go through his articles which are written to guide you with the best possible way.



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