Starting your investment journey can be exciting—but it’s also full of pitfalls. Many first-time investors make avoidable mistakes that can lead to losses and frustration. Here are the top 5 to watch out for:
1. Chasing Hot Tips
Jumping on trending stocks based on WhatsApp forwards or social media hype is a recipe for disaster. Always rely on research-backed analysis.
2. No Clear Financial Goals
Investing without knowing what you’re investing for—retirement, a house, education—leads to confusion and poor decisions.
3. Ignoring Risk Tolerance
A young IT professional and a retiree shouldn’t be taking the same investment risks. Know your comfort level and invest accordingly.
4. Over-diversifying or Under-diversifying
Having too many stocks or just a couple can hurt your portfolio. The sweet spot is a curated, balanced mix.
5. Not Holding Long Enough
Many sell at the first sign of volatility. Wealth is built through patience and compounding, not panic selling.
Final Thoughts
Working with an expert like OVAM helps you sidestep these traps. Our research-backed, SEBI-compliant strategies are made to protect capital and grow wealth steadily.