Process for liquidating a mutual fund
As mentioned before, study the trend of the company and its foundation along with its performance on the market even when there was a down trend.
If the slide is lesser than most other companies or the performance consistent, then you can invest in their shares. Borrowing for Investing: Worst possible mistake to be made for any investment and the most catastrophic mistake to invest in shares, is borrowing money to invest.
Do not make this mistake while investing in shares to just go for a share just because it is priced lower.
Similarly, do not think that just because the share is priced higher it will not gain much.
It is because they make these common mistakes while investing in share markets.
‘Share markets are not for everyone’ while this saying holds true, however it does not mean that it is not to be invested in at all.
The markets crashed, he lost quite a bit and then had to borrow from a relative to repay the personal loan and bear the loss, thus going in a spiraling debt trap.
If you invested today and tomorrow the market crashed, don’t think of liquidating it. As mentioned before, markets are complex and are affected by a lot of domestic and foreign factors which at some point are beyond anyone’s control.Broadly yes, you can say that due a certain political or international event the markets may swing up or down, but apart from that one cannot be sure of how much and when the markets will rise and fall.There will be ‘predictions’, ‘projections’, ‘analysis’ and what not but still you as a common investor should not think of ‘timing’ the markets.Share markets are complex and while nothing is impossible, understanding the markets will take considerable amount of time, knowledge, dedication and even then they will remain unpredictable.Biggest of market Gurus and Financial Analysts who appear in slick suits on your television daily giving their ‘expert opinions’ have fallen flat on their faces in the current market scenarios. Holding onto dud shares: If you have been investing in shares for a long time, you probably know that ultimately prices average out and you may be able to get decent returns on your investment in direct equity.
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So don’t get overconfident and think you know it all. However, this can result in holding onto to dud shares; a common mistake while investing in stock markets.