In the equity market, investors often fall prey to self-induced mistakes that can lead to wealth destruction. Half-baked knowledge, such as blindly diversifying into numerous stocks or funds based on random sources, can be detrimental. Many investors duplicate efforts by buying only large-cap stocks or funds, neglecting the essence of diversification. Forgetting asset allocation plans and panicking during market swings are common errors, often leading to premature exits or reluctance to rebalance portfolios. Even high-net-worth investors are not immune to such mistakes, often lured by exotic yet risky investment options. Awareness and caution are essential to avoid falling into these traps and safeguarding one’s wealth.
Avoiding Pitfalls: Common Self-Induced Mistakes in Equity Market Investing
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