New Year Resolution? Avoid these 5 mutual fund investment mistakes in 2024

We are now into the new year 2024. With newer hopes and aspirations, everyone has celebrated the new year in their own way. But one thing that we all agree on is not repeating our mistakes from last year. Smart people always keep learning, as Da Vinci famously said, “Learning never exhausts the mind.”

As we are putting our steps into 2024, what mutual fund solution mistakes do you need to avoid? In this blog, we’ll discuss the same.

Avoid 5 mutual fund solutions mistakes while investing

Making mistakes is natural but learning from mistakes and not repeating them is wisdom. Knowing the following will make you wiser:

1. Don’t chase the performance of a particular fund –  Leave the chase to the authorities or films. It is always tempting when you witness a fund giving you huge returns and you feel all your dreams are about to come true. But, unfortunately, it doesn’t happen with most funds because top-performing funds change every year.
2. Don’t compare apples with oranges –  You cannot compare a movie with a sitcom. The same goes for mutual fund solutions. While you invest in mutual funds, you cannot compare a small-cap fund with a large-cap fund, as both funds have a different approach to the market. The comparison should be done based on the right peers, categories, and benchmarks.
3. Don’t invest without a goal – You make new-year resolutions to achieve them. Similarly, you cannot invest in a mutual fund without a goal. You can look for mutual fund solutions to have clarity on how to achieve your financial goals this new year.
4. Don’t invest without a financial advisor – While welcoming this new year, it is advisable to seek professional help while investing in mutual funds. Many reputed firms and financial advisors provide expertise in mutual fund solutions.
5. Don’t set your expectations too high – Whether in life or mutual fund investments, you cannot set expectations that are beyond the realm of reality. You can achieve your financial goals, but they need to be realistic and well-planned.

Things you need to consider while investing in mutual fund solutions:

We have mentioned a few pointers that you need to avoid while investing. Here are a few things you can apply this year during the new year.

• Financial goals – This new year, keep your financial goals in mind and stay focused while you invest.
• Balance your portfolio – Things change with time. You need to review your portfolio and change it if necessary.
• Investment horizon – Remember your investment horizon, don’t deviate from your goals.
• Diversification – If you haven’t diversified your asset allocation in the past year or have created a diversified portfolio, then you need to view it and diversify accordingly.
• Avoid behavioral investing – Emotions are good to have, but it will be great if you keep them out of your investment strategy. Try to avoid them while investing.

 If you are wondering what the traits of equity and debt funds are, you can read our blog by clicking here.

Conclusion

You have 366 opportunities in 2024, so take full advantage of them and avoid mistakes while investing in mutual fund solutions. 2023 is a story of the past; you need to look forward with a more positive frame of mind.