What Investment mistakes you made that you want others to avoid?

[becool773]

I think you mentioned earlier that you can bet on FAANG being around 20 years later in the future. My counterpoint will be that 20 years ago, Facebook and Netflix did not exist. Apple was all but written off. There was no guarantee that Google would win against Yahoo or Microsoft in search. So I'll say it's risky. If you're fine with the risk, go for it. I probably sound like an old man, but technology is changing very fast, two years ago no one would have bet that Zoom could have given so much returns and become an office staple. 20 years ago, when I was trying to download pron on an MTNL dial-up connection, I never imagined that I would be able to stream 4k content on Netflix.

PS. One advantage FAANG have is deep pockets, so they can buyout potential competitors that may kill them (eg. Instagram or Orkut).

Got your point.
https://freefincal.com/motilal-oswal-nasdaq-100-fund-of-fund/ is the tracking error and liquidity issue a turn off for this fund?

Also when you look into ETFs. there is an “agency cost” associated with them. that is the ETF managers have incentives to push their favorable companies into the etf.

But direct stock investments have less costs involved, isn't that so?

That is probably why I have been discouraged to invest IN FAANG. Have to dig more though.


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Just on time:

Mirae Asset makes a global foray with two FANG+ funds

It is launching an ETF tracking the NYSE FANG+ Index as well as an FoF tracking the same.This is a good opportunity for Indians to invest in the world's greatest innovators such as Apple, Tesla

www.livemint.com

What does Munger mean with that? The audio isn't audible enough, traveling and without headphones.
Every AMC is launching these foreign FoF's and ETF's every now and then. This is why I feel that one should invest directly in International stocks?

I don't have any clue about the fees/taxes involved and other hidden sinister ****ups. Will dig more for sure.

US brokerage accounts | Pricing | Vested Finance

If you need more information about US brokerage accounts, pop over here to select a plan to invest in US stocks

vested.co.in

Costs of Investing

international.schwab.com

2020 - BDO

www.bdo.in

trust me, as a it guy i got shitton of free time at hand. i think everyone has. this is just like spending time on social networking except it makes money. my story, after bag holding tsla for over 3 years through negative numbers it blew up last year. i was like it doesn’t make any sense why it is going down to it doesn’t make any sense why it’s going up. also my first gold mine was not tsla but amd from 9usd. but i didn’t have patience to ride the run. did mistakes like stop loss etc...
my tsmc went up by 100% in just over 6 months. so yeah. definitely more than index funds.

Which platform are you using to invest in international stock markets?
A question about a friend who is planning to immigrate abroad, for this purpose of funding in one's account liquid cash, fd's and mutual funds are considered. Why are stocks, both domestic and international, not considered?

 

[Rockfella]

But direct stock investments have less costs involved, isn't that so?

It also means we have to choose stocks ourselves. This can lead to losses or massive gains. As boo said stocks become popular once they have already made money. Predicting multibaggers is not impossible but .. involves risks too.

 

[booo]

But direct stock investments have less costs involved, isn't that so?

Agency Costs Are Internal Expenses Paid to Compensate Agents for Work

Agency Costs are an internal cost which arises from, and requires payment, to an agent who acts on behalf of a principal in some situations.

www.investopedia.com

simple words... agency cost == conflict of interest. agency cost is a concept where 'financial advisor' wants you to buy a stock because 'he thinks' it will make money but behind the scenes he gets kick backs from the company since the price goes up.

 

[alekhkhanna]

Well, if you've invested with Citi, get out.

Citibank to exit retail banking in India under global plan

The consumer banking business comprises credit cards, retail banking, home loans and wealth management. The bank will be exiting the segment in India after more than three decades. The bank has 35 branches in the country and employs approximately 4,000 people in the consumer banking business.

economictimes.indiatimes.com

 

[nitin_g3]

Well, if you've invested with Citi, get out.

Citibank to exit retail banking in India under global plan

The consumer banking business comprises credit cards, retail banking, home loans and wealth management. The bank will be exiting the segment in India after more than three decades. The bank has 35 branches in the country and employs approximately 4,000 people in the consumer banking business.

economictimes.indiatimes.com

I'm holding both an account and a credit card. Haven't received any official email from citi about this.

 

[nimod]

Well, if you've invested with Citi, get out.

Citibank to exit retail banking in India under global plan

The consumer banking business comprises credit cards, retail banking, home loans and wealth management. The bank will be exiting the segment in India after more than three decades. The bank has 35 branches in the country and employs approximately 4,000 people in the consumer banking business.

economictimes.indiatimes.com

Com'on, they are not running away.
And surely they will exit in a decent manner.
Don't panic.
Very probably, they will sell the business to someone and then exit.

 

[gopal_agrawal]

Mirae Asset is launching a new ETF - NYSE FANG+. Is it a good choice to invest?

 

[rushab_rdx]

Mirae Asset is launching a new ETF - NYSE FANG+. Is it a good choice to invest?

Yes a sip along side NIFTY ETF And NIFTY JUNIOR BEES ETF.

 

[gopal_agrawal]

Yes a sip along side NIFTY ETF And NIFTY JUNIOR BEES ETF.

I have multiple SIP in various MF, planning to do my 1st investment in ETF.
NYSE FANG+ ETF is currently NFO so it has minimum investment of 5k.

 

[kidrow]

Since the title talks about investing mistakes to avoid, ... In the context of direct stock market investing, I think the biggest takeaway for me would be to get into it as early as possible with as little as possible.

Think even 2k, 5k, 10k. Not because even that little is going to make you a crorepati, but because you will learn market behaviour somewhat. That experience will then help you handle things a lot better when you do start having a larger disposable income, & start investing more.

It'll help you guage your own temperament & style. For eg., I tend to try & cut my losses. My friend tends to simply hold if the loss is too large.

The reason I exit with a loss, even a large one, is because I've seen things can worsen if you don't & I won't be able to sleep at night, knowing that I should have exited. My friend, on the other hand, holds throughout the fall, waiting for the rise back up. This is because he has seen stocks go down by 50-60% & come right back up. He can sleep well despite stocks in his portfolio being down by 50-60%.

The period where you are invested with the smaller sum helps you make plenty of mistakes without it being too costly, while also helping you understand yourself, your investing style, & market behaviour. It helps you try out different styles - value investing, growth investing etc. & also help you see the pitfalls - value traps, pump & dump. You'll see things that theoretically don't make sense. For instance, how valuation yardsticks can be different in reality as opposed to what it theoretically should be. (Apparently, even John M Keynes struggled with currency trading initially.)

So if it's direct stock market investing, just get in as early as you can with money you can actually lose a few times over. Do so for 5-6 years. Then ramp up with money you are afraid to lose.

 

[Ramadhir Singh]

people who are investing on MF, what platform you guys use?
back in time i was using fundsindia.com that seems to be redundant these days.

thinking to stat MF again. leaning towards kuvera. is it good ( not too much tracking and sharing your date to 3rd part who wil call 24x7 to suck my blood) ?

 

[logistopath]

^^ Started with fundsindia, which offers only regular plans. Recently shifted to Kuvera, mainly for tracking my portfolio. For investments, I now rely on MFUonline. Their interface is not so good, but they offer a lot of conveniences. For example, when I had to change my bank account details, all I had to do was update my profile in MFonline. The new bank account got reflected in all the fund houses.

 

[raksrules]

people who are investing on MF, what platform you guys use?
back in time i was using fundsindia.com that seems to be redundant these days.

thinking to stat MF again. leaning towards kuvera. is it good ( not too much tracking and sharing your date to 3rd part who wil call 24x7 to suck my blood) ?

I use AMCs own website and yes it is pain to check them separately but I do that once a month only to update my google sheets tracker.

 

[Ramadhir Singh]

I use AMCs own website and yes it is pain to check them separately but I do that once a month only to update my google sheets tracker.

isn't we have to do paperwork for all of them individually ?
im looking at few different houses, franklin, hdfc, dps, SBI.

haven't started the research yet.. will be returning after 4-5yrs, earlier i use to track my portfolio at valueresearchonline and was using funds India.

Also, since the PPF ( i have one and wil continute it for anbother decade) rates are doing down what are the investment option do we have these days which provides us the luxury of compounding.

direct stock investment is out of scope, due to time and knowledge limitation.

 

[raksrules]

isn't we have to do paperwork for all of them individually ?
im looking at few diffrent houses, franlin, hdfc, dps, SBI.

haven't started the research yet.. will be returning after 4-5yrs, earlier i use to track my portfolio at valueresearchonline and was using funds India.

Also, since the PPF rates are doing down what are the investment option do we have these days which provides us the luxury of compounding.

The KYC part is to be done only once and all fund houses recognize it. But yes for things like linking bank account, configuring their SRN / URN in my bank account, it has to be done separately. I was not aware about a common option before so I didn't do it before and I don't use my broker's website to invest in mutual funds as they store in demat format (not sure if it matters honestly).

Can I still register on kuvera / upstox / zerodha for mutual funds and will they start showing me the funds under their website for the AMCs for which I have ongoing SIPs?

 

[gopal_agrawal]

I am using Paytm money for MF and it seems good. Not sure about tracking or data sharing.

 

[Ramadhir Singh]

Can I still register on kuvera / upstox / zerodha for mutual funds and will they start showing me the funds under their website for the AMCs for which I have ongoing SIPs?

i think it can be possible.. since i don't have first hand experience yet, cant say with confidence.
zerodha coin is for MF, else thats best for shares. some details are mentio in the table here - https://indiainvestments.gitbook.io/content/faqs/mfs/best-mutual-fund-app-for-investments

when i was using fundsindia, i use to get my statements direct from amc, and email from eCMS/KARVY -- so i think move from one platform is possible... we have to explore the option.

edit: https://groww.in/blog/switch-sip-groww/
this platform allows it, but they are too new in market .. so i personaly wont be trusting them.

 

[goDofWar_skr]

people who are investing on MF, what platform you guys use?
back in time i was using fundsindia.com that seems to be redundant these days.

thinking to stat MF again. leaning towards kuvera. is it good ( not too much tracking and sharing your date to 3rd part who wil call 24x7 to suck my blood) ?

Been using Kuvera since 3+ years.. no issues at all
Defenitely no sharing my data to 3rd party since I never received any marketing calls about MFs anytime.
ETMoney app is also looks good but somehow I dont trust it

 

[Ramadhir Singh]

^^ Started with fundsindia, which offers only regular plans. Recently shifted to Kuvera, mainly for tracking my portfolio. For investments, I now rely on MFonline. Their interface is not so good, but they offer a lot of conveniences. For example, when I had to change my bank account details, all I had to do was update my profile in MFonline. The new bank account got reflected in all the fund houses.

strange you message didn't appeared last time, it only visible to me only now.
mfonline - "Bhaktmali Services Pvt Ltd" this one ?

Been using Kuvera since 3+ years.. no issues at all
Defenitely no sharing my data to 3rd party since I never received any marketing calls about MFs anytime.
ETMoney app is also looks good but somehow I dont trust it

ETmoney - don't want to trust them (gut feeling).
Plus to use their website i just had to lower the protection level of ublock origin. lastly seem like an APP only platform.. i dont do any financial thing in mobile.. im not in this app installing business.

Looks Kuvera is the path to go.

 

[logistopath]

strange you message didn't appeared last time, it only visible to me only now.
mfonline - "Bhaktmali Services Pvt Ltd" this one ?

Sorry.. Typo. MFUonline.
Check this site for the process to open eCAN : https://www.mfuindia.com/
It might take about 2 to 3 days for the KYC to complete and your account to be ready. After that, you can login here and buy/sell MFs - https://www.mfuonline.com/