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

becool773 said:
Why did you stop?
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I didn't want to invest in both but there is no hard and fast rule, i can start SIP again in that.
I went to this link.... https://www.insurancefunda.in/lic-jeevan-saral-plan-165/

The plan is Jeevan Saral 165 where my dad had started putting money and I entered all the information and it does give me surrender value which is 3.16L while have paid 2.42L. Does this seem right? It is more than what I paid till now. I see that in initial years, surrender value is less than premium paid but that is the now the case now.

If the above is true, I may actually stop the policy as the maturity / premium paying term is too long.
 
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get a Demat account.... start buying top 5 companies share/equity of the different sector of the economy....stick with them...long term benefits are exponentially high in r/o to FDs and PPF. simply think about it like this....once your PPF/ NPS matures what will u do with that huge amount....you wont be able to suddenly invest it for good returns....you probably will have a house already to live in....therefore you will be holding a good amount in your hand and no way to invest it.......so instead of accumulating that fund till your retirement, try to get your portfolio in the market a stable base so that you can eat up on the dividends and bonuses given by the companies from time to time......plus in case any emergency occur you can sell your shares for the funds.

A simple thing about economy ....it will always go up in the long term so connect with every aspect of it.
 
Good informative thread. Looks like many of us are in similar boats.
Here's my experience:
Good: Started term insurance at age 30. Started PPF at age 35, and investing at least 50K each year. Started ELSS MFs since age 34. Started family floater medical insurance since age 35.
Bad: Do not own a house or a car. Not interested in either, so may be it is not so bad.
To do: Seriously increase the proportion of savings. Right now I just get away with investing what is required for 80C exemption. But at age 40, it looks very much lacking, and I want to increase it to at least 20% of my income.

Goal based investment is something that even I am not able to pursue. All I want is some funds for my son's college education 10 years down the line, and a retirement that wouldn't be a burden on him. A foreign vacation once in 5 years would be an added bonus.
 
raksrules said:
I didn't want to invest in both but there is no hard and fast rule, i can start SIP again in that.
I went to this link.... https://www.insurancefunda.in/lic-jeevan-saral-plan-165/

The plan is Jeevan Saral 165 where my dad had started putting money and I entered all the information and it does give me surrender value which is 3.16L while have paid 2.42L. Does this seem right? It is more than what I paid till now. I see that in initial years, surrender value is less than premium paid but that is the now the case now.

If the above is true, I may actually stop the policy as the maturity / premium paying term is too long.
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It will be equal to or less and if you are lucky a little more than the premium that you have paid. Ask on the number that I shared.
 
becool773 said:
It will be equal to or less and if you are lucky a little more than the premium that you have paid. Ask on the number that I shared.
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Yes definitely will do that. Seems that since I have been investing since last 10 years, it has reached a point where the SV is little more than the invested values.
So with a policy that is expected to pay me 24L (in 2046) on my 8L "investment" which I will only complete in 2046, I personally don't see point in putting 24K per year.

And to top it, my wife has same policy but her policy matures and policy period ends in 2036 so she will pay less than me (6L) but also get less (14.4L). The time horizon is too high I feel in both cases and it is better to stop the policies and surrender if value I get is good (no or minimal loss on principal).
 
alekhkhanna said:
I'll recommend: https://indiainvestments.github.io/
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this mostly covers MF related queries.
For Stock, the articles on Groww ( https://groww.in/p/investment-basics ) covers many aspects (like how to Read the Annual Report of a Company, What are those various Ratios to look for before selecting any stock to buy etc) . I am yet to start actual investment in stocks though. :P Don't want to only to rely on "friends" for stock selection.

Btw, is there any recommended books to read?
 
raksrules said:
Yes definitely will do that. Seems that since I have been investing since last 10 years, it has reached a point where the SV is little more than the invested values.
So with a policy that is expected to pay me 24L (in 2046) on my 8L "investment" which I will only complete in 2046, I personally don't see point in putting 24K per year.

And to top it, my wife has same policy but her policy matures and policy period ends in 2036 so she will pay less than me (6L) but also get less (14.4L). The time horizon is too high I feel in both cases and it is better to stop the policies and surrender if value I get is good (no or minimal loss on principal).
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Bade bhai please calculate xirr and do remember loose a finger now or a hand later analogy. That policy is CRAP.
Is anyone here investing in foreign stocks from India?
 
raksrules said:
He is in US so I guess it is easier for him. For people in India, we have to go through vested etc.
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never knew about vested. are there any other ways to get into us stock market?

us market is dog eat dog world. the signal to noise ratio in news and media is crazy.
 
mathrisk said:
What is general rationale behind having goals for investment?
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Having planned allocations allows one to manage risk better.
There is no end to human greed, the mind always wants more. Attaching a goal to a particular gives metrics and clarity.
Eg: What's the minimum amount required, Is the target amount achieved?

We don't ever travel without knowing the destination, similarly, we make plans for most other important things in life, why should investments be any different? Metrics in my opinion is just as important for personal goals, as professional goals.
booo said:
never knew about vested. are there any other ways to get into us stock market?
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Depends on the quantum of investment.
Below 25L Motilal Oswal S&P 500, Nasdaq 100 and other international funds are useful.
For corpus >25L Charles Schwab is much better.

Any direct investment in the US will need your attention on -
* Currency conversion (5% TCS, LRS limit - $250,000 per year).
* US Tax compliance
* Indian Tax compliance
* CA expense
* Fund expense

It is best to understand these things well before beginning as penalties can be huge.
peachesontheway said:
start buying top 5 companies share/equity of the different sector of the econom
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I would recommend going with the Nifty50 or similar Nifty index instead. Much less headache and expense.
 
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booo said:
never knew about vested. are there any other ways to get into us stock market?
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INDMoney app allows for US Stocks purchase from India using DriveWeatlh. But the process is slow and expensive. Bank transfer itself costs about ₹1000+GST. Not worth unless you are investing in lakhs.

Groww is also planning to launch US stocks so let's see how that goes.
 
becool773 said:
What if in the 7th year we have India's lost decade here?
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Then we keep on investing even more OR at least don't withdraw any money. After 2008 crises and covid last year market levelled out within 1/2 years. People who withdrew funds were at a huge loss, the ones who remained invested eventually gained.

Before 2008 crises:
1.JPG

When it hit:
2.JPG

Back up in 2010!
3.JPG


Before Covid.
4.JPG

After covid struck:
5.JPG

Back up and .. rocket run? :)
6.JPG
 
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raksrules said:
Yes definitely will do that. Seems that since I have been investing since last 10 years, it has reached a point where the SV is little more than the invested values.
So with a policy that is expected to pay me 24L (in 2046) on my 8L "investment" which I will only complete in 2046, I personally don't see point in putting 24K per year.

And to top it, my wife has same policy but her policy matures and policy period ends in 2036 so she will pay less than me (6L) but also get less (14.4L). The time horizon is too high I feel in both cases and it is better to stop the policies and surrender if value I get is good (no or minimal loss on principal).
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Experts feel LIC is a slow burn scam/doesn't have much worth. I will never get one. Try to find a way out :neutral:
 
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Rockfella said:
the ones who remained invested eventually gained.
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Markets can remain irrational for a long time, the period from 1995 to 2004 on your graph has a different story.
But yes, in general, equities are the best option for a retail investor to beat inflation and have a chance at building wealth.

Government policies matter a lot, so it makes some sense to hedge against geopolitical risk as well.
If the same person had invested in the S&P 500 during the same period, returns would be much higher.
 
JMP said:
Markets can remain irrational for a long time, the period from 1995 to 2004 on your graph has a different story.
But yes, in general, equities are the best option for a retail investor to beat inflation and have a chance at building wealth.

Government policies matter a lot, so it makes some sense to hedge against geopolitical risk as well.
If the same person had invested in the S&P 500 during the same period, returns would be much higher.
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It can and always be .... just like everything else :) 10 years some other calamity might pop up.
 
try to look at BSE/ Nifty and google about the top shares being displayed there........you can also go for new startup shares which u might thing will grow in future....like infibeam which deals with the ccavenue payment system.......read read read and than read some more. .... bit by bit you will get to know things. Read about G-Secs/ SDLs, bonds etc broaden your knowledge base and you will get to know how simple fraudulent msgs over whatsapp can lead to drop of a share price over night.
 
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