📚 Financial Education Library › Article #30
Published: 2026-06-21 · By Bhanuprakash Sardesai
30. Top 10 Common Investment Mistakes to Avoid
Investing errors are rarely intellectual — they're behavioural. The same five or six mistakes recur across Indian investors decade after decade: chasing recent winners, stopping SIPs in corrections, confusing tax savings with investing, and a dozen more. Recognising the pattern is half the cure.
1. Starting too late: Every year of delay costs lakhs or crores in lost compounding. Start today, even with ₹500. 2. Chasing past performance: Last year's top fund is rarely next year's winner. Look at 5-10 year consistency. 3. Stopping SIPs during market falls: This is when you get the best prices. Continuing your SIP through downturns is what generates superior long-term returns. 4. Not accounting for inflation: A ₹2 crore target today will feel like ₹60 lakh in 30 years. Always plan with inflation-adjusted numbers. You can instantly estimate your future returns using our free online SIP Calculator which includes inflation and shows real value.5. Over-diversification: Having 15-20 mutual funds doesn't reduce risk beyond having 4-5 well-chosen funds. 6. Ignoring taxes: LTCG tax of 12.5% above ₹1.25 lakh can significantly reduce your net corpus. Our calculator's tax toggle shows you the real picture. 7. Mixing insurance and investment: Keep insurance and investment separate. 8. Not rebalancing: Rebalance at least annually. 9. Following tips without research: Do your own research or consult a fee-only financial planner. 10. Not having an emergency fund: Without 6-12 months of expenses in liquid savings, any financial shock can force you to break your long-term investments.
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