When most of the top 19 financial planners of India point to some common investor mistakes, it’s a good idea to listen. The same planners had alerted us earlier about the mistakes investors make with mutual funds. You can read it here: bit.ly/2p2Va8U. Here are six investing mistakes people commonly make. These are money traps that you would do well to avoid.
1. Mixing insurance and investment
Mixing life insurance and investment is not a smart way to manage risk and money. Twelve of 19 financial planners said most investors mix the two. Investors use both unit-linked insurance plans (Ulips) and traditional policies or endowment plans to do this. With benefits and costs unclear in traditional plans, the logic of these plans appeals only to the agents who get high upfront commissions.
