{"id":5128,"date":"2021-10-12T18:06:24","date_gmt":"2021-10-12T12:36:24","guid":{"rendered":"https:\/\/www.tickertape.in\/blog\/?p=5128"},"modified":"2022-05-24T19:05:10","modified_gmt":"2022-05-24T13:35:10","slug":"6-evil-investment-habits","status":"publish","type":"post","link":"https:\/\/www.tickertape.in\/blog\/6-evil-investment-habits\/","title":{"rendered":"6 Evil Investment Habits to Slay This Dussehra"},"content":{"rendered":"\n<p>It\u2019s that time of the year again where joy and exuberance exude out of society. There\u2019s music, chants, and symbolic gestures commemorating Lord Ram\u2019s triumph over the 10 headed demon King, Ravana. There\u2019s a lot to take away from this mythical classic that can be applied to several aspects of life including finance. As symbolism, we\u2019d like to talk about 6 investment habits you can slay this Dussehra to regain your riches.<\/p>\n\n\n\n<p>Dussehra marks new beginnings! This is an opportunity to build new habits that can change the course of your future. One of the most imperative habits to build is that which helps with your financial security. Below are some of the <a href=\"https:\/\/www.tickertape.in\/blog\/types-of-investment\/?utm_source=blog&amp;utm_medium=article\">investment<\/a> habits you can change this Dussehra to help manage finances better in your life.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.tickertape.in\/blog\/6-evil-investment-habits\/#Not-diversifying-investments\" title=\"Not diversifying investments\">Not diversifying investments<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.tickertape.in\/blog\/6-evil-investment-habits\/#Holding-too-much-cash\" title=\"Holding too much cash\">Holding too much cash<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.tickertape.in\/blog\/6-evil-investment-habits\/#Avoiding-advisory-fees\" title=\"Avoiding advisory fees\">Avoiding advisory fees<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.tickertape.in\/blog\/6-evil-investment-habits\/#Falling-victim-to-market-noises\" title=\"Falling victim to market noises\">Falling victim to market noises<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.tickertape.in\/blog\/6-evil-investment-habits\/#Debt-denial\" title=\"Debt denial\">Debt denial<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.tickertape.in\/blog\/6-evil-investment-habits\/#Taking-out-a-loan-to-invest\" title=\"Taking out a loan to invest\">Taking out a loan to invest<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\" id=\"not\"><span class=\"ez-toc-section\" id=\"Not-diversifying-investments\"><\/span><strong>Not diversifying investments<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>One of the most common bad investment habits is poorly diversifying your <a href=\"https:\/\/www.tickertape.in\/blog\/portfolio-investment\/?utm_source=blog&amp;utm_medium=article\">portfolio<\/a>. This means that you put all your eggs in one or very few baskets. In other words, all your money is parked in a single investment or asset class. This is a risky investment habit that can cause financial turmoil. Talk about having egg on your face!<\/p>\n\n\n\n<p>In contrast, diversified portfolios contain a good mix of a variety of investments. This helps reduce <a href=\"https:\/\/www.tickertape.in\/blog\/mitigating-portfolio-risk-through-diversification\/?utm_source=blog&amp;utm_medium=article\">risk<\/a> and financial downswings caused due to the <a href=\"https:\/\/www.tickertape.in\/blog\/volatility\/\">volatility<\/a> of a specific asset class. Portfolios must be diversified even in widespread investment categories such as stocks. They may represent a major part of your portfolio but it is important to ensure that you have put your money to work in other asset classes.<\/p>\n\n\n\n<p>It\u2019s imperative that you discover a sweet spot between risk and reward. This would secure your investments while still being able to achieve your financial goals.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"cash\"><span class=\"ez-toc-section\" id=\"Holding-too-much-cash\"><\/span><strong>Holding too much cash<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>It\u2019s crucial to have access to liquid or near-liquid <a href=\"https:\/\/www.tickertape.in\/blog\/using-and-rebuilding-an-contingency-fund\/?utm_source=blog&amp;utm_medium=article\">cash for emergencies<\/a> and unexpected financial disruptions. Furthermore, it\u2019s a good idea to have cash handy for investment opportunities. That\u2019s right! It\u2019s true what they say. You\u2019ve got to make your money work for you.&nbsp; But having too much cash lying around can be counterproductive in your quest to generate more income.<\/p>\n\n\n\n<p>One of the biggest hardships of holding too much money is <a href=\"https:\/\/www.tickertape.in\/blog\/flat-interest-rate-vs-reducing-balance-interest-rate\/?utm_source=blog&amp;utm_medium=article\">interest rates<\/a>. The returns you get by holding cash in banks is low. The more money you have laying around, the more you\u2019re potentially losing by not investing in additional asset classes. This may end up costing you a lot of money annually. Therefore, it is a wise investment decision to reduce your cash holdings for emergencies and unexpected financial requirements.<\/p>\n\n\n\n<div class=\"wp-block-image is-style-default\"><figure class=\"aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"4584\" height=\"11049\" src=\"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2021\/10\/Evil-habits-infographic-2.png\" alt=\"\" class=\"wp-image-5148\" srcset=\"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2021\/10\/Evil-habits-infographic-2.png 4584w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2021\/10\/Evil-habits-infographic-2-124x300.png 124w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2021\/10\/Evil-habits-infographic-2-425x1024.png 425w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2021\/10\/Evil-habits-infographic-2-637x1536.png 637w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2021\/10\/Evil-habits-infographic-2-850x2048.png 850w\" sizes=\"(max-width: 4584px) 100vw, 4584px\" \/><\/figure><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"fees\"><span class=\"ez-toc-section\" id=\"Avoiding-advisory-fees\"><\/span><strong>Avoiding advisory fees<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>One of the paradoxes in our country is that we tend to bargain for Rs. 10 with the vegetable vendor but don\u2019t hesitate for one second to buy a vegetable salad for Rs. 300. Similarly, we tend to spend a lot of time and money to maximize a particular investment\u2019s potential but want to avoid, at all costs, paying an advisory fee to experts. This can conceivably generate way more income for you.<\/p>\n\n\n\n<p>The old saying, \u201cpenny wise and pound stupid\u201d is apt for this bad investment habit. Don\u2019t look at saving a few hundred rupees only to miss out on opportunities that could earn you thousands.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"noises\"><span class=\"ez-toc-section\" id=\"Falling-victim-to-market-noises\"><\/span><strong>Falling victim to market noises<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A common investment habit is falling victim to market noises. In other words, blindly basing your activities on information that can mislead or misrepresent underlying facts. A novice investor trades stocks based on market noises in order to make a quick buck. However, this is not a good strategy as it can lead to financial downswings.<\/p>\n\n\n\n<p>A prudent investor, however, focuses on the <a href=\"https:\/\/www.tickertape.in\/blog\/fundamental-analysis-of-stocks\/?utm_source=blog&amp;utm_medium=article\">fundamentals<\/a> of the company and sector, and doesn\u2019t pay much attention to market noises. Media sensationalism, in most cases, can cause you to panic and overreact. It is therefore important to ensure that you stay disconnected from misleading or unreliable information while making investment decisions.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"denial\"><span class=\"ez-toc-section\" id=\"Debt-denial\"><\/span><strong>Debt denial<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Yes, debt denial is a habit and it\u2019s important to break free from it to become a successful investor. In simple terms, this is a refusal to believe that there is a problem of debt in your life. Let\u2019s face it; if you\u2019re working against one of the strongest financial forces, compounding interest, it\u2019s going to be an uphill battle to generate wealth. The first step to flipping the script of your finances is to honestly evaluate your situation and stop denying debt!<\/p>\n\n\n\n<p>Rule of thumb; if you don\u2019t have a plan on how you\u2019re going to settle your debts, formulate a plan today! You can complement this habit by investing any additional money into financial assets such as stocks. The returns you reap from investing in the <a href=\"https:\/\/www.tickertape.in\/blog\/how-to-invest-in-shares\/?utm_source=blog&amp;utm_medium=article\">stock market<\/a> can help offset the interest you\u2019re losing out from repaying your debt.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"loan\"><span class=\"ez-toc-section\" id=\"Taking-out-a-loan-to-invest\"><\/span><strong>Taking out a loan to invest<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>One of the more grievous sins of financial investments is taking out a loan to <a href=\"https:\/\/www.tickertape.in\/blog\/why-should-you-prioritise-investing\/\">invest<\/a>. There is an argument that you could take out a loan to invest if the investment yields more return than the interest you pay on the loan. Although this may make sense on paper, the fact is that some investments are risky. There is a possibility that you don\u2019t make any returns on the investment, or even worse, you lose part of your investment.<\/p>\n\n\n\n<p>What\u2019s worse? It\u2019s inconceivable to find a loan with interest rates lesser than a relatively safe investment. Even if you do find one, the difference between the returns and the interest is likely to be so minuscule that it would hardly be worth your efforts.<\/p>\n\n\n\n<p>A few good habits performed regularly can change the course of your life. Be the hero of your life and regain control of your finances by slaying these 6 evil investment habits from your financial rituals.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you ever feel that your riches have been going farther away from you, here are 6 habits you can get rid of this Dussehra to reunite with your riches. <\/p>\n","protected":false},"author":27,"featured_media":5138,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_lmt_disableupdate":"no","_lmt_disable":"no","footnotes":""},"categories":[8,1759],"tags":[875],"acf":[],"modified_by":"Aradhana Gotur","jetpack_featured_media_url":"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2021\/10\/Slay-evil-investing-1-2.png?wsr","_links":{"self":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/5128"}],"collection":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/users\/27"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/comments?post=5128"}],"version-history":[{"count":5,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/5128\/revisions"}],"predecessor-version":[{"id":8721,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/5128\/revisions\/8721"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media\/5138"}],"wp:attachment":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media?parent=5128"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/categories?post=5128"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/tags?post=5128"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}