Financial traps you should avoid
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Dipankar Jakharia
Thirteen years ago, when I started writing on personal finance, the subjects were very different. Eight times out of ten, I was introducing a new concept, explaining it, and learning along with my readers. Today, I find myself writing more about what not to do than about what to do. The information revolution has put an endless stream of financial content at our fingertips. Unfortunately, information and misinformation now travel together. As a result, I increasingly feel the need to warn, caution, and reflect rather than simply introduce new concepts. While I would still love to bring groundbreaking ideas and innovative personal finance strategies to your attention, what I see around me are recurring financial mistakes that continue to hurt investors. Today, I want to discuss two such traps.
The first is over-diversification. How many mutual funds do you really need?
(To be contd)
Thirteen years ago, when I started writing on personal finance, the subjects were very different. Eight times out of ten, I was introducing a new concept, explaining it, and learning along with my readers. Today, I find myself writing more about what not to do than about what to do. The information revolution has put an endless stream of financial content at our fingertips. Unfortunately, information and misinformation now travel together. As a result, I increasingly feel the need to warn, caution, and reflect rather than simply introduce new concepts. While I would still love to bring groundbreaking ideas and innovative personal finance strategies to your attention, what I see around me are recurring financial mistakes that continue to hurt investors. Today, I want to discuss two such traps.
The first is over-diversification. How many mutual funds do you really need?
(To be contd)