Aimless Investing: Defining a SMART goal before investing will not only help you in assessing your risk appetite, but also in selecting the best funds for your needs.
Making rash decisions: Short term outlook must be avoided and the investor must stick to his goals even during bullish/bearish markets.
Using only NAV as an indicator of fund performance: Never buy a fund solely on the basis of its NAV. Its performance is also affected by factors like management decisions, portfolio holdings, etc.
Lack of review: Not reviewing fund performance in a timely manner can lead to losses.
Investing in too many funds: This may lead to the inclusion of many underperforming funds in the portfolio, reducing the overall return generated.
