Ever heard of Investment mistakes? I bet you have, because everyone has made them. In the pursuit of creating passive income by investments, mistakes can really be a big setback for many. Sometimes, investors are driven by rumors instead of facts and that affects the financial decision of the investor, while other times it can be inherent emotions which can derail smart investment decisions. These mental hurdles which the investors often face can be overcome by identifying and eliminating them by following some simple rules.
Some of the investment hurdles that are there are :
- Myopic View
Most of the investors take a myopic view, i.e. they can not see the big picture. Even though most investors these days already know that long-term investment is the key to success, yet they get caught by the short-term highs and lows, while most of the time in order to make a profit out of the short-term fluctuation they make poor decisions with money. Thus the focus should be on investing in Index funds for a longer period of time rather than involving yourself in anything as time-consuming and precise as intra-day trading. In other asset classes like a debt which can easily solve the puzzle of How to generate passive income in India for the investors, the bigger picture is investing in ‘AAA’ rated and safe securities that have a low probability of default. Most investors fall for the trap of high returns compromising the safety of their capital.
- Emotional Imbalance
Emotion is a very strong force driving any investment decision be it in any asset class. Current market sentiments are a big factor in determining the direction of market prices. ‘Buy low and sell high’ is a simple mantra which investors need to follow. They forget and instead often get afflicted by emotion, refusing to sell peaking stocks/properties for greed and ignoring potentially promising out-of-favor options. Holding on too long to losing stocks/property in the expectation that they will rise often never happens and financially the investor moves from a position of bad to worse. The investors in the emotion of loss aversion and greed are unable to balance the wealth which puts the passive income goals out of the picture altogether.
These are just two of the many hurdles people face in learning How to generate Passive Income in India while avoiding investment mistakes. To go through the entire challenges and solutions to the same, one needs to invest in courses & one such affordable program is ‘Mission: Financial Nirvana Online’. This program can help to undo past financial mistakes and avoid future financial blunders in the pursuit of creating Passive income for life. The program also helps to learn the wise ways to invest in all asset classes as well as optimize the current wealth to enhance returns, without compromising on the risk of capital. They say investing in yourself gives the highest return on capital, so is it time to make your best investment?
To learn about how to make passive Income in more details, attend our FREE webinar, click here to register.