Fund Investors' Biggest Mistakes and How You Can Avoid Them

Fund Investors' Biggest Mistakes And How You Can Avoid Them Splash image
Understanding how different investments work is the first step toward profitable investing. The second is making sure you—and your mutual fund manager—always maintain the correct wealth-building mindset.

To become the best possible investor you can, it is imperative to avoid the big mistakes. Behavioral finance researchers investigate how human beings study and act on investment information and their findings can benefit investors.

Those who invest directly in stocks are particularly prone to making devastating mistakes, perhaps even experiencing Enron-style setbacks.

But mutual fund investors are not insulated against these mistakes. In fact, a fund manager can compound any mistakes made by fund owners—after all, professionals are human. Thus, it should come as no surprise that behavioral finance research makes a strong case for buying and holding low-cost, broadly diversified index funds.

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Discussion

Robert Rankin from Florida posted about 1 year ago:

This is a super lesson on investing. I hope I can follow it more in the future.
Thanks for publishing it!


Steven Duncan from New York posted about 1 year ago:

The longer I have been investing,and I have been investing for many years, the more I'm convinced that indexing is the key to a healthy portfolio and a healthy state of mind. Nice article.


K.Terry from Minnesota posted about 1 year ago:

great article. Can i pay (a fee) the author to review my several portfolios with MANY holdings in hopes of beating the market? I have been investing for decades but at my age (70s) enough is enough, need to simplify for all the reasons you mentioned and then some. Thanks
P.S. I am serious about paying for your service


Frank Corbett from Pennsylvania posted 7 months ago:


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