Famous Quotes from Peter Lynch Peter Lynch (born January 19, 1944) is an American investor, mutual fund manager and philanthropist. As the manager of the Magellan Fund at Fidelity Investments between 1977 and 1990, Lynch averaged a 29.2% annual return, consistently more than doubling the S&P 500 stock market index and making it the best-performing mutual fund in the world. During…
Insurance – The most undermined part of our portfolio! While we are are young and healthy, we never think of taking insurance! Our lives revolve around our loved ones, but we fail as a caretaker if we are not able to make sure that they are taken care of whether or not we are around!…
9 mistakes to avoid while buying life insurance:
1. Buying guaranteed insurance plans: Such plans usually come with lower returns and hence you tend to lose in the long run.
2. Buying in the name of minor: This for sure will reduce the premium but the entire objective of insurance would be defeated. Do not mix insurance and investments.
3. Buying too many policies: This not only increases the administration burden on one, but even results into high administration charges getting paid to the insurers and their agents.
Winning traits of a sporting giant:
1. Be humble
2. Build up on small beginnings
3. Have faith and conviction in what you believe in.
4. Learn continuously.
5. Stay calm in turbulent times.
5 common myths about mutual funds busted:
1. It requires large sum of money to invest: No, You can start with as little as Rs. 500 a month.
2. SIPs mean you will never lose money: In long run, you will not, but in short term, it is normal to rise and fall.
3. You need to be an expert: People you are entrusting your money with are the experts whom you need to believe.
4. Mutual funds only invest in equities: MFs as well invest in liquid funds, debt funds and hybrid funds which are a great form of diversifying your portfolio.
5. You can’t go wrong with five star rated funds: Past performance is no indicator of future performance.
8 deadly sins of investing in stock markets:
1. Herding: Do not simply do what others are doing. Else you will end up buying high and selling low.
2. Lack of diversification: Never put all your eggs in one basket.
3. Optimism: Be practical, not emotional.
4. Mental Accounting: To justify success, one tends to separate the performance of different investments.
5. Regret of failure: Due to regret of failure in in the past, once doesn’t take necessary action.
6. Loss aversion: This is also called panic selling. Do not ever sell in panic of loss. Make an informed and wise decision.
7. Anchoring: Instead of adaption to a changing market, one continues to focus on past events.
8. Narrow framing
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