Mutual funds investment: 5 common mistake every investors should avoid

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1. Lack of research

Blindly investing in funds without understanding their objectives and performance can lead to unfavourable outcomes. 

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2. Chasing previous performance

Relying solely on historical performance might not guarantee future success.

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3. Investing in one fund

Avoid investing all your money in a single mutual fund. Diversify across different categories to spread risk effectively.

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4. Frequent switching

Constantly changing funds in response to short-term market fluctuations can hinder your long-term returns. 

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5. Don't pick stocks directly

While mimicking your fund manager’s choices might seem like a good idea, remember that their decisions are based on a comprehensive strategy.

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