Investing Mistakes I Did

Till 2017 I was only into fixed income instruments. I entered in equities gradually in 2018, made a lot of mistakes (Investing on tips is one of the biggest mistakes I did), I figured by the end of 2018 if you know nothing index fund is the way.

Started investing through SIPs in Index funds, Invested in Lumpsum also. In the meanwhile, I started learning about how to pick an individual business for investing, attended some of the best and the worst national and international courses and by the time I was done with all this and just started picking the right stocks the pandemic happened. 

It was more or less like a lottery for investing as some of the best businesses were available at low prices. Started accumulating them and enjoyed the process.

By nature I am risk-averse, the only principle I followed is the safety of capital. From 100% into fixed income now I am 30% equity and 70% still in fixed income, gradually I am learning things and now I am planning to make it 60 to 70% in equity. It doesn’t mean I will reduce the amount invested in Fixed Income Instruments, The next innings of active income will go to equity more.

How I am feeling now?

As I mentioned earlier I am risk-averse, I feel fearful right now by seeing over-optimism (i may be wrong), but I will follow the process.

Old SIPs In Index fund and 1 (the only one) Active Mutual Fund will continue.

Will increase my Index fund SIP.

Will keep on looking for fairly valuing amazing businesses. (Will not over-diversify for sure).

Will keep on investing in businesses which I earlier own.

Will not reduce by old Fixed Income Balance (Can be used in a fall like March).

Instead of FOMO will follow POMO (Pleasure of Missing out).

Will keep some amount in opportunity fund (in liquid and short term funds), to be utilised in case of another big fall.

I mostly stay away from small-cap and mid-cap also is not my cup of tea.

I am not a Stock Market Guru, I am a life long learner.

Neeraj Arora

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