You know that feeling when you finally decide, “This year I’ll start saving seriously”? Yeah, we all do that. I’ve been there too end of financial year panic, sudden interest in ELSS, watching YouTube videos with titles like “Best Mutual Funds Investment in India 2025” and then… doing something totally random.
But here’s the thing we Indians often don’t fail at investing because of lack of options… we mess up because of basic, silly mistakes. Some we repeat every single year. So let’s chat about those blunders — not like a finance guru, but like two friends sitting on the terrace sipping chai.
1. Rushing to Invest Only in March
I swear, this is a national habit. Every March, my WhatsApp floods with friends saying, “Bro, any 80C saving tips?” It’s like the entire country wakes up to taxes in the last week.
But what happens in panic? You blindly throw money into random LIC plans, 5-year FDs, or worse — invest in something your uncle said was “safe” without checking anything.
👉 Start small, but start early. Even ₹500 a month from April is better than ₹50,000 dumped in March.
2. Following “Tips” Without Understanding
Once my cousin invested ₹1.5 lakhs in some random stock just because someone in his office said “It’ll double in 6 months.” Spoiler alert: It halved.
Following random advice is like taking medicine because a neighbour said it worked for them. Investing isn’t one-size-fits-all.
Always ask: Is this right for my goals, my risk level, and my timeline?
3. Ignoring Inflation Like It’s Not Real
My dad still talks about how petrol was ₹22 once. But if you’re saving money and your returns are 5% while inflation is 7%, you’re actually losing value.
It’s not about “saving” anymore — it’s about growing. That’s why just putting money in savings accounts or low-interest FDs doesn’t work anymore.
Try to include some exposure to equity, gold, or even REITs if you can. At least explore them before saying no.
4. Not Having a Clear Goal
“I want to be rich” isn’t a goal. That’s just a hope. You need specifics: Buying a house in 5 years, Child’s education in 10, or Europe trip in 2.
When you don’t know what you’re investing for, you’ll never know how much is enough.
Break it down, write it on paper if you have to. It sounds silly, but it works.
5. Mixing Insurance with Investment
ULIPs, endowment plans… all these are sold with the same sweet line — “Sir, dual benefit: investment + life cover!”
But here’s the truth: Insurance is for protection. Investment is for returns. Mixing them gives you weak benefits on both ends.
You’ll end up paying high premiums and getting low returns. Better to get a cheap term plan and invest the rest separately.
6. Not Reviewing Your Portfolio
This one’s personal. I invested in a small-cap fund in 2021. Didn’t check it till 2024. When I opened the app — it was down 30%.
Markets change. Life changes. But we forget to adjust. You don’t need to obsess daily, but at least review your portfolio once every 6 months.
If you’ve outgrown a fund, or your goals have shifted, it’s okay to make changes.
7. FOMO Investing
One of my friends put money into crypto at the peak in 2021 just because everyone was doing it. Two years later, he’s still waiting to recover half of it.
Chasing trends is dangerous. Every year there’ll be a new buzz: EV stocks, AI startups, international ETFs…
If you don’t understand it, don’t invest in it.
Quick Recap: Common Mistakes to Avoid
- Waiting till March to invest
- Taking random advice without research
- Underestimating inflation
- Investing without clear goals
- Mixing insurance and investments
- Not reviewing portfolio regularly
- Falling for trends and hype
My Takeaway?
See, you don’t need to be a finance wizard to avoid mistakes. You just need to be aware. Most of us aren’t lacking knowledge we just need to pause before reacting.
Start small. Keep it real. And if in doubt, talk to someone you trust not your neighbour’s son who just opened a Zerodha account.
Trust me, investing gets easier when you stop chasing perfection and focus on progress. Even a slow start today can make your future self say “Good job, yaar.”
Related atricles
10 Common Investing Mistakes to Avoid
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