Big Mistake Small Remedy INVESTORS

2. Big Mistake – Small Remedy… “INVESTORS” Investors are prone to making mistakes. Even the best of fund managers make mistakes. But small investors, mainly because of their lack of knowledge and understanding of the investment process, are prone to making mistakes which are even psychological in nature, rather than analytical. There are mainly three situations when retail investors make mistakes while planning their investments. There are decisions which are based on emotions rather than on logic.1. When they act under peer pressure and spend money, forgetting about their ability to meet those expenses.2. When they act under peer pressure and spend money, forgetting about their ability to meet those expenses.3. Most investors believe that a simple investment solution cannot be the best solution. They look for complex solutions even if the final result is barely different from the one which one can arrive at with a simplistic approach.