Grayson Rainier, marketing manager at M&G Investments, said many investors make fundamental mistakes that can impact their ability to grow their wealth.<\/p>\n
These mistakes, Rainier said, are mainly associated with new investors. Wealthy investors avoid these investment blunders.<\/p>\n
The good news is that these mistakes are easy to avoid. The errors can be identified and avoided following a few basic principles.<\/p>\n
Here is a list which Rainier provided about investment mistakes to avoid.<\/p>\n
Wealthy people have always embraced the first rule of investing: diversification. Forgetting to do so can raise your risk profile and impact your investment returns.<\/p>\n
There are many opportunities to invest in different geographic locations, intangible and tangible assets, listed or private companies, fine arts, or collectable wines.<\/p>\n
By investing in a broad spectrum of assets that all grow at different rates and stages and in varying conditions, the wealthy minimise risk across their investment portfolios.<\/p>\n
Wealthy investors aren\u2019t gamblers and don\u2019t entertain illusions of being able to time the market by buying in before prices rise and then getting out before prices fall.<\/p>\n
Timing the market may work once or twice by accident, but it\u2019s bound to end in heartache in the long run.<\/p>\n
Even financial analysts and fund managers are unable to accurately predict these market shifts since no two business cycles are the same.<\/p>\n
The wealthy aren\u2019t emotional about their investment choices and don\u2019t bother to keep up with the Joneses.<\/p>\n
They embrace frugality, remain optimistic, and invest spare money to compound their investment returns.<\/p>\n
Even if their portfolios lose substantial value in a market downturn, the wealthy don\u2019t panic.<\/p>\n
They realise the losses are only temporary since, over the longer term, markets rebound and produce solid returns.<\/p>\n
Rebalancing your investments is the process of readjusting the overall asset allocation in your portfolio to maintain your original investment objectives.<\/p>\n
It\u2019s necessary to do this periodically since investment values move over time, giving better-performing assets a higher weighting.<\/p>\n
Rebalancing usually entails buying and selling varying proportions of unit trusts and other assets. It protects your gains.<\/p>\n
Many investors make fundamental mistakes that can impact their ability to grow their wealth.<\/p>\n","protected":false},"author":341108,"featured_media":475055,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[80335],"tags":[83449,35,83451],"class_list":["post-475051","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing","tag-grayson-rainier","tag-headline","tag-mg-investments"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/475051"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/341108"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=475051"}],"version-history":[{"count":0,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/475051\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/475055"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=475051"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=475051"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=475051"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}