Explained: Are you a DIY (Direct) mutual fund investor? Avoid making these mistakes
DIY
approach and impact long-term returns.
Independence Day 2025
Modi signals new push for tech independence with local chips
Before Trump, British used tariffs to kill Indian textile
Bank of Azad Hind: When Netaji Subhas Chandra Bose gave India its own currency
According to some mutual fund advisors, many DIY investors are concerned about the poor performance of their investments and taking wrong investment decisions in their eagerness to salvage their investments.
Also Read |
Parag Parikh Flexi Cap Fund and Bandhan Small Cap Fund among 8 mutual funds which received over Rs 1,000 crore inflow in July
Best MF to invest
Looking for the best mutual funds to invest? Here are our recommendations.
View
Details
»
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Would you like to know more?
adobe.com
Undo
If you are one of those 'direct' investors, here are some pointers for you.
Don't rush your decisions.
Every financial choice comes with a cost. Many new investors, in their rush to exit a scheme, overlook charges like exit loads and capital gains tax—realising the impact only after the decision is made. It's important to remember that redeeming your investment too early can invite taxes and penalties. For instance, some funds may also levy an exit load if you sell before the specified holding period. Being aware of these costs can help you avoid unpleasant surprises and make more informed investment decisions.
Live Events
Relying too much on forums and free advice
It doesn't matter whether you began investing in
mutual funds
after thorough research or simply took the plunge. What matters now is that, as an investor, you continue to build and refine your understanding of mutual funds. Relying solely on generic advice from friends or online forums can often mislead you, especially when such guidance ignores your risk appetite, investment horizon, and financial goals.
That's why it's in your best interest to stay reasonably well-informed. A sound knowledge base will not only help you avoid costly mistakes but also strengthen your journey of wealth creation through mutual funds.
Clashing expert opinions can confuse
Many DIY investors often post the same query across multiple forums or seek advice from several 'experts.' These experts could be fellow investors, active advisors, or even those running the forums themselves. Sometimes the guidance overlaps, but often it differs.
One should always remember that they don't need consensus from every expert before making a decision. Each advisor will interpret your situation differently. Instead of chasing uniformity, pick one trusted source—be it a friend, colleague, forum, or online advisor—and avoid overcomplicating things. Diverse opinions are natural, but they shouldn't cost you your peace of mind.
Also Read |
Top 5 mid cap mutual funds to invest in August 2025
Educate yourself
Hiring an advisor to manage your investments doesn't mean you should stop learning about mutual funds yourself. Many investors often share stories of being misled by unscrupulous advisors. To protect your interests, it's important to stay updated, track your portfolio, and keep enhancing your knowledge. This not only helps you safeguard your investments but also maximises your wealth-building potential. Even seasoned investors never get complacent—they continue learning to sharpen their skills and improve their mutual fund strategies.
Hire a professional
You may not like to hearthis, but it's important advice. If managing everything on your own feels overwhelming, consider hiring an experienced mutual fund advisor to guide you. Ask trusted friends or colleagues for recommendations and choose someone reliable. With the right advisor by your side, you won't need to stress about your investments every time markets face a rough patch.
A thoughtful DIY strategy, driven by discipline and clarity and based on your risk appetite, investment horizon, and goals, can be just as effective and rewarding as managed investing.
(
Disclaimer
: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hindustan Times
24 minutes ago
- Hindustan Times
Trump advisor criticises India over Russian oil, says tariff to hit where it hurts
WASHINGTON: White House trade advisor Peter Navarro sharply criticised India for purchasing Russian energy and defence equipment, pledging to 'hit India where it hurts' in order to change New Delhi's policy. In an opinion piece for the Financial Times, Navarro termed India's oil trade with Russia 'opportunistic' and 'corrosive' to global efforts being made to isolate the Russian economy. White House trade counselor Peter Navarro walks outside the White House after a television interview, on July 31, 2025, in Washington. (AP FILE) A former economics professor who emerged as a major trade adviser to US President Donald Trump in his first administration, Navarro is seen as a major force behind the US's retaliatory tariffs on trading partners. In his article, Navarro sought to link what he termed as India's 'high' trade tariffs and 'financial support' for Russia's war in Ukraine. 'As Russia continues to hammer Ukraine, helped by India's financial support, American (and European) taxpayers are then forced to spend tens of billions more to help Ukraine's defence. Meanwhile, India keeps slamming the door on American exports through high tariffs and trade barriers. More than 300,000 soldiers and civilians have been killed, while Nato's eastern flank grows more exposed and the west foots the bill for India's oil laundering,' wrote Navarro. In negotiations with the US for a Free Trade Agreement, India has refused to budge on protections for its agriculture, dairy and micro, small and medium enterprises (MSME) sectors from unfettered American imports. Trump on July 30 announced punitive tariffs of 25% on Indian goods shipped to America. He subsequently added another 25% levy, which is scheduled to come into effect next week, for purchasing Russian oil. India's foreign ministry has termed the tariffs as 'unreasonable' and 'extremely unfortunate'. Navarro also attacked Indian refiners for 'profiteering' by purchasing Russian discounted oil and exporting the processed petroleum products to Europe, Africa and Asia, stating that the surge in crude oil imports from Russia after 2022 was not for meeting domestic consumption. 'The Biden administration largely looked the other way at this strategic and geopolitical madness. The Trump administration is confronting it,' Navarro said of Trump's tariffs on India that have left the country's exports to the US at a significant disadvantage with those from competing nations. 'This two-pronged policy will hit India where it hurts — its access to US markets — even as it seeks to cut off the financial lifeline it has extended to Russia's war effort,' Navarro said. 'If India wants to be treated as a strategic partner of the US, it needs to start acting like one.' Navarro's criticism marks the latest recrimination of India's ties with Russia from a senior member of the Trump administration. Secretary of State Marco Rubio, Treasury Secretary Scott Bessent and White House Deputy Chief of Staff Stephen Miller have also taken issue with New Delhi's relationship with Moscow. Navarro also added to earlier criticisms of India in a new direction, by taking aim at defence technology transfers from US firms to India. In his view, building factories in India and transferring sensitive technologies does not help improve Washington's trade balance with New Delhi. Navarro also charged India with 'cozying up to both Russia and China'. Former US officials have questioned Navarro's assertions about the India-Russia relationship. 'The larger issue is that the secretary of State and other principals authorized this piece. So those who know better and are supposed to balance American interests either agree with it, don't agree with it but authorized it anyway, or just don't care,' says Evan Feigenbaum, a former diplomat who served as deputy assistant secretary of state for South Asia under George W Bush. 'This completes a strange narrative arc from Washington and has finally shifted U.S. policy from a trade war and strategic friction with China to a trade war and strategic friction with India instead. I'll say it flatly: that is just strategic malpractice,' adds Feigenbaum, who helped negotiate the India-US civilian nuclear deal during the mid-2000s.
The Hindu
24 minutes ago
- The Hindu
Indian broadcasters staring at crores in unpaid license fees from Nepal, Bangladesh
TV broadcasters in India are due hundreds of crores in overdue license fee payments from distributors in Nepal and Bangladesh, a problem that has been getting worse over the last year, two executives with knowledge of the payment issues told The Hindu. The problem has been particularly acute in Bangladesh, where after the ouster of former President Sheikh Hasina, TV distributors have stopped paying Indian broadcasters the fees they are due for transmitting their channels. Many Indian channels are popular in Nepal and Bangladesh, so much so that broadcasters give distributors in that country a 'clean feed,' a stripped-down live broadcast without Indian ads. In Nepal, which has had issues in the last few years of withheld payments to telecom companies like Airtel, the dues exceeded ₹100 crore in the last few weeks. Nepalese Prime Minister K.P. Sharma Oli is due to visit India in September, and Indian Foreign Secretary Vikram Misri visited Kathmandu on Sunday for a two day official trip. Bangladeshi broadcasters also owe over ₹250 crore, one executive said. The Nepalese embassy and the High Commission of Bangladesh did not respond to queries by The Hindu. The Ministry of External Affairs did not immediately respond to a query on the dues. In Airtel's case in 2023, the telecom company cut off its link to Nepal briefly, before turning it back on in a few hours, underlining the stakes if payments didn't come through. One executive speaking to The Hindu said that the major Indian broadcasters are hesitating to do the same, as broadcasters in both countries could simply pirate an Indian retail feed, ending any hope of recovering due license fees, and posing enormous challenges in reentering the market. In Nepal, Indian channels have been facing issues with the government since April 2023, when the country's Ministry of Communication and Information Technology (MoCIT) gave every broadcaster just two days to implement an 'à la carte' pricing system, practically identical to the Telecom Regulatory Authority of India's New Tariff Order. Unlike the NTO regime, which was implemented — with much resistance — after several months of consultations, the notice given was so short that Indian broadcasters only came to know of the requirement days after the deadline. In Bangladesh, Beximcom, the country's largest conglomerate with over $1 billion in assets, has not received remittance clearance from the Bank of Bangladesh to pay Indian broadcasters, and the political situation in the country has left diplomats and politicians with little interest to deal with the commercial concerns of broadcasters, one executive said.
&w=3840&q=100)
Business Standard
24 minutes ago
- Business Standard
Gupta lawyers fail to appear for London hearing in Trafigura fraud case
Lawyers representing Indian businessman Prateek Gupta said they failed to appear for a hearing on Monday because of funding difficulties in a long-running fraud case brought by commodity trader Trafigura about nickel cargoes, a London court heard. Geneva-based Trafigura, a major industrial metals and oil trader, filed a lawsuit against Gupta in February 2023, alleging it had been the victim of a $600-million fraud involving nickel cargoes masterminded by Gupta and in which he and his companies participated. Gupta has said in his defence that Trafigura staff devised the scheme at the centre of the case to substitute low-value materials such as scrap for high-grade nickel. Trafigura and its employees have denied any knowledge of fraud. Gupta's lawyers Preston Turnbull informed Trafigura and the court on Friday that due to a lack of funding they would not be attending Monday's hearing regarding the use of documents in a separate arbitration case. "That is an excuse which has been routinely trotted out by the Gupta defendants throughout these proceedings when it had suited them to do so, and it is without any merit," Trafigura lawyer Edward Ho told Monday's hearing. Preston Turnbull did not respond to a request for comment. In March 2024, lawyers for Gupta told a court he had run out of funds to pay legal fees, and in June last year Gupta changed lawyers to Preston Turnbull from Mishcon De Reya. "The court has previously found, and I agree, that there are sources of funding available to the Gupta defendants," Ho added. "Alleged funding issues have been a recurring theme... to justify their failure to meet court deadlines and to comply with court orders." Judges have granted a succession of delays over many months to Gupta to meet deadlines for disclosure of documents relevant to the case, which is due to go to trial in November. Judge Robin Knowles on Monday granted Trafigura's request to use nine documents disclosed by Gupta in the current fraud case in a separate arbitration case due to be heard next month. The arbitration case involves Trafigura and Hong-Kong based Axiom Ltd because Trafigura sold one of the cargoes provided by Gupta to Axiom, which was found not to contain nickel, the court heard.
