- Mr.A is trying to catch the tail of the missed global AI rally of the last two years which more than doubled his friend’s money in Nasdaq 100 funds.
- Mr. B wishes to invests in insurance policies before the financial year ends to save on taxes.
- Mr.C is impressed by a finfluencer’s claims on Instagram which promises double digit guaranteed returns on fixed income.
If you observe these instances, the underlying motivation to invest is primarily because of FOMO (fear of missing out) or saving taxes or chasing returns through the influence of social media. Investors however fail to pause and rarely think about questions which actually matter.
Considering the behavioral tendencies, check out the infographic above on the four crucial questions which investors skip before making an informed investment decision.