Five habits of a good investor

A good investor always saves for the rainy day first. So, if you have thought over it and maintain an emergency fund than no one can deny that you stand among good pack of investors.

Mar 16, 2015 04:03 IST India Infoline News Service

One can differentiate good from bad, as both the traits have their own features. Likewise, an individual could make out whether he is doing good or bad in his role as an investor. Here are the five signs that could assure that you are a good investor.
 
Know-Your-Self (KYS): One might have heard of 'Know-your-customer' process that banks and mutual fund conduct. But, the same applies to an individual too, who needs to assess his beliefs, his self. It is important to understand whether you have a good hold on investment related matters or not. It is not possible for everyone to be good with returns, taxes or funds but knowing the weakness within makes all the difference. A person, who identifies the weakness and takes corrective steps, is a good investor than those who shy away from such acknowledgement.
 
Thought of emergency: A good investor always saves for the rainy day first. So, if you have thought over it and maintain an emergency fund than no one can deny that you stand among good pack of investors.
 
Ad-Hoc decisions: Have you ever invested money and kept it in your mind to use it for some emergency or need then it is a bad sign. People do save, but then they also make a way to spend that saved amount. So, withdraw from such thoughts as this is not what good investors do.
 
Rebalancing and reviewing: Are you among those who invest and forget about it? If this is the case, then it surely contradicts with how good investors should behave. An investor should always review and rebalance his portfolio periodically as forgetting the investment is irresponsible.
 
Keeping an eye: Fear about investments to a certain degree is appreciable. It gives the power to an investor to find out and make informed decisions. Those, who care less about their money and prefer to rely on others, are more prone to risk than those who stay abreast with the market to keep their money secure.

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