Investing in popular companies is always safe
While it’s natural to have confidence in well-known local companies, assuming they are always safe investments can be a dangerous misconception.
Even established companies can face financial challenges, regulatory issues, or market fluctuations that impact their performance.
Safety in investing comes from diversification – spreading your money across different types of investments, not just popular companies. It’s essential to research, consider your risk tolerance, and diversify your investments to reduce risk.
If you are interested in knowing more about different types of investments, you can check out our previous research on investment schemes and mutual funds.
Share this with your friends and family. Help out your buddies.
Was this blog shared with you? You can subscribe to our personal finance newsletter to receive such insightful articles directly to your inbox!
Weekly Wrap-up
This week we discussed
How does familiarity bias affect your personal finances? 5 strategies to overcome this bias
Cognitive biases can influence our decision-making process, & familiarity bias is one of them. Let’s understand it & learn 5 strategies to break free from it.
What are Corporate bonds? Is investing in them suitable for you?
Let’s break down the nitty-gritty of corporate bonds, how they work, the advantages & disadvantages of investing in them, and whether you should invest in them.