5 Mistakes Investors Make in Mutual Funds
5 Mistakes Investors Make in Mutual Funds Mutual funds have become one of the most popular investment tools for building long-term wealth. But while the concept is simple, the execution can go wrong. Many investors unknowingly make mistakes that cost them returns — or worse, their peace of mind. Let’s explore the five most common mistakes mutual fund investors make , and how you can avoid them. 1. Chasing Past Performance Too often, investors choose funds based on last year’s top performers. While past performance can give insights, it doesn’t guarantee future returns . A fund that performed well last year may not sustain the same growth due to market conditions or strategy shifts. ✅ What to do instead: Look for consistent performance over 3 to 5 years and evaluate the fund manager’s track record, risk profile, and portfolio composition. 2. Timing the Market Trying to buy low and sell high rarely works — even professional investors struggle with timing. Mutu...