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Common Mistakes You Should Avoid With Your Financial Planner

Updated On Sep 25, 2023

Rightful investment planning is very crucial in today’s time when the cost of living is on a constant rise. So, if you have been planning to start investing and have not started yet, then now is the right time to do so. To help you out we have also curated a guide that tells you the mistakes to avoid while financial planning with your financial planner.

What is Investment?

Common Mistakes You Should Avoid With Your Financial Planner

Investment is a type of life insurance plan that helps in multiplying your wealth or wealth creation. Based on risk factors, there are three different types of investment such as short-risk investment plan, high-risk investment plan, and medium-risk investment plan. On the basis of policy duration investment plans are classified into short-term investment and long-term investment plans. Moreover, some of the common investment avenues include Systematic Investment Plan (SIP), gold, fixed deposits, mutual funds, and many more.

Common Mistakes You Should Avoid With Your Financial Planner

Are you planning to start your investment journey with a financial planner? If yes, then there are certain things you need to be aware of. Listed below are the common mistakes you should avoid when buying investment plans with your financial planner:

  • You should not conceal your financial goals from your financial planner. Doing so will give a wrong understanding to your financial planner regarding your future financial goals and eventually, you may end up buying an inadequate investment plan for yourself.
  • Your financial planner is not responsible for the market volatility. They can only advise you regarding which investment plan is best for you based on your income and age. However, they have nothing to do if your investment plan is not performing well.  So, don’t blame them for market failings.
  • You should also have a clear idea of your budget, failing to do so will lead to investing in a plan that is not right for you. When you invest in a plan that is out of your budget, you may end up borrowing money from others. To avoid such a situation, you should create a financial calendar that is aligned with your goals.
  • Most Indians still prefer investing in traditional options such as gold, FDs, RDs, and others. This is because they are of the assumption that market-linked options involve risk. However, you should establish such an understanding with your financial planner who will help you understand the different options. 
  • Another thing that you need to be aware of is the different terms involved in investment such as policy terms, credit score, and others. You can seek the help of your financial planner for the same who will help you understand the different terminologies.
  • Along with your financial planner, you should also keep inflation in mind. This will help you in creating a sufficient corpus with your investment plan even though there is inflation.

Top Investment Plans to Ensure A Secure Financial Future

Listed below are some of the top investment plans that will help you in creating financial stability:

    • Fixed Deposits: Fixed Deposits or FDs are one of the safest investment options in India. It offers guaranteed returns and comes in a lock-in period during which partial withdrawals will not be possible.
  • Gold: In India, investing in gold has been considered one of the safest investment options. It also offers investors the opportunity to choose as they can now invest in gold jewellery, gold coins, and even in digital gold such as gold ETFs, gold mutual funds, and many more.
  • National Pension Scheme: The National Pension Scheme or NPS is a good investment option if you want to create a corpus for your retirement. The best about investing in NPS is that you can start with an amount that is as low as Rs. 500. 

In addition to those listed here, there are still many other investment options that you can consider exploring.

Take Away

In a nutshell, it can be said that if you avoid these mistakes while investing then you can create a substantial corpus for the future. You can also find a number of investment options on InsuranceDekho website. 

Also read: Family Pension Scheme: Benefits of Family Pension Funds in 2023


This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.