Avoid herd mentality from "summary" of Let's Talk Mutual Funds by Monika Halan
When it comes to investing in mutual funds, one of the key principles to keep in mind is the need to avoid herd mentality. This essentially means not following the crowd blindly when making investment decisions. Herd mentality can be tempting because it provides a sense of safety in numbers. When everyone around you is investing in a particular fund or asset class, it can be easy to feel like you're missing out if you don't join in. However, this can be a dangerous mindset to have when it comes to investing. The problem with herd mentality is that it often leads to irrational decision-making. People tend to get caught up in the excitement of a particular trend or fad without properly evaluating the risks ...
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