Common mistakes first-time investors make and how MO RiiSE helps avoid them

Starting your investment journey is a wise decision to build a secure financial future. However, as a first-time investor, it’s easy to make mistakes, such as following social media trends blindly, taking random advice from friends, acting on short-term hypes, or chasing only past returns.

These mistakes could mean investing in the wrong products, missing growth opportunities, or building an unbalanced portfolio. That’s where MO RiiSE helps. This investing app is backed by the legacy of Motilal Oswal, a SEBI-registered public entity trusted by 40+ lakh investors.

Look at some common mistakes that first-time investors often make and how MO RiiSE helps avoid them.

Choosing the wrong demat account app

Many beginners rush into opening a demat account without comparing features, only to later realise they are now dealing with high charges, slow execution, or limited support.  

MO RiiSE is a user-friendly demat account app that does not charge any fee for account opening, annual maintenance, or expert research. The 100% paperless onboarding process, real-time market data, and 24/7 customer support make it ideal for new investors who want to invest confidently.

Investing without a goal

Many new investors jump into stocks or mutual funds without clear goals like tax saving, passive income, or long-term wealth. This often leads to random choices and mismatched portfolios. MO RiiSE offers a goal-oriented investing experience with organised categories of funds.

For mutual fund investors, the app offers objective-based collections, such as:

• Tax saver

• Systematic Investment Plans (SIPs) with ₹500

• High return funds

• Index funds

• International funds

For stock investors, this demat app offers curated categories like:

• Highest dividends

• Better than Nifty 50

• Debt-free stocks 

• Foreign Institutional Investors (FIIs) favourites

These categories help beginners invest with purpose and develop a disciplined approach to wealth creation from day one. 

Following the crowd instead of research

One of the most common mistakes in the stock market is acting on hype or rumours. Adding stocks just because friends are buying or following social media tips could mean investing at peak prices, holding the wrong stocks, or exiting early out of panic.

MO RiiSE helps you avoid such situations by offering expert-backed research on over 260+ stocks covering 21+ industries. For more guidance, you can join StoCoMo. It’s India’s first investor network with 1.5 lakh+ members, where investors join live discussions, attend weekly sessions, and interact directly with Motilal Oswal experts for free.

Focusing only on returns

Among the most common investing mistakes to avoid is chasing top-performing investment products without analysing consistency, volatility, taxation, or investment horizon. This can lead to overpaying for overhyped assets, ignoring risk, and ending up with a portfolio that doesn’t fit your goals.

MO RiiSE provides crucial insights on every scheme, such as:  

Access to such details helps you avoid hype-driven decisions and create a research-based portfolio.  

Not diversifying

Many beginners also commit the mistake of investing heavily in one stock or one mutual fund scheme, often based on word of mouth or internet trends. This can be risky because if that one asset underperforms, it can drag down your entire portfolio.  

MO RiiSE makes diversification easier by offering access to investments across equity, debt, hybrid, tax-saving, and even Exchange-Traded Funds (ETFs) categories. You can even start multiple SIPs across categories to divide risk and build a more stable, goal-oriented investment strategy.

To sum up

Every experienced investor once started from scratch. Mistakes are part of the learning curve, but with the right tools, they don’t have to be costly. MO RiiSE, with its free and 100% digital onboarding process, expert insights, learning materials, real-time market updates, and many investment options, helps you build a smarter, more diversified portfolio from day one. 

So, begin investing with clarity, purpose, and confidence using the MO RiiSE app.