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Which of this is a common investing mistake to avoid?

What is the main advantage of starting to invest early?

Financial Literacy

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Questions 10

Answers

1
What is the main advantage of starting to invest early?
Power of compounding
Lower risk
No market volatility
Higher returns guaranteed
2
Which of this is a common investing mistake to avoid?
Emotional trading based on fear or greed
Diversifying Investments
Long-term thinking
Regular investment through SIP
3
For a 25-year-old investor, what is the recommended equity allocation?
70%
50%
40%
60%
4
What does owning a stock represent?
Lending money to a company
Owning a piece of the company
Guaranteeing fixed returns
Having voting rights only
5
According to the 50-30-20 rule, what percentage of your income should go towards savings and investments?
10%
50%
30%
20%
6
How many months of expenses should you have in an emergency fund before investing in stocks?
3-4 months
6-12 months
1-2 months
No emergency fund needed
7
How much can ₹10,000 grow to in 20 years at 10% annual return?
₹ 68,000
₹ 90,000
₹ 75,000
₹ 50,000
8
What is a bull market?
When are markets are volatile
When stock prices are falling consistently
When stock prices are rising consistently
When trading volume is high
9
What is the relationship between risk and return in investing?
Higher risk = Lower potential return
Higher risk = Higher potential return
Risk and return are unrelated
Lower risk = Higher potential return
10
What SIP stand for?
Stock Investment Plan
Strategic Investment Portfolio
Simple Investment Process
Systematic Investment Plan