In this age of information overload, some may find investing to be an overwhelming task. Adding to the cacophony are individuals who have been in the game for a long time and like to share the financial wisdom they have accumulated. Most likely, such advice comes parents or elders around you. They might believe they are 'seasoned investors' who have accomplished their goals, but chances are that most of them have not managed their investments well. So, here are some things that your parents or elders may tell you, and you should ignore.

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1. Do something, do not just sit there: At least my mother has told me this a million times. In investing, as in playing a sport, leisure/ recovery time is just as important. Like a war - you prepare for 361 days and fight for 4. While investing you invest and then sit tight for long periods of time. You do not 'have' to do something.

2. PPF, LIC, National savings certificate, etc. are safe investments: Real returns post tax, all these investments will surely yield a negative return. Remember, it is the borrower who can decide the rates. These are at best savings products, not investment products.

3. Maximise your PPF: If you have Rs 70,000 to invest in a year, only about Rs 1,000 should go to PPF. Till you are under 45 years of age, max out the ELSS, not PPF.

4. If your funds are not doing well, churn: Yes, winners rotate, but losers stay at the bottom. But if there is a well-managed fund and it is not performing, do not churn. Look at the fund manager - see if there is a change. See the portfolio composition. If there is no change here, stay on in the fund. Sadly, investment monitoring is a process monitoring, not a result monitoring.

5. Good things are expensive. The more expensive they are the better the things. Perhaps true for all products other than funds. The only thing within your control are the expenses that the fund manager charges. Also, the market regulator Sebi has structured the charges in such a way that costs reduce with the increase in the size of the fund.

7. If the returns from your fund are not good, churn: Do not confuse it with point no. 4. If your fund is not performing well, learn with what to compare. In a year where the Sensex has given you a return of -4.5% per annum, if your fund has fallen by only 1%, it is doing well.

8. See the fund ratings and invest in 5-star rated funds: Raters say 'past is not an indicator of the future' but anchors keep saying 'buy it, it is a 5* rated fund'. The rating means nothing for investing. Just ignore the ratings.

9. Indexing works in developed markets, not India: If you do not want to worry and make mistakes, stick to index funds with minimum tracking error and lowest asset management charges.

10. Active management of a fund will help you compete with the best: Markets are a baby of ups and downs. The best fund managers can and do add value, but it does not mean they can beat the index consistently and avoid a bear run.

The writer blogs at subramoney.com