In the ever-changing landscape of investments, avoiding pitfalls is crucial for safeguarding your hard-earned money. In this episode of Invest Smart, seasoned financial expert PV Subramanyam sheds light on some of the most common mistakes investors make, potentially jeopardizing their financial stability. In this article, we break down Subramanyam's insights to help you navigate the intricate world of investments wisely. One of the most significant mistakes investors make is venturing into the market without adequate knowledge. Subramanyam emphasized the importance of understanding your investment goals and knowing whether to seek professional advice. Blindly investing based on blogs or videos, especially for substantial sums, can lead to significant financial losses. Distinguishing between investing and trading is vital. Investors generally have a long-term perspective, allowing them to weather market fluctuations. Traders, on the other hand, engage in frequent buying and selling, requiring constant vigilance. Being clear about your approach helps you make appropriate decisions aligned with your risk tolerance, he added. Your investment horizon significantly impacts your asset allocation. Subramanyam said short-term goals might necessitate a more conservative approach, involving a mix of equity and debt. For long-term goals, equities are a preferred choice, given their potential for higher returns over extended periods, despite market volatility. Another important aspect as per Subramanyam is to assume that inflation will always remain stable. He emphasized that your investment returns must consistently outpace inflation to preserve your purchasing power. Failing to do so could erode your wealth over time. Successful investing requires a combination of knowledge, patience, and emotional discipline. By understanding these common pitfalls investors can make informed decisions, safeguarding their financial futures.