Investment Plans: Diwali is coming. In the meantime, people have so many plans in their minds. Some people are buying something, or some people have plans to invest in something. But its not so easy for the first time. If you are new in the market and planning to invest in something, then here are some tips for you.
Many people are unable to know that there is a tradition in the stock market to start new investments at an auspicious time on Diwali. Here we will discuss from starting an investment to strategizing.
When is the right time for investment?
Do you also think when is the right time to invest? The earlier you start investing, the better the returns can be. This investment can help you buy a house, car, travel, start a dream project, or pay your bills in the future.
For how long should you invest?
The most important thing is that investing is a long-term venture. Of course, you have to be patient. Success does not come easily; it should be kept in mind. Always remember, the longer you invest, the better returns the compound interest can bring to you. Give your investment at least five years. Keep in mind that volatility is part of the market. In such a situation, do not panic on the fall. Because everything has ups and downs.
Make Strategies
Before investing anything, first you have to make some strategies. Without any strategy, you will get nothing in return. Yes, you’ve heard right. First, set aside some money to invest in your future. Also, create a separate emergency fund to cover expenses for like 6–9 months. Here are some tips for you.
1. How much money am I willing to invest?
2. What kind of investment instruments would be better for me?
3. What kind of asset allocation should one choose to avoid risk and diversify the portfolio?
4. Which areas are most attractive at the moment?
5. Last but not least, you have to keep in mind: What is my risk tolerance? If there is a loss, when should I change direction?
How much money should you have to invest?
Many experts say that you can start from Rs 500 a month through SIP in mutual funds. Stocks have shares priced at less than one rupee to Rs 1.26 lakh. The fact is that some of today’s biggest companies started with penny stocks. Amazon’s IPO came in 1997; then a share was less than two dollars. After 25 years, one of its shares is now at $3,300.
