The 5-day festival of lights begins on Dhanteras. It is the biggest festival of prosperity in our culture. Since ancient times, people have been buying gold, silver, utensils, houses, etc. on this occasion. The learning from an investment perspective is that we should invest a small portion of income. It is a tradition to start a new investment in the stock market on the auspicious occasion of Diwali. Here we will discuss how to start investing in a simple way to create a strategy through questions and answers.
When should one start investing? “The best time to plant trees was 20 years ago. The second best time is now. If we look at this adage from an investment point of view, the earlier we start investing, the better returns we can get. This investment can help you buy a house, car, travel, start a dream project or pay your bills in the future.
How long should we invest? The most important thing is that investing is a long-term venture. Short-term profits are often illusory. The longer you invest, the better returns you can get through the power of compound interest. Give your investment at least five years. Keep in mind that fluctuations are part of the market. Don't panic in such situation.
How do I create an investment strategy? Just like you can't build a house without a blueprint, it's important to have a strategy before starting to invest. First, set aside some money to invest in your future. Also, create a separate emergency fund to cover 6-9 months of expenses. Start investing now and educate yourself so you can calculate and evaluate risks to get a return on your investment that matches your goals. Here are some questions to consider-
- How much money am I willing to invest?
- What kind of investment options would be better for me?
- What type of asset allocation should be chosen to avoid risk and diversify the portfolio?
- What sectors are most attractive at the moment?
- What is my risk tolerance? When should I change direction if damaged?
How much money do I need to start investing? You can invest Rs. per month through SIP in a mutual fund. You can start with 500. Stocks ranging from Rs 1 to Rs 1.26 lakh are available for investment. The fact is that some of today's biggest companies started with penny stocks. Amazon's IPO came in 1997, when the price of a share was less than two dollars. After 25 years, a share is now worth $3,300.
Image Credit: (Divya-Bhaskar): Images/graphics belong to (Divya-Bhaskar).
