Getting involved in investments is one of the best ways to grow & multiply your wealth in the long term, though it can get a little complicated. The good news here is that investing is more accessible than ever. Previously, stockbrokers who used to charge hefty fees and did not have your best interest in mind, but today, the investing world has changed.
When people think of investing or the stock market, in particular, they think of it like a casino or a get-rich-quick scheme. Although there are ways that you can support making a massive pile of money in a short period they are incredible risk factors involved in it.
Most people who invest don't follow any strategy. Instead, they use traditional techniques and low-cost investing methods to grow their nest. If you're new to the investing world, these tips can help you build your first portfolio.
- Start Small - Do not put all of your money in the market at the start. Start small and test now and then work for you and check on your learnings. Start with a bare minimum of Rs 500 or 1000.
- Diversify Your Portfolio - This is one of the most critical factors. Do not invest in just one stock. Buy from different industries and sectors of the economy.
- Invest in Blue-Chip Stocks - These stocks are of the companies that have been in the market for a very long period and have a grab in the market. Being financially strong in their background and a good growth record may help you build some money during the start.
Read more: How to Get Started with Investing in the Stock Market
- Never Follow Free Tips - One of the primary reasons people fail to understand the stock market and frequently suffer losses. Always do your research on your own while investing in stocks. Tricks that worked for others may not work the same for you. Do not blindly follow tips and advice from friends or colleagues.
- Invest in What you Understand - Statistics show 60% of people suffer loss in stocks because they follow the crowd blindly to avoid this mistake. Do not invest in what you do not know. Learn and understand the company and its domain before investing.
- Expect the Unexpected - Do not set unrealistic expectations when investing. Trust us in this if you want to make your money go double in the amount, you have to put your expectations down. Always a logical bar set.
Read more: 5 Things to Consider Before You Start Investing
- Follow a Plan/Strategy - Do not go ballistic if your portfolio performs too well or too sour. Stocks give the best returns when done for an extended period. Many people increase their investment in just a few weeks after seeing their stock did too well and then losing in the long run. Do not follow one share for too many years. Invest regularly and especially when there is an excellent opportunity in the market.
- Keep Learning - Keep educating yourself when starting with investing. The market is a dynamic place and keeps changing continuously. You can keep up with it if you keep continuing your education.
(Check out 'Learn & Grow with Wizely' 'to read and learn all about investments and the stock market.)