We
have already discussed ‘Where to invest’? This is a big question, Stocks, Bonds
and Mutual funds are very challenging to deal with these financial mazes. Small
Cap Fund, Mid Cap Fund, Large Cap Fund; Blue Chip Fund, Gold ETF Fund,
Government Security Bonds, Corporate Bonds;
Sensex, Nifty, Bank Nifty, Options in Futures trading, Forex trading,
Life Insurance, Term Insurance, and so on.
Which of these will be the right investment? Short-term investment or
long-term investment which is safer and fulfills our future dreams. This is called portfolio management.
Day trading or short-term investment has a lot of risks, but if you invest
properly, you can earn more profit. On the other hand, long-term investments
are planned for future prospects such as child education and marriage,
buying a flat or house, or saving for retirement. Profile management is really a
maze and a challenging thing for a new investor.
* Before
creating a profile calculate your financial future needs. For example, consider
how much money required for your children’s higher studies, how much it will
cost to buy a flat or house, or how much money you will need for your leisure
life. Whatever your future plans, determines your plans with financial value,
and then decides when you will need this money. Now set your goals and make a
realistic plan to meet them.
*
Think about how many years you will be able to invest. If you are not planning
to retire soon, keep a portfolio that includes long-term investments. And if
you don't have much leisure time to retire, you need to consider a
conservative investment approach.
*
Now another thing is very important to determine how much risk you can take in
your life in the trading market business. it depends on the level of comfort in
your life. The measure of your risk depends on your income and ability in other
words, how much market risk or loss you can handle. Generally speaking, the
more time you invest, the greater the risk you are able to take.
*
Consult a professional investment instructor. In order to get rid of some of
the problems in the market at a later time, it is very wise to build a
portfolio of investments like a professional guide.
Recent
research has shown that investors are following the general rules of the market
for greater needs by following financial advice and guidelines, The Government
of India has entrusted agencies such as the Investment Regulatory Development
Authority, the Reserve Bank of India, and SEBI to assist investors in meeting
their financial goals and to manage their investments in a sound and efficient
manner. Nowadays, various banking institutions are also offering investors the
opportunity to trade in the stock market through Demat accounts with mutual
funds, various insurance products in your portfolio to increase diversified
investments.
Have
a Great Day…
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