“It’s never too late to learn.” When it comes to learning the art of investment these words from Malcolm Forbes could not be apter. Investment can be a mixed bag of opportunities and disappointments.
But this cannot be a deterrent factor from putting part of your savings to work. A golden rule for investing is to stay focused and keep your investment strategy simple and easy.
If you are still a novice and taking your first plunge into the complex yet exciting world of investing, this blog lists some of the best practices that you can adopt as a beginner and get at ease with the rules of the game.
Start Early: This is one thing that all investment pundits will give you first hand. There is no denying the power of compound interest but to see it in its full bloom there is one thing that you need by your side and that is ‘TIME’.
So start saving early to invest early.
The only secret for success in investment is to realize that there is no secret at all. Do not look for overnight success as well as there is no such thing as ‘Great Timing’. Remember the road to a successful investment portfolio will have its share of pitfalls and bumps. The only best friends that you can have is ‘Information Technology’.
Be Aggressive but Tactical: The first thing is to make an assessment of your risk tolerance limit. And the next must be to breaking the investment in smaller periodic portions which will better equip you to take advantage of the currency value averaging.
Guided Investing: Unlike the erstwhile ‘You For Yourself’ investment environment, today there a host of online and offline companies offering technology-driven solutions for ensuring a great investment portfolio for their clients. Al the help and options you want is just a phone call away. The only downside is that the services are not free.
Zero fees Investing: Today there are fintech apps like Robinhood which bring all your investment needs at the tip of fingers and that also free of cost. From listing special index funds to providing analytics tools and reports, there are apps which do all the math free of cost.
Diversify: As they say, never put all your eggs in the same basket, investment portfolio must reflect a rich palette of stocks and funds that are contrasting not only in principals but industry too.
Bird-Eye View: Assessment is the key to strategizing. A common practice is evaluating your returns with respect to an index like S&P 500 or Nasdaq. Benchmarks like this not only give a bird’s eye view of the larger picture but also help in better categorizing your hits and misses.
Zen-Like Calmness: Investment can be a bumpy ride for some. But instead of being overly elated or overly depressed by short-term gains and losses, one must keep one eye on the larger prize and work out a strategy accordingly.
And when we talk about the future, one can’t ignore but mention the pioneering blockchain solution that brings classical (stocks, funds, etc) and modern digital investment like crypto coins, tokens