Ways to Earn money
– Investing directly in the stock market can be very risky, take a consistent financial approachSeek the help of a financial planner to find the rest of your life
– Many people have taken money from investing directly in the stock market since the epidemic began. According to India’s largest stock market broker, Zerodha, account opening prices for the first five months of 2020 exceed surplus prices for all 2019 customers. added more than 750,000 new accounts since the end of February.
The financial planners we spoke with said that many people view the stock market correction in February and March as a good opportunity to invest directly in equity.
We call this growth in low value stocks that have given new investors access to the market. Low deposit rates for banks also have brought in new investors seeking higher profits compared to other asset classes. The fact that people worked from home allows them more time to recover their money. Similar patterns were shown in 2008. We will still see how this work happens over time, said Nithin Kamath, founder and chief executive, Zerodha.
Although investments are a good investment tool to help you achieve your long-term goals, investing directly in the stock market may not work for retail investors given high risk.
If you are an investor for the first time or you are not interested in breastfeeding, we tell you the best way to get close to investing in equity.
Go for mutual funds
Selecting the right databases requires research and analysis. Before you begin investing, it is important to understand the basics of an investment that is equal to the risk-reward ratio, how to analyze a company’s financial reports, different types of stocks, investment methods, diversification, and so on. This requires both time, knowledge and experience.
“Many investors are busy with their commitment and ambitions and may not have enough time to gather information about the companies they wish to invest in and can constantly monitor their portfolios. They may also be unable to take timely steps, ” said Harshad Chetanwala, co-founder of MyWealthGrowth, a financial advisory and financial planning company.
So it makes sense for real estate investors to go looking for more money as they are driven by professional fund managers who have a full-time job in selecting the right shares. Mutual funds also help you invest in a stock basket instead of just doing a few.
“Management costs are reasonable compared to the benefits. Also, the mutual fund industry is regulated by stock market regulators Securities Funds and the Indian Board of Trade which operates in the best interest of investors. For an innovative investor, this is the best choice to invest in equity as it reduces risk to a degree, “says Melvin Joseph, founder, Finvin Financial Planners, a Sebi-based investment advisor.
Mutual funds also allow you to invest in financial markets for as little as ? 500 per month.
Within the associated funds, choose a formal investment plan (SIP).
Investing in a long-term plan gives you the benefit of reducing expensive expenses. Since your investment is fixed and constant, you are able to secure more units when stock prices go down and you benefit when prices rise next.
Joseph said one should invest in equity funds through SIPs as they help with the cost of investment and will be able to benefit in the long run. It also helps to emphasize the practice of investing in discipline.
“Invest in SIPs in one or two equity funds. After three to five years, you will understand how the market behaves. You cannot expect a positive return every year. If you expect that, equity is not for you, only invest in debt,” Joseph said.
Seek professional help
A successful investor always has a concrete plan. “You have to define your financial goals, decide to tolerate your risk, and hope to invest in building a personalized investment plan,” said Harsh Jain, co-founder and chief operating officer, Greatw, an online investment platform.
But if you are bound by your day-to-day obligations, you may not find the time to research the effectiveness of the various currencies and the types of stocks or categories in which they invest because there are similar mutual fund schemes today. Only then can a financial planner or a registered investment advisor at Sebi help you.
Managed financial planners. They look at your income and expenses to help you use savings. They are also helpful in identifying the investment strategies that are in line with your nutrition mindset. They review your investment regularly to know that you are on the right track.
Joseph said he has seen many investors enter financial markets with a view to making money faster. ” They are being invested in direct investments in other TV shows and other media that only highlight success stories. But not to mention that there are many who lose all their money in the stock market. The return of the last three months on the stock of Reliance Industries is close to 60%. But if I buy it now, can I expect the same return in the next three months? It’s not even guaranteed for the next three years, ” he said.
Also, investing in short-term rates can be risky. Chetanwala said investing in equity is like investing in companies and their businesses. “These businesses take time to grow and the results of their growth have taken time to translate into returns. This process lasts for a few years and not weeks or months. Therefore, patience is the key,” he said.
Few people are successful with direct investing on a regular basis. For the majority, mutual funds are very safe to go with.
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