Starting your investment journey as a beginner can get very overwhelming. No matter how hard you try to keep it extremely simple and straightforward, with an endless number of varieties of assets, market fluctuations and financial jargon, you are bound to get confused and just hit a dead-end. Whether you are trying to build long-term financial security or just saving up for a car, using these tried and tested strategies will help you to achieve your financial goals easily.
- Set Clear Investment Goals:
Investing your money without a purpose or direction is as good as keeping it tucked away in the locker of your cupboard. Before you begin investing even 100 rupees, ask yourself what you are aiming to achieve with this investment. Are you saving for your retirement funds, to buy a house, or simply to have some funds set aside in case of sudden emergencies?
For example, if you are planning to save up for your retirement, then investing in equity or SIP mutual funds is the best way to go. However, if your aim is to save up for a vacation, then a fixed deposit would be the best way to go.
- Start With SIP In Mutual Funds:
Starting an SIP in mutual funds is the simplest, straightforward and most effective form of investment for beginners. When you sign up for an SIP, a specific amount of money gets deducted from your bank account on a specific date on a monthly or quarterly basis. This helps you to build a habit of consistent savings. Furthermore, it is the safest form of investment as compared to investing in the stock market because it helps you build wealth over time while reducing the impact of market volatility through the rupee-cost averaging method.
- Diversification Of Investment Portfolio:
Have you heard about this saying: Never put all your eggs in one basket? Well, the same applies to investments as well. You should never invest all of your money into just one asset. Diversify your investments across multiple assets such as mutual funds, ETFs, real estate, the stock market, etc. The habit of diversifying your investment portfolio helps to reduce the overall risk you could face in case of sharp market volatility.
- Investing Through Reliable Apps:
Another important strategy that you should consider as a beginner is to invest only through reliable and trustworthy investment apps such as the Sher Bazar App. Making use of a trusted and reliable trading or investing platform ensures that all of your financial data and transactions are safe and secure. They also provide key insights into the market trends, portfolio tracking features, and automated SIP setups.
Investing in the market as a beginner does not really have to be extremely complicated or difficult. You just need to keep learning in order not to hit an absolute dead-end. Even the best of all investment strategies can easily fail if you do not understand how to execute them properly. Hence, don’t wait for the “perfect time” to invest because the best time to start is always today.
