Steps to Start Investing – There is always a first time!!

Every time we hear someone discussing about good return from an investment, don’t we regret that why this opportunity didn’t come to us. Yes we do, and why we feel this is because of the simple reason that we don’t invest. Every moment we think of making an investment, but do we actually invest? We probable give importance to savings over Investment isn’t?

Well!! There is always a first time, so start Investing. This article would take you through some steps/points which would help you to start investing money……

1.Set the output/goal of your Investment: The most important aspect of starting an investment is to understand the need of your investment.

It could be for any purpose, such as, college admission & fee, buying a house or a vehicle, retirement need etc. Determine how much money you need for such purpose. Along with it also establish a timeline for your financial commitments. This is would help you to calculate the amount of investment you need to make regular basis.

2.Establish conceptual knowledge of different types of investments:

With the growing economy and upgrading technology, by virtue of it, hell lot of options are available in the market for investment. But as a start-up, it is recommended to stick to basic investing options, such as Stock, Bonds and Mutual Funds

For understanding in where to invest, it’s better to hire a broker, who will guide you to know the past performance of the above investing options in details along with their future prospects. This will not only help you gain experience in investing matter but will help you take decisions independently.

3.Plan your Investment Strategy:

Based on your financial need/goal, plan a strategy for your investment. Whether you would like put all your investment in one basket or want to diversify the same, though diversification is always preferred. Stocks are always associated with risk depending upon the period of your investment. For shot period stocks are very risk but if we go for long period the volatility of stock evens out. Bonds and Mutual funds           comes with lower risk.

Timing of your investment is very important. At times, when the value of stocks are pretty low invest your money in stocks but when the values are high, wait for the right time, and in between put some of your money in bonds and mutual funds.

4.Invest as per the strategy and review the returns at regular interval:

After finalising your goal and strategy, start investing on a regular basis. While doing so, please make sure that you review your returns on a regular interval and match the same with your planed financial requirement. If you find any deviation from the same, try to rectify it buy choosing and alternative investment strategy.

Happy Investing!!!