Being a Smart Investor might not be something that you are born with but it is a skill that you can learn over with time. Before making investment decisions you must empower yourself through information about the risks and rewards of investing. This can help you avoid any potential losses. Following are hand tips that make you smart investor.
If investing is all about making money, it is best to have a plan regarding how much you can invest and what is your investment target corpus over a period. In some cases, goal-based investing i.e. saving towards a planned future expense such as marriage, child’s higher education, retirement etc. might be the right way to go. In other cases, having a monthly investment target may be the better choice. What’s more, your investment plan needs to be flexible enough to be modified according to changing market scenarios and your own changing requirements. For starters perhaps it is best that your plan ensures disciplined investing as that will help you in the long term. One way to help you stick to your proposed investment plan is to opt for a systematic investment plan. The SIP route allows you to make small investments periodically and stay invested in the long term without stressing your finances in the short term. This can help you achieve your investment targets in the long term.
You might hear stories of people earning big on the stock exchange or generating 25% returns on their investments, but that is the exception to the general rule rather than the norm. You need to have realistic expectations from your investments and avoid moving your money around trying to chase astronomically high returns. As an investor, the first things to keep in mind is that it takes time to make money hence you have to think about the long term prospects instead of chasing short term returns. That’s why you should think with your head and manage your expectations keeping the long term view in mind.
Making investments regularly is definitely a virtue, however, investing all of your savings all the time can have unintended consequences. Allocation is all about spreading your money across different instruments – equity, debt, gold, cash, etc. in order to manage overall risk, liquidity and returns. Early in life, when you have fewer responsibilities, it might be ok to stay invested only in low liquidity investments such as equities. However, as your responsibilities increase, you need to have money available for emergencies. Hence the need to include some liquid investments such as cash and debt schemes like liquid funds and ultra short term debt funds into your portfolio. The exact allocation of assets across various investment categories is of course dependant on the financial responsibilities and unique investment goals of each individual. Thus, it might actually be a good idea to consult a financial advisor in case you aren’t able to figure it out by yourself.
Every investment comes with risks attached. It is just the degree of potential risk that varies from one investment to another. While government-backed schemes such as PPF are among the least risky investments, market-linked investments such as equity mutual funds are relatively higher levels of risk. Unfortunately many investors especially new ones often fail to recognize the simple fact that returns are not guaranteed in case of any market-linked instrument including potentially low volatility debt schemes. Do not make this mistake. Make sure you know about the risks associated with each and every investment in order to make an informed decision whether a given investment option is right for you or not.
You might have heard market experts say that market movements are mainly influenced by two emotions – greed and fear. Greed predominates when markets are moving upwards and some people start speculating that this upward trend will continue. While speculation by itself is enough of a detriment to successful investing, what’s even worse is that many a times, such speculation is funded by borrowed money. In case you are borrowing money to invest, it will hurt your financial well-being in the long term. A simple reason for this is the fact that you have to bear the cost of borrowing i.e. interest payouts which will eat into your future profits (if any). This is not an approach that promotes successful investments in the long term hence you must never borrow to invest. Instead, in case you already have outstanding debt, you should focus on paying those off first before you start making investments.
We provide you, with different investment services that are available, according to the degree of support you are looking for.
More than 25 years of experience working in the industry has enabled us to build our services and solutions. We are aligned and focused with our client’s success, and care about their investment as much as they do. We are determined to use our expertise and knowledge to further our client’s interests over the long term. Our focus lies on creating wealth by understanding fundamentals and true state of economy. Our practical experience of over a decade and in-depth research helps us to generate consistent returns in the market and professional risk management helps us to overcome market volatility.
We at Investment Point, believe that protection of your fund is a prime job and it needs to be addressed with knowledge and planning. Hence we follow a process of Financial Planning – Risk Profiling, Goal Planning, Portfolio structuring and portfolio tracking. We use a wide range of smart investment options to achieve the financial Goals of our clients such as Mutual Funds, Stocks, Fixed Deposits and other investment products for professional approach and steady growth.
Our Approach: Everyone is different. We have similarities, but in the end, we are all custom built. To do the best job possible, we think it is important for us to understand as much about our client as possible. In short, we approach each client and their investment program individually. We don’t drop people in cubbyholes.
The First Meeting: Gathering information is the usual first step, but ours will go beyond filling out an account application. We want to know who you are. What experiences you have had in the past. It’s not unusual for a first meeting to take more than one visit.
Expectations: Investment programs vary widely from client to client. Some clients are oriented toward the more volatile growth areas, while others opt for more secure income oriented programs. We think periodic update meetings are important – for both of us – so we recommend a quarterly meeting to review progress, discuss changes in your life or business, and to present our thoughts for upcoming program changes.