Investing for wealth
May 1, 2023
DD Planet
Savings is the first step. Next comes investing. Unless and until we know to earn enough on our saved money, we can neither beat inflation nor create wealth or meet our goals.
Here are quick tips to help you invest wisely:
- Be disciplined. Depending on your risk appetite and goals, you can choose to stay invested in equity (stock market) or debt (deposits etc.) or a mix of both. But, irrespective of what you choose, it has to be a long-term strategy.
- Investing in real estate should be done after proper analysis and due diligence. There is a difference between buying a house for self-use and buying real estate for investment purposes.
- Never invest all your money in a single product. Keep diversifying regularly. Balance your risk by spreading your investments with a right mix of stocks, mutual funds, bonds, deposits, gold and real estate etc.
- Choose gold bonds and gold funds instead of jewellery when investing in gold.
- Keep emotions aside while investing. Do not buy a product on hearsay. Analyse all the competing products available in the market yourself and learn to exit at the right time if it is not working.
- Your goal should be: Maximise profit, optimise risk.
- Invest regularly even if it is a small amount.
- Keep tracking your investments from time to time. Do not be afraid to make necessary changes (changing the product or amount) so as to align it with your personal goals.
- Ignore the short-term fluctuations in the price when you have invested for the long-term and the product fundamentals are strong.
- Last but not the least, keep patience. Always remember, wealth is never generated in a single day.
