Investing is a step wise process involving understanding of your risk appetite, evaluating all the options available and then following it up with a plan
Step 1: Assess your attitude towards investing
When building a long-term investment plan, it's most important to understand yourself as an investor, your emotions, your fears, and your tolerance for risk. This would help you choose investments that best suit your profile and your long-term goals.
Step 2: Understand the investment options & follow a plan
A) Investment options
Direct equity
Purchase shares of public listed companies.
Fixed Income
Get into fixed deposits or interest bearing instruments.
Mutual funds
Purchase funds that suit your requirements.
Others
Purchase gold, realty etc.
B) Following a plan
Have a strategy –
Make an investment plan based on your risk profile and asset allocation and match whether it would help achieve your goals.
Be disciplined in your approach –
stay focused, rather than timing the market spend more time staying invested in the markets.
Step 3: Monitor your investments periodically
Markets are dynamic and changing, so you need to keep track of where you are headed at regular intervals.
Step 4: Rebalance portfolios when required
As you move ahead in life towards achieving your goals, your risk profile and asset allocation also change, and your
portfolio must be realigned to accommodate this change.
The need to rebalance also arises once you achieve set goals.
Why Invest?
