Beginners often find the equity investment market thrilling and daunting at the same time. The demand for stocks looks intimidating for novices; however, there is a massive potential for consistent monetary growth once you understand how it works.
One should invest time in understanding how this market functions with some basic rules to remember before taking the plunge.
Kavan Choksi speaks about the rules to remember
Kavan Choksi is an esteemed businessman fond of technology, business, and photography. According to him, before investing in the equity market, beginners should keep in mind the following basic rules for higher investment yields and profits-
- Discipline with a plan- Discipline is the key to successful and lucrative equity investments. Create a project with a focus on both short and long-term goals. This way, you can get an investment strategy that is in sync with your goals.
Besides investments, inculcate discipline in your savings too. Stick to your expenditure limits and keep aside a portion of your income as savings every month.
- Track your investments- Most people invest and forget about them altogether. Keep track of all your investments. Evaluate how your investments perform and make changes to your investment portfolio, as and when needed.
Be aware of financial schemes and news. It will help you to leverage your investments from time to time. If there is any confusion, consult a financial advisor experienced in the field for advice.
- Stay away from the “herd mentality”- Beginners often follow the steps of their fellow investors. They want to tread with caution since they are new to the field. Moreover, novices like to take in suggestions and tips from them, especially when buying and selling financial investments.
Business experts in the field caution beginners from falling into this trap. It often causes a dent in your investments that you regret later. Do your research, read credible sources, and consult a financial advisor, if needed.
- Diversify your investment portfolio- Never place all your “eggs in a single basket.” Keep this old-age adage in mind for investments as well.
Most individuals land up re-investing in mutual funds and equity that have performed well in the past. Here, their logic is simple- they want to reduce risk and make more money.
However, if you examine the financial world, it is constantly evolving. You need to explore new and lucrative options for investments.
- Stay consistent in the long-term- It is tempting to make quick investments for short-term gains in the equity market. However, if you want to witness growth in your money, consider long-term investments.
Focus on investing for at least five to ten years to enjoy a much higher return on your investments.
According to Kavan Choksi, beginners in equity investments should keep these five basic rules in mind. Once you master these rules, you will become an investment expert with success! When you educate yourself about the market and keep these simple rules in mind, you will witness higher money growth for all your investments with time.