In this article, we Learn 10 basics of Investing for Beginner. This will help you in making an investment.
we discuss on most important topic “10 basics of Investing for Beginner”. I hope this will help you in making your first investment.
Basics of Investing
1.Decide your financial Goal: Set out your Short Term and Long Term Goals. Thus, I personally advice you to set goals based on your needs.
2.Risk Factor: Most Important factor of investment is Risk. So that, you decide how much risk you can able to take?. If, you take high risk than get high return. Basically, three type of Risk that every people can take. Risk factor is the most relevant basics of investing.
3.Expected Return: Amount of Money you will expected to receive that calls Expected Return. Hence, you will decide what type of return you want. Whether, it is Fixed Returns or Variable Returns. Risk is based on your risk horizon.
4.Risk V/S Return: Direct Relationship between Risk and Return. Higher the Risk than Higher the Return. Similarly, Lower the Risk than Lower the Return. Accept higher risk than there will be changes of getting a higher Profit.
5.Period of Investment: you want to invest for a short or a long duration. People will get more return if they invest money for long duration.
6.Know Different Assets classes: Before investing in any assets, analyse the various classes of Assets. And, also their characteristics.it will help in investing your money.
7.Right Assets Allocation: Always, done a right proportion of Debt and Equity in your portfolio.
8.Know about Market Trends: Be aware of the upward and downward trends in the market. Thus, frequently check the fluctuation in the market.
9.Learn about Diversification: Learn about the Diversification of the fund. And, add in your financial portfolio.
10.Financial Literacy: You should know about the sources where your money is going. Because of that, what you will get in return.
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