With Sensex crossed 61k & Nifty crossed 18k, every other individual must be attracted to the stock markets. In today’s time when an individual is working hard for the money, it’s high time to let the money work hard for you.
One should understand their own risk appetite for easy investment strategies. If a patient investor according to him chooses wisely, in reality, those are zig-zag investments. Watching investments on a regular basis is like watching the water on a stove with anxiety when it’s gonna boil. Investments tend to go up a little by this hour and then may go down a little the next hour. One surely gets into the “shoulda, coulda, and woulda” of the investing universe. What an investor should do?
The universal truth is that one will neither buy stocks on the floor nor sell stocks at the ceiling. Much of the market is unpredictable since none can read the thoughts of the millions of investors be it huge or small. And a good financial planner will never suggest that investing all the hard-earned money in one plunges instantly is the right way to go.
In today’s era, markets are more volatile and irrational in the short term. Hedge funds, governments, big financial institutions, and other massive players are moving billions and trillions of funds at a flash velocity in and out of the market. With the advent of Internet technology, huge amounts of money can zip around markets and economies at the speed of a mouse-click, throughout the day. This is why one should topple the entry into the market.
Let’s say, a newbie investor wants to invest Rs. 10,000 or more, we at MyFinopedia suggest starting off investing a three fourth of that and buying a shield product for the rest 25%. Unless you have only a small amount to invest, it’s always good to have some investable funds on the sideline — preferably earning interest — while you wait for opportunities. The shield products can be general insurance, term insurance, health insurance, motor insurance, wealth insurance, etc. investments can be made in different products as per the fund amount to be allocated and the risk appetite inclusive of the financial goals of the investor and the time required to achieve those goals.