Make money, invest smartly

HELLO FRIENDS
Many of us delay the process of investing either for the fear of choosing the wrong investment option or thinking that we do not have enough money. First of all, it is important to know that investing is a process, not a one-time activity.

Therefore, it is not necessary to have a lump sum to start investing. Thankfully, there are smart investment options like mutual funds that not only allow you to begin your investment programme with a modest sum but also provide you the best in terms of variety, liquidity, flexibility, tax efficiency and professional management of your hard earned money.

Besides, by investing regularly over a period of time, you can build up capital as well as reduce the impact of short term volatility. Remember, investing is a very simple process that requires planning, perseverance and time. However, if you want to be a successful investor, you need to follow certain Do’s and Don’ts. Here are some of them:

Always plan your investments

Most investors start the process of investment without determining their investment objectives and deciding the right mix of equity and debt. There are three simple steps that can help determine an action plan. Firstly, you should make a list of personal and financial goals in the short, medium and long-term.

For example, in the short term, you may want to buy a car; in the medium term

you may aim to provide for children’s education; and in the long run, retirement funding could be an objective.

Secondly, you need to assess your current position in the financial lifecycle. Thirdly, you must decide as to how much risk you are willing to take while investing. This is particularly important as different financial objectives require different investments.

Take help from professionals

It is quite common to see investors making wrong investment choices as they do not consult professionals. It is vital to deal with a professional and qualified advisor who has the knowledge and expertise to offer the best solutions in terms of working out investment plan as well as selecting the right investment options for you. In addition, a professional can ensure that you remain on course of achieving your investment goals. Make sure you spend time to find a right advisor for yourself before you begin investing.