Here's an interesting fact for you, a majority of Scripbox members are first time investors attracted by the simplicity and transparency of our service. And the smart ones don't hesitate to ask us a lot of questions - it's your hard earned money after all.
We have covered many of these questions in our articles over time and decided to put them together at one place for you.
#1. “How do I figure out this investing thing? Where should I invest?"
Our Answer:A lot of us believe that investing has just one purpose. But, before you start investing, you need to know about the four different kinds of money you have in your life. Each of these requires a different way to invest.
Find details in: The 4 Kinds Of Money In Your Life
#2. “I want to invest but I feel I need some sort of a plan. How do I go about planning for my future?”
Our answer: A good plan is one that helps you achieve a good balance between the four kinds of money and gives you a series of actionable steps that you can take. Plans can get very detailed and take up a lot of time. We've also seen people delay investing while waiting to come up with a plan. So we came up with a simple one that works for everyone.
Find details in: A Financial Plan That Works For Everyone
#3. “I have just started my career and I want to start small. I also don't want to risk the little savings that I have. What do I do?”
Our answer: It's a genuine concern and our answer is simple. Go with debt funds if you want to start with something more stable in the short term.
This article shows why debt funds are ideal for beginners when it comes to starting their investment journey. On second thoughts, it doesn't matter what stage of your career you are at, if you are new to investing this article is going to give you a good starting point.
#4. “I keep hearing that investing is for the long-term. Why is that??”
Our answer: Investing is both for the long term and short term. But most of the money we save up is not going to be needed until we stop earning - between 20-30 years later. Over this period, smart investors go for equity (stocks and shares) based solutions to beat inflation. While stocks have a bad rep for large fluctuations, this is prominent only in the short term and over the long term, historically investors have beaten inflation handsomely.
This article actually shows you the journey of a long term investor and what happens to their money over the years, through the good times and the bad times. Now this is one article we wish everyone went through before they invest in the stock market (whether direct stocks or mutual funds).
#5. “Everybody keeps saying, do a SIP, SIP is awesome. What is this thing? Should I do a SIP?”
Our answer: SIP, or Systematic Investment Plan, is just a way of saving and investing a sum of money each month over a period of time. It helps you automate disciplined investing, start early, and invest even if you have small sums (as low as Rs.1000) to spare.