Making an investment plan involves more than just choosing a few stocks to put money in.
You have to consider your current financial situation, your goals, define your timeline and how much risk you’re willing to take.
The first step is to define your present financial situation. Understand how much money you have to invest.
Evaluate your monthly disposable income after expenses and emergency savings - and decide how liquid you need your investments to be.
The next step is to define your goals. Why are you investing? What are you hoping to earn money for? You also need to set a timeline.
How quickly do you want to make money from your investments? Do you want quick growth, or slow and steady growth?
The younger you are, the more risk you can take, since your portfolio has time to recover. If you’re older, seek less risky investments.
Risky investments have the potential for significant returns, but also major losses.
There are many avenues you can invest in. Your budget, goals and risk tolerance will help guide you.
Consider securities like stocks, bonds, mutual funds, long-term options… but whatever you choose, make sure you have a diverse portfolio.
On and off, check in to see how your investments are performing and decide if you need to rebalance
You should make any changes necessary to continue working towards your goals.
Once you have made your investments, don’t leave them alone.
focus on getting information about all the different types of investments available.
Don’t hesitate to ask for help from a professional, and start investing sooner rather than later.
Becoming a good investor requires research and experience
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.