In the last post I explained about the various kinds of options available for Investments. Now it is the time to decide how to handle them wisely.
It is clear the investment which gives you the maximum returns in the best investment.
Investments can be handled by experts or by you. You can handle best your investments because of flexibility in decision making. For an instance a fund manager will handle a MF while a portfolio manager may handle your equities investments. Equities can also be handled by you if you have some kind of knowledge of buying and selling equities smartly.
In equities the funda is of being informed. A person who looks for information from various possible aspects may be able to earn a higher profit than others who invest blindly.
10 principles to handle your investments wisely :
- Invest in best possible investment.
- Think and invest.
- Analyse before you invest.
- Think of the future profit before investing.
- Check out for some alternative investment opportunities.
- Diversify and invest.
- Keep a track of your investments.
- Book profits when you feel its right.
- Don’t follow others blindly.
- Believe in your self (Last principle but one of the important one)
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{ 1 comment… read it below or add one }
Hi Chirag,
I would like to add a few more aspects over and above what you have enlisted:
1) Diversify your investment by Time period.
2) Do not marry Stocks, ultimately they’re meant to yield you gains.
3) Rectify your error irrespective of losses accruing.
4) Do not over-indulge into trading.
5) Do not indulge in leveraged trades (F&O) unless you’re confident of managing it properly and diligently.
6) Spread you equity investment by SIP method (just like MF), some brokers do give such facilities.
7) Equity investments in Mid-cap and small-cap stocks should be properly analysed, before putting your money.
Thanks Chirag for letting me push through these points.