Nowadays, in India, Investing is becoming a trend of modern youth. But my friend investing is not just about money. It’s about everything you put somewhere to grow automatically, maybe money, maybe knowledge, perhaps time. Rather than that, Investing is great learning for everyone, but before investing your TIME, MONEY, KNOWLEDGE, you should understand the value of Discipline and Patience.
Many people think Stok Market is a one-night Money making game, People are always looking for Multibaggers, but it does not work like this. A stock market is a place where you can buy the share of the company listed on. It’s just like value Investing.
WE DON’T HAVE TO BE SMARTER THAN THE REST. WE HAVE TO BE MORE DISCIPLINED THAN THE REST.
Investing: Simple Definition
Investing means the distribution of funds with the assumption of creating wealth in a long period is called Investing. Investment is not just about money. Invest in your knowledge, Invest your time to build, educate yourself, Also invest your money to build long-term wealth.
How to Invest in Your Knowledge
Knowledge is the only thing that no one takes from you. I am not saying just reading any textbooks will grow your knowledge; always try diversification learning. Listen to podcasts, Read any Books that you love to read, watch interesting videos on different topics that could be anything that you’re interested in.
Knowledge building always works like your main assets that will grow day by day.
How to Invest Your Time
Time is an asset that everyone doesn’t have. When you are young, you have so much time, but you don’t know how to use it. You have many things to do when you are old but don’t have time. Time is an important asset because you can’t buy it. You need to learn how to utilize your time. Time management is the biggest key to building your wealth and assets, Passive income, etc.
How to Invest Your Money
Money is an asset if you use it in a disciplined way. Invest your money to build knowledge, Invest it to make your networks, Invest it to develop your Assets ( Stocks, Crypto, Government Bonds, Real Estate, Gold Bonds, Fd). According to your age, determine your Risk portfolio management, Later on, We’ll talk about Portfolio management Risk Management, Diversification, etc. BTW investing your money in the stock market is very easy. You just need to follow some simple steps
Create a Demat Account
Create a Demat account from any app that you prefer no recommendation. If you don’t know any then here are some of the Best In INDIA
a. ZERODHA
b. Upstox
c. Grow
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Select Stocks/ ETF/ Gold Bond
After your Demat account verification, Start your technical analysis. Research about the stocks and then Invest a Lumpsum amount or do SIP. The main thing is to Invest for a Longterm Goal, Invest in a disciplined manner. It will take time to grow your portfolio, so don’t check your stock daily. Once you have done your Investment, that’s it; wait for a long time. Your assets will generate 15% CAGR, or you should expect 15% CAGR(Compound Annual Growth Rate).
“Wide diversification is only required when investors do not understand what they are doing.” ― Warren Buffett
The Pros & Cons of Investing in Stock Market
Investing is like a habit, but investing in the stock market is risky. Always you can’t gain profit there chance of losing your money. The terms like Bull / Bear, Ups / Down, Scams, Other consequences influenced the market as it will go up or down. So you need to understand the mechanism of the company, the technical terms, the profitability, Growth ratio, etc. Always research before putting your money. Don’t be confused about investing if you know the ideal portfolio. Read more about the perfect or best portfolio according to your age.
The Pros of Investing STOCK Market
- Develop the Country Economy
- Helps the company to Grow
- You’ll Generate more return than Inflation
- Easy Buy and Sell Stocks
- Create Your Wealth
- Generate Passive Income
The Cons of Investing STOCK Market
- Risk Of losing money
- Risk of Closing company
- Influenced UPs and Downs
- Take time to Research
- Depending on third party development
Things You Should Focus on Before Start Investing Journey
Health Insurance
Before you start investing your money, focus on buying health insurance. This will bring a change, and you won’t feel helpless if something happens to you or your family. Always think about the worst-case scenario and try for a better option. Health insurance will your base and help to save your emergency fund.
Buy a Health Insurance for You and Always Buy A Different and High cover Health Insurance for Your Parents.
Life Insurance
Before starting investing, buy Life insurance. If you are the only income source to your family, if something happens to you, Your family needs to survive or find another income source. Life Insurance will help in that matter. Buy Life insurance and forget about returning it only for the worst-case scenario. Don’t invest in any pension scheme. This will not be going to help. Invest in others that will cover any Sudden death.
In Ideal, Case Life Insurance Cover Should be 10 to 15 times of your Annual Income
Emergency Fund
An emergency fund shouldn’t be in any high return or high-risk category. It should be in a high liquidity fund. In an emergency time, you will use that fund. That emergency time can’t hamper your Investment Journey.
Emergency Fund should be 6 to 12 times of your Monthly Income Don’t aim to Grow them Aim to Get that Fund in any Emergency.
Conclusion
I hope you understand the major points, and the rest depends on experience and discipline. It would help if you focused on your learning than on your earnings. If you have any confusion, comment down below. I’ll bring more content about investing and portfolio management to check regularly. Thank you for your time.