INVESTMENT as a Beginner

Basically when we hear the term “Investment” the first thing that comes  to our mind is “Money”, and the various schemes available in the market to double our money and dreams of getting rich faster and that’s what exactly the term which are used by the sales person nowadays to sell their product.

Personally  I came across to this term at the age of 16 when I started taking interest in banks and Equities activities done by my Dad. Over the time I  learned the actual difference between the Investments and the Speculations which is the most common mistake that people make today in understanding.

Lets see the definition of Investment available on Internet:

“An asset or item that is purchased with the hope that it will generate income or appreciate in the future”.

Investment in my Opinion:

I feel like investment is a collection of assets that we develop over a time with a aim of decent appreciation in its value for meeting our certain goals and to get financially independent and also liquid enough to be utilized in case of financial emergency.

What I usually advice to people is:

Start making investment at an early stage of your life:
Its never late!, Start with the small as there is no rule that says heavy investment bags high profits. There’s lot of options available in the market and depending on your risk taking ability you can opt for a systematic and steady approach which will definitely lead to higher returns in the future.

Diversify your Investments:
Long back i read and i still believed in this lines “Never placed all the Apples in one Basket”. Infact had personally experienced, where with a greed of higher returns we placed all our investment in one product and at the time of emergency we incurred a heavy loss in returns. Diversification helps in maintaining a proper balance and at times it had proved a best methodology in investments.

Review your investment periodically:
Just as our vehicles require maintenance, the same way our investments does requires our periodic atttention as well. Make sure the purpose of the investment is on track and meets the way it was planned while the time of starting the same. As per the situation and needs its always advisable to alter or update your investments.

Be Practical about your Investments:
“Ahh !!! Its my first Fund”…. “My Girlfirend gifted me this gold coin”… etc. are the common words people use. With times i had seen people do get emotionally attached with their investments and assets. Creating wealth is an art and making an practical investment by staying focussed for appreciation is one of the important aspect.

So to conclude the same, start your investment slow and steadily and lets all have a healthy financially fit life ahead.

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