• Pay yourself first every month
• Automate your investments through ECS
• If you are a beginner, do not invest directly in the stock market, instead take equity exposure through mutual funds.
• For long term capital building safety of principal amount is important.
• Make sure your savings are not sitting idle, they should stay invested to beat inflation otherwise while you are thinking that your savings would make you rich over time, actually they would get eroded by the monster of inflation in the long run.
• Your investments should depend upon your financial goals and objectives, don’t follow heard mentality.
• Equity investments are always good when done from the long term perspective, suggest you also invest in equity with long term perspective.
• Diversify your investments. Do not put all your eggs in one basket. Put no more than 10% of your total investments in one company.
• Build a contingency fund of liquid cash to meet your emergency needs.
• Take a balanced approach to investing. Avoid risky investments as well as an overly cautious approach to Investing.
• Monitor your investments once a quarter and take corrective action, if required.
• Do not try to time the entry and exit of your investments.
• Adapt SIP (Systematic Investment Plan) for your investment and then you would realize that every time is a good time to invest if you have a long- term outlook and if you keep investing regularly. You will enjoy the benefit of averaging and see the power of compounding.
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