Best investing strategies portfolio guide for first time investor / beginner to invest money
Investing money is not all about putting money in any of the available options. It’s an art. It requires some logic to get maximum returns.
People who became rich with their unique style of investing have passion for investing. They never worried about losing money. For them, losing money is, as simple as, experiment failed. That’s it. They try to find new strategies to make good investing portfolio. They never forget to learn the lessons. They will try to learn lesson both from successful investing and failure investing. If investment gets successfully, they will start exploring, is it because of their logic worked or something else? If they lose, what was the reason? Where did they fail to guess / gauge the realities?
To make THE BEST investment portfolio, you should keep on finding new strategies to invest money. This is a must for beginners or who are new to investing.
Never think about “safest” investment options if you really want to get rich. In the history, no business man / investor became rich by investing in savings account or fixed deposits. It doesn’t mean that, you should go for risky investing options always. You need to explore various investment options with pros and cons of each investment option available and start investing.
You need to learn to make your investment portfolio with different types of investing options. It should have perfect blend of risk factor and return on investments. Don’t put all your eggs into one basket.
Start changing your attitude towards money. Try to think beyond your peers and explore the areas untouched. Many of the investors, who became rich, invested their money in not much untouched and unexplored areas. Rest of the people followed next.
Below are some of the things you need to consider before investing:
- How much money is available to start investing?
- What are available investment options?
- What do you do if you lose all your money? Will it affect your life style?
- Your age?
- What is the expected duration of your investment?
How much money is available to start investing?
Check how much money you can invest comfortably. If possible, calculate your net worth to get clear idea of your finances.
Also, decide how do you want to invest? One time investment? Or, invest at regular intervals like, every month or every week.
If you choose to invest all your money at one shot, prefer safe investment options like, post office investments, fixed deposits, bonds, etc.
If you choose to invest at regular intervals like, every day, every week or every month, prefer to go for stocks and mutual funds. Reason is, when you invest in risky options at regular intervals, risk factor will be less due to averaging, and returns will be high.
What are the available investment types / options in the market?
Explore all the investment options available to you before you actually start investing. Analyze the below things while exploring each investment option:
Minimum investment amount required
What is the minimum investing amount required. It can be 20 rupees, or 1000 rupees.
Approximate expected returns
This you can calculate based on the previous track record. Thought, it may not be accurate, but can give you some insight.
Check how much risk is particular investment. For example, fixed deposits can give you 100% security to your investments whereas, stock market investment, it’s not. In stock market, you may get 100% returns, or you may lose all your money. So, check risk factor before investing in any investment option.
Know what is the minimum duration required to start invest in any option. For example: In mutual funds, you must invest for minimum of 3 years. You can’t withdraw your investment within 3years.
Can you bear if you lose all your money? Will it affect your life style? Do you have emergency fund?
Consider the worst case scenario which can happen. What will you do if you lose all your investment money? Can you bear it? Be prepared for everything. Don’t plan anything on future income. Never ever consider future returns as, take it for granted.
Age is one of the main factors you need to consider before you start investing. If you are under 30, you can try risky investment options. If you are between 30 and 40, then you can try risky investments but, you also need to maintain some safety investment option.
Logic is, if you are broke in early age, you will have enough age/time to work and earn money again.
What is the duration of your investment?
How many months/years are you planning? Decide it on priority. Once you start investing with some time duration, make sure to continue it. Loss of continuation may make you to lose some of your investments. Some investments options require you to invest and wait for some period to get maximum return on your investment. Ex: mutual funds, national savings certificates, etc…