Let us know what things the youth should take care of before landing for investment in the market.
The youth of India are attracted towards investment. Millions of people have turned to the stock market during the epidemic. In September 2020, India’s large security depository CDSL (Central Depositories Services Limited) has seen an unprecedented 25 per cent increase in demat accounts, touching a record high of 25 million accounts. It is interesting that most of the new accounts have been opened by youths between 25 and 39 years old. Let us know what things the youth should take care of before venturing into the market for investment.
Set your goals
Whether you leave college now and want some extra money for a new smartwatch or a deal before the age of 30, it is important that you set your short and long-term goals before your investment journey. . Keep in mind that you see your reality.
Assess risks
Before starting the investment, see how deep you can go in it. It is always safe to start small and go on with the journey. Look at your risk tolerance level very closely and decide where you want to invest money. Your dreams come from the heart, but this step is completely decided by the mind.
Diversify assets
It is not a hidden thing that the stock market keeps fluctuating. Distributing it across assets is the way to protect yourself. You will not be able to avoid risk completely, but with some good choice you will be able to control it. Make sure that your portfolio does not depend on any one company or industry.
Keep your expectations under control
According to 96-year-old American big investor Charlie Munger, the big money is not in buying and selling, but in waiting. He is right. We expect huge returns immediately. This is the reason that most investors and traders are not able to stay in the market for more than six months.
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Start investing early
it is very important. Start investing when you have time. Start small but start somewhere. And invest money every month. If you choose quality assets, then invest regularly and wisely.
(By: Amit Dhakad, Co-founder, CEO, and CTO, Market Pulse)