Starting Off Investing In Stocks? Here's How To Start By CIOReviewIndia Team

Starting Off Investing In Stocks? Here's How To Start

CIOReviewIndia Team | Friday, 30 October 2020, 19:49 IST

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A streamlined way to make wealth is by making investments. When asked about good investments, long term investors replied that good investments are inevitable in stocks. They said that market volatility when the stock market downturn, resulting into stock selling, it is also a good investment time. New-age investors claim that online investment is a way to get started in the investment game.

The best thing about investment is learned when actually investment is completed, whether successfully or unsuccessfully.

Stock investments do not depend on whether a person is wealthy or not. Investments can vary from Rs. 100 to infinite figures.

A person, who knows to read market trends and calculate the probabilistic risks involved, can be termed as a good investor.

Investment involves kind of saving money while staying busy with life. With the saved money, gainful investments can be reached with achievements of rolling back the amount back to the investment field in hope of gaining more.

Thinking about starting investing? Here’s how you can plan and move ahead –

1.Spot Where To Invest – Experts suggest that there are various ways of approaching a stock investment. You can start off by searching the best online investment platforms and you might want to take help of your online brokerage. While searching over the internet, you will find a plethora of online brokers ready to guide you through the process. Or else, you can connect with a stock investment consulting firm. The firm will ask about your investment goals and link you with the investment areas according to that. Both of the options are equally good, you can go for any of the plans.

2.An Investment Account Opening – For investment, you definitely need an investment account to carry forward your plan. It is with the opening of brokerage account. You can either take the help you the consulting firm or you can search on internet and open an investment account. The online portals have minimal charges for opening the account. But however you open the investment account, do read the documents carefully.

3.Stock vs. Stock Mutual Fund – While mutual funds allow you to purchase small shares of different stocks within a single transaction, the stock is an investment made in a single company. If you purchase small shares of different stocks, you actually own the small shares of the company.

Mutual fund is diverse in cause which gives exposure to a height of stocks.

Experts recommend owning shares in a mutual fund when compared to a single stock as it is somewhat not riskier.

4. Chart the Budget of Investment – Do you have the amount ready at hand for investing? If yes, it’s fine! If not, then you need to plan and pen down the budget investment. Study the market graphs, and equate what amount of money you need to invest and keep the rest aside. It is advisable to focus on long-term investments.

5. Stock Portfolio Managing – Do manage your investment portfolio from time to time, so, that you can revisit and check the investments you made. You will stay updated about your stocks and stay aligned with the investment plans.

Following these steps, you can plan your investment today, but do remember the cliché phrase ‘Investments are subjected to market risk, liquidity risk, concentration risk, credit risk, reinvestment risk, inflation risk, horizon risk, longevity risk and foreign investment risk.

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