Investing in stocks, stock market, stocks, day trading, investments, capital investments, market risk, diversification, diversified portfolioTo stay invested during market turmoil, the investor must enter the market with a clear objective and not just to make quick returns.

Since investments in stocks are capital investments, ordinary investors run the risk of losing the amount of capital invested. Therefore, one must have time to study the stock markets and accumulate experience by making small investments, before making big investments.

“The availability of a variety of investment options is unparalleled compared to the recent past. Global markets are ready to trade at your fingertips. However, a millennial investor must be aware of the risks of information overload. It is easy to get caught up in FOMO (fear of missing out) trading, as They chase overvalued assets at higher and higher prices.” Viraj Nanda, CEO of Globalize, “Therefore, it is essential to conduct due diligence on both the producer and the credibility of the source.”

To stay invested during market turmoil, the investor must enter the market with a clear objective and not just to make quick returns.

“More time should be spent understanding the product rather than looking at only expected gains. From a risk perspective, it is important for an investor to assess the financial position, discretionary income, long and short term financial goals and the potential for permanent loss of capital before taking positions in risky assets. The risk should also be taken from the total wealth or the overall level of the portfolio.In other words, the individual risky assets should be evaluated in terms of their overall effect on the individual’s wealth.Nanda said, “Putting 2 per cent in a risky asset may not affect the total wealth, in Whereas a large position can have negative effects.”

To minimize risk, one should not invest all the money in one stock, but build a diversified portfolio by investing in shares of different financially strong companies involved in unrelated businesses. Mutual Funds (MFs) offer diversified ready-made portfolios, the benefits of which can be enjoyed by investors by investing relatively small amounts.

The importance of diversification should be emphasized at this point. The millennial investor should aim to build a diversified portfolio across the globe and asset classes. When investments are diversified, fluctuations in any section of the market are unlikely to have a significant impact on the total portfolio. “With these basic principles of investing in mind, an investor can truly take ownership of their financial journey,” Nanda said.

Want to build a global portfolio? Here’s how to invest in foreign stocks

Markets such as the United States offer dozens of investment opportunities both for individual stocks and for exchange-traded products. There are also platforms that offer curated products and provide an investment-oriented approach. An investor can take advantage of these multiple avenues. While it is necessary to follow daily developments in the market, it is also important to understand the historical perspective and invest in the long term.

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