Investing

5 insightful investing tips for long-term money making

For a long-term perspective, equity and equity-related investment options are highly preferred by most of the investors.

long term investment plan 5 insightful investing tips for long-term money making

A person investing any amount of money should evaluate various possibilities of risk involved in the investment option.  |  Photo Credit: Representative Image

New Delhi: The purpose and objective of investment depend on the individual’s personal requirements, upcoming needs and goals. Most of the investors remain in a lookout for an opportunity from where they can earn quick bucks. However, making large gains incorporating legitimate investing options in a short time is very rare.

Investors with a long-term perspective should opt for investment options which provide higher returns in a long run as compared to the conventional investment schemes such as bank fixed deposits, recurring deposits, public provident fund, post office savings scheme and other government-backed options.

For a long-term perspective, equity and equity-related investment options are highly preferred by most of the investors. The differentiation may arise on the basis of understanding of an asset, the availability of time and funds and the risk-taking capacity. People who are having adequate funds rightly available and are willing to invest in the market but neither have the time to assess the markets nor have the ability to analyse the trends often look for good mutual fund options through which they can put in the money periodically.

5 investing tips for long-term money making

Believe in your research 

Individuals who are keen on investing in regular periods should believe in their own research, not on anonymous recommendations or advice. The same buying or selling recommendation may vary on the basis of the investment horizon and money invested. The target prices and stop loss levels provided by any brokerage house in the public domain may turn negative for a set of individuals as all the recommendations are derived after keeping certain factors stagnant.

Diversify 

Putting all the funds in the single lucrative investment option may lead to the opposite of the proposed objective. It is advisable to diversify your investment, much better if the funds are divided into different asset classes altogether. An investor should not panic at the time of sell-off and market crashes as that time there might a golden opportunity to go for more profitable bets. During the time of panic sell-off, a number of pricy assets turn cheap and it is the best option for an investor with a long-term perspective.

Think long-term 

As far as the investment in equity and equity-related options are concerned, an individual should think according to a long-term perspective. The equity and equity-related options such as Equity Linked Savings Scheme, hybrid mutual funds, growth funds give a better return in the long run which and also minimises the risk aroused from market volatility.

Seek advice from experts 

Be your own boss when it comes to investing the hard-earned money but if you are not comfortable in understanding an asset or don’t have the right tools to analyse the asset then you should seek professional advice from the experts of that field. Taking a financial awareness session of a certified expert might also resolve your queries. The advice is taken from an independent market analyst will be effective as their recommendations will be relatively more neutral, unlike an expert who is associated with a leading fund house or a research firm.

Evaluate risk factors 

A person investing any amount of money should evaluate various possibilities of risk involved in the investment option. The risk may arise from a change in company policies, shuffle in government (state or national), ongoing tussle between the company’s management and executives.

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Loknath Das

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