Stock investments in INDIAN SHARE MARKET are one of the best avenue to generate GREAT wealth in the modern life.
Before Investing in Indian Share Market Must Be Keep In Mind
1: Understand Your Investor Style
Every investor is unique. Hence, you must know you financial risk capacity. Also you must know basic of stock market before investing in share market.
2. Invest in STOCK which business you can understand
When you track such stock there no, news and related industry it should be very easy to understand. There is nothing worse that buying stock in random even Warran Buffet also stayed away from IT stocks for many year
3. Diversify
Since stock investments carry market risks, it is important to make efforts to reduce the risk of your equity portfolio as much as you can. One of the best ways of reducing risk is diversification. Here’s why –
- If you invest in too many banking stocks and some policy change or international event impacts the banking sector negatively, then a huge part of your investment can suffer. Hence, while investing ensure that you diversify across sectors and industries.
- We all like to bet on the dark horse. In the share market, stocks of small-cap companies are the proverbial dark horses, and stocks of large-cap companies are the defending champions. While choosing either is your decision, it is better to invest across all market-caps.
- My portfolio formula for India Share Market: 20% Small Cap, 60-40% Mid Cap, 40-60 Large Cap
4. Track your Investments Regularly
15 min in a month for your finance health : Like everyone says you should give daily 1 Hr for your mental and physical health on top of I say you should also give only 15 Min in a month for your financial health where you can check your equity portfolio stocks trend and make decisions to accumulate, to exist or to book profit.
Happy Investing !
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