How to invest in share market for beginners: 8 top equity tips here
How to invest in share market for beginners: We provide top equity tips here for investors to saferguard their investment and handle volatility in the stock markets to thereby, emerge much richer. It takes a strong investor to stick to these simple steps, but if done properly, s/he will emerge much better off.
Define your horizon. The definition of long-term is different for each one of us
Define your financial goals and work on an asset allocation model between equity and fixed income
Do not buy at every low because we don’t what is the actual low
Invest through Systematic Investment Plans (SIPs). The rupee cost averaging is an unbeatable champion to tame this inherent quality of markets
Invest at least for a 10-year market cycle. Historically it has delivered
It is always advisable to take market exposure through Mutual Funds. They provide diversification, and professional management
Can invest in a 70:30 ratio, 70% through SIPs and 30% through lump sum
Every significant period of market correction is followed by period of higher returns. Hence, you must remain invested while the markets are volatile.
(By Suren Kochhar - chief business officer, Indiabulls Asset Management Company Limited)