Here is a guest post from one of my colleague who predominantly writes on finance and investments. Hope you people like it and enjoy his knowledge to become a smart investor!
Hello readers, I am Subbu writing here a guest post for Mohan’s blog. I am privileged to write an article in this great forum of people. I write articles on investment basics and investment education in my blog. I plan to write guest articles on a regular interval to Codecritic’s readers. Let me get started with the basics on “Rules of Investment”.
Investment is a simple concept which is often complicate too much by investors. Always “keep it simple” and be “disciplined” in investments. There are certain rules that needs to be followed while investing for a longer term.
1.Identify your short,medium and long term goals.
2. For Short and medium term goals(2-5), park your money in fixed income instruments and avoid going the equity route.
3. For long term goals (>5 years), go for equity investing.
4. Keep it simple in equity investing. Go for good diversified mutual funds with good track record.
5.Ignore hot sectors or stocks which are being most talked about in televisions and newspapers.
6.Invest Regularly. Start a SIP(Systematic Investment Plan) in mutual funds to bring in discipline in your investments.
7.Execute “Buy and Hold” policy. Do not churn your investments often.
8. Last but not least, “Start Early”.