1. Very often, initial equity investments are done without proper planning, homework or understanding one’s requirements, as for first-time investors, identifying the right initial investment can be a challenge.
2. You have to be careful with your choice to ensure that you begin on a solid footing and build a stable foundation, to provide a sense of confidence as you move ahead.
3. Once you have made up your mind to invest in equity, make sure you are doing so for the right reasons, and not to make quick gains and exit, as Equity is an asset class that rewards you the most if you stay invested for a reasonably long period of time.
4. It is probably the only asset class that has the potential to beat inflation over the years, hence it is crucial to have the right attitude and understand the risks involved.
5. First-time equity investors should not treat it as a source of excitement, as investing is not a gamble, but a serious investment opportunity.
6. Equity mutual funds are the ideal starting point as it is better to leave stock-picking to a professional fund manager rather than doing so on one’s own.
7. Within mutual funds, first-time equity investors can opt for hybrid funds to get a taste of equities.
8. Debt-oriented hybrid funds typically invest in safe debt instruments, with very less equity.
9. If you do not know how much risk or volatility you can handle, an equity-oriented balanced fund will take you on a learning curve.
10. Those who are easily discouraged by market volatility, but want a flavour of equity in their portfolio, should consider a balanced fund.
11. While equity investments can yield spectacular returns, they can also lose money very fast, and for a first-time investor, a dramatic fall in the stock market may be tough to handle.
12. Those who can take on some risk can even opt for a pure diversified equity fund or an ETF.
13. After you get the hang of how the equity market is influencing the fund’s returns and are comfortable with it, you can try your hand at investing in stocks on your own.
14. However, make sure you put in only small sums that you are happy to experiment with.
15. Also, make sure you follow some basic investing rules:-
a) Invest only what you can afford to lose.
b) Avoid investing large amounts at one go.
c) Buy small quantities at regular intervals and try to get a feel of the market.
d) Avoid trying to time your entry.
e) Buy a stock in which you have strong conviction.
f) Ignore tips and hot trends.
g) Have realistic expectations of returns.
h) Be prepared to suffer losses initially.
I) Don’t succumb to emotions of fear and greed as stocks are inherently volatile.
2. You have to be careful with your choice to ensure that you begin on a solid footing and build a stable foundation, to provide a sense of confidence as you move ahead.
3. Once you have made up your mind to invest in equity, make sure you are doing so for the right reasons, and not to make quick gains and exit, as Equity is an asset class that rewards you the most if you stay invested for a reasonably long period of time.
4. It is probably the only asset class that has the potential to beat inflation over the years, hence it is crucial to have the right attitude and understand the risks involved.
5. First-time equity investors should not treat it as a source of excitement, as investing is not a gamble, but a serious investment opportunity.
6. Equity mutual funds are the ideal starting point as it is better to leave stock-picking to a professional fund manager rather than doing so on one’s own.
7. Within mutual funds, first-time equity investors can opt for hybrid funds to get a taste of equities.
8. Debt-oriented hybrid funds typically invest in safe debt instruments, with very less equity.
9. If you do not know how much risk or volatility you can handle, an equity-oriented balanced fund will take you on a learning curve.
10. Those who are easily discouraged by market volatility, but want a flavour of equity in their portfolio, should consider a balanced fund.
11. While equity investments can yield spectacular returns, they can also lose money very fast, and for a first-time investor, a dramatic fall in the stock market may be tough to handle.
12. Those who can take on some risk can even opt for a pure diversified equity fund or an ETF.
13. After you get the hang of how the equity market is influencing the fund’s returns and are comfortable with it, you can try your hand at investing in stocks on your own.
14. However, make sure you put in only small sums that you are happy to experiment with.
15. Also, make sure you follow some basic investing rules:-
a) Invest only what you can afford to lose.
b) Avoid investing large amounts at one go.
c) Buy small quantities at regular intervals and try to get a feel of the market.
d) Avoid trying to time your entry.
e) Buy a stock in which you have strong conviction.
f) Ignore tips and hot trends.
g) Have realistic expectations of returns.
h) Be prepared to suffer losses initially.
I) Don’t succumb to emotions of fear and greed as stocks are inherently volatile.