- Identify your goals, it is the first thing to start with, in any investment.
- Start your investments early, but before that know your risk profile.
- Choose the investment instrument based on your goals and your risk profile.
- Invest wisely, see to the real returns which mean returns minus prevailing inflation rate. So that your investments can fulfill your goals.
- Investing is invest for long term. Since most long term investments are of no risk and will give good returns.
- For example, Mr. X is investing Rs.10, 000 P.M for 10 years from now at an interest rate of 15% and after 10 years he would get an amount of around 28 lakh for his 12 lakh investment.
- And Mr. Y started 5 years late and invested double the amount Mr. X has invested but ends up only with 18 lakh rupees.
- This is called the power of compounding. So, make best use of this power and obtain good returns with less risk
- Follow the three golden rules of investing,
Start early, invest regularly and invest wisely.