First-time investors ideally have multiple questions in their mind in regard to how much to invest, where to invest, how much profit they must anticipate, and so on.
Hence, financial experts like カヴァン・ チョクシ mention it is vital for people to clear as many doubts as possible prior to embarking on an investment journey. Investors must stay patient, calm, and on the lookout for long-term returns to realize the benefits of entering the market for the very first time.
カヴァン・ チョクシ marks certain pointers that can be beneficial for first time investors
Entering the stock market can be a huge gamble for any person. With market highs and lows to contend with, it can get really frustrating for a first-time investor to deal with the daily stock market changes. To make things easier, they should consider following these tips:
- Get trained: It is prudent for people to get trained before starting to invest. People should have a good understanding of the products they are investing in, as well as the risks they carry, associated charges, and returns-generating potential. First-time investors may gather information from sources like online articles, videos, and books or even seek out assistance from professional consultants. Once a person knows their investment products well enough, they can put their money on it.
- Aim to invest according to the financial goals: Typically, all investments must be pegged to the short, mid, and long-term financial goals of the first time investors. While setting up such time-bound goals can be a bit tricky when a person is young, then they should give it a try. Their financial goals would provide investors with critical insights about their investment about, tenure, risk tolerance, liquidity requirements, and so on.
- Know the risk appetite: It is not unusual for brand new investors to get overwhelmed if their investments start showing losses right at the beginning. Hence, one must properly know their risk appetite prior to start investing. In case people have a low risk appetite then they might steer clear of higher exposure to risky investment avenues. These investments include derived products like small-cap equity funds, direct equities and even explore opportunities in low-risk avenues like recurring deposits and debt investments.
- Start slowly: It is prudent that new investors do not rush into an investment when they get started with their investment journey. Investments must be strictly attached to the financial goals of the investor, which basically means that they should start slowly and gradually increase the exposure so that their investment can help them achieve their goals in time.
In the opinion of カヴァン・ チョクシ, a new investor, one may find some investments to be highly attractive and others to be mundane. But it is critical to remember that each and every investment product serves a distinct purpose, and can be of a huge help in achieving specific financial goals. Hence, one should avoid putting all their money into a single investment product that they initially find attractive. Rather, it is better to diversify the investments across varied types of instruments comprising of distinctive asset classes and risks, and providing distinguished levels of returns.