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Investing for beginners – A run-through for your investment journey

Investing for beginners,

When you are starting out as a beginner in investing, defining your goals should be one of the key aspects. The financial goals you set for yourself should be laid out and compared with your expenses, risk appetite, and other budget constraints.

By doing this, you will understand if you are really up for the challenges that come with investing. But let me tell you what you miss out on if you don’t invest.

  • You will forever try to beat inflation. The prices will keep growing, and your income will come to a halt someday, and you wouldn’t have investments that act as your passive income.
  • If you miss out on Investing in stocks, real estate, and mutual funds, you lose the chance to gain high returns and maximize your investment.
  • You will never get to know the power of compounding money. You will be awestruck by the way your money compounds and grows.

So, if FOMO hasn’t caught up with you yet, it will surely catch up soon. Because investing for beginners is a must for anybody looking to secure their future given the economic conditions. What efficient steps can you take to begin investing?

Here are some of the most popular and relatively safe investment options for beginners:

  1. Public Provident Fund (PPF): PPF is a long-term investment option that offers a fixed rate of interest and is backed by the Government of India. The current interest rate on PPF is 7.1% per annum, and it has a lock-in period of 15 years.
  1. Fixed Deposits (FDs): Fixed deposits are low-risk investment options that offer a fixed rate of interest for a fixed period of time. Banks and post offices offer fixed deposits with various tenures ranging from 7 days to 10 years. The current interest rate on fixed deposits ranges from 3% to 6% per annum.
  1. National Pension System (NPS): NPS is a government-sponsored retirement savings scheme that offers tax benefits to investors. It has two investment options – active choice and auto choice – and investors can choose the one that suits their investment objectives and risk profile.
  1. Gold: Gold is considered a safe haven asset and is a popular investment option in India. Investors can invest in digital gold too, it comes with no making or storage costs. On the other hand, you can even opt for gold ETFs or sovereign gold bonds.

It’s important to do your own research. To understand the risks and returns associated with each investment option before making a decision.

However, here are the two healthy practices when it comes to investing for beginners suggested by most financial advisors and the banking industry itself.

  • Make sure you diversify your investments. Invest in a mix of different asset classes, such as stocks, bonds, and real estate, as well as different industries and geographies.
  • Start investing a small amount that you can afford to lose. This will give you a chance to learn about investing without risking too much of your money.

In conclusion, keep a track of the market. Learn from other investors, and make sure you are making a well-thought-out decision. And yes, it is always a good idea to start early. These are the ways in which you can attain financial freedom in today’s economic conditions.

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*The listed financial assets are subject to market risks. Please read all asset related information carefully or optionally contact us before investing.