Investing is like learning to cook. No matter how many recipe books you read or watch your mother while cooking, the perfect taste, aroma and texture comes only with practice. Only when you cook yourself, again and again, can you master the art of cooking. Some tips come handy along the way. So, if you have started your investment journey or are gearing to, here are some practical investment tips for you.
Gain thorough knowledge
Before you invest anywhere, always remember to have a clear understanding of what you are getting in to. Starting from the basics of investing, learn everything you can about investments. Even if you are a seasoned investor, it is important that you keep your knowledge updated about the recent happenings. It will help you make better and faster decisions.
Take the matter in own hands
Do not wait for the men in the house to do the financial planning. If you are starting anew, have fruitful discussions with your husband and father. Learn some lessons from them which they learnt the hard way. Consult them along the process, but get involved in the investment decisions. Use your researched information in the discussions, ask questions, share your views on how certain investments are beneficial to meet your goals. Control and secure your own financial future rather than being dependent on others.
Plan and invest for long term
Think long-term to get good returns. Mutual funds are great long-term investment. You can start SIP with as less as Rs. 1000 per month and stay invested for as long as you want. Historically, mutual funds are known to have given better returns compared to the traditional investments like fixed deposit. When you invest for long term, you earn interest on interest, which is called as compounding.
Use work resources
The Finance and Accounts department in your office can be a great resource. They can suggest you some ways to save tax. More liquid cash means more money to invest. Besides, most companies organize regular training sessions on financial tips and planning. It may not sound fun but can prove beneficial. Do not ignore it because you have personal resources who can guide you. Attend these workshops to get some first-hand and practical knowledge from professionals.
As women, you are the torchbearers of risk mitigation. When it comes to work or personal life, you are ready with a plan B. You may not be willing to take much risk, but if you do, you sure know how can to minimize the risk at hand. Similarly, diversification in investments helps you balance the risk. Invest in difference vehicles with varying risks.
Invest in companies with women leaders
Companies with women leader/s are known to perform better as per research. Invest your trust and money in such companies, keep a track of the company’s strategic decisions and maximize your returns.
Protect your family needs
Make sure your investments are worthy enough to protect your and your family’s lifestyle. Being risk-averse is not wrong if your primary objective is to build an emergency fund. Simultaneously, you should also ensure that your money is not exposed to the risk of inflation. Also, if protection and emergency back-up is your goal, do park some of your money in insurance. You get peace of mind knowing that your loved ones are secured.
Do not hesitate to get some professional help every now and then. And when you do, trust the tips given by your advisor. Women may be not as risk-taking as men are, but the meticulous planning and efforts to save fees and costs, get you good results.