Top Investment Ideas For Long-Term Wealth Creation – Axis Direct
Nov 16, 2018 | Source: www.moneycontrol.com
5 Intelligent Investment Ideas For Wealth Creation In Long Term
Most investors invest with the thought of making as much gains as possible. However, having unrealistic expectations for your investments can lead to disappointment, especially when the instrument you are investing provides market-linked returns. Here are five things to keep in mind while investing to maximise your returns and fulfil your goals:
1.Define your goals and invest accordingly | Adopting a ‘why (goals)-how (process)-what (product)’ approach would be ideal. To develop this mindset, focus on goals and understand your risk profile before selecting products.
2.Understand the risk factors | The most common mistake people make is that they jump into an investment product blindly. Understanding risks involved is a very important aspect of investment planning. Plan your investments based on risks involved with clear objectives and the rewards will come.
3.Have a long-term outlook | Timing investment is logically impossible because the best entry and exit opportunities are known only in hindsight. No one can predict stock market movements with certainty. Therefore, it is important to allow your investments to compound over a long term.
4.Know what not to focus on | A decision on where and when to invest can be a complex decision for all of us. It’s best to eliminate some of the lesser relevant variables in this process. Always keep the larger picture/objective and eliminate the distraction in your decision-making process.
5.Seek advice from professionals | Finding out what is ‘the best’ stock to invest in can be tricky as it requires an understanding of the product’s basic nature and matching suitability with your needs and circumstances. Your best bet is to consult a trustworthy financial planner.