Ads 468x60px

Saturday, 5 November 2011

How to start Investment




Many first time investors think that they should invest all of their savings. This is not a good process. You must first determine how much you can actually afford to invest and what your financial goals are.

       It is important to keep three to six months of living expenses in a readily accessible saving account.Don't invest that money. That money is called an 'Emergency Fund' in Financial terms.You need to start learning about business, investment,finance,economics and stock market.If you are a keen investor you need to able to decipher political rhetoric macro economic trends.
       Every investor might be a loser occasionally and it is essential. Understanding asset allocation is vital. There are fundamental differences between the way investors behave. New investors ask for 'tips' and want to know what should one buy? Professionals do not want tips. They have dozens of good ideas of their own. They won't be sharing these ideas with you and they will not be expecting you to share yours. Instead, they ask about how you allocate money. Which sectors and markets do you like and why? The difference between these approaches is like night and day. Now you can easily differentiate the professional and a new investor. Don't follow the tips simply.

1 comment:

వెంకట్. బి said...

living expenses in a readily accessible saving account.Don't invest that money. That money is called an 'Emergency Fund'

what so fantastic wording..superb Anila. I became your fan.
keep it up

Post a Comment