Today, Equity is the best Asset Class which can give you high returns & beat inflation as well! People are conscious while dealing in Stocks & they often make decisions which lower their ability to build a good Corpus.
Here are a few Words of Wisdom which can prove as a Valuable Guide in your Investments.
- Believe in the Power of Compounding
In Equity Investing, Compounding does it all to reach to the top. Compounding earn interest on interest thereby giving you higher returns. The more time you give your investments, the more you are able to accelerate the income potential of your original investment.
- Always be Disciplined
Discipline is one of the major traits of an Investor. You should be investing as well as reviewing your Portfolio regularly. You need to be clear on what kind of stocks to buy & make strategies accordingly. Times appear, wherein, you have to invest depending upon the Market Trends but that is the time when you have to act disciplined.
- Don’t indulge in Short Term Gains
In case, you want to become a Long Term Investor & accumulate Wealth over the years then get rid of the distractions which lead you towards short term gains. Gaining a little amount every now & then won’t give you Financial Stability but a Corpus that is created with a view of Long Term can!
- Understand Risk
‘Risk & Returns are the two sides of the same coin’….is what we have been hearing so far! But it is not necessary. It is not only about high risk stocks…it is about your Risk bearing ability. You need to know your Risk Profile…if it is Conservative, Moderate or Aggressive & then build your Portfolio accordingly.
- Hold Big Stocks for a long time
The biggest Mantra of Investing is to buy big stocks at reasonable prices & hold them for a really long time. The time will play its part but it is also important for you to keep a check on them at regular intervals.