Friday, May 7

Five easy steps to make yourself investment ready

Steps to a successful investment journey

One of the biggest drawbacks today is the lack of awareness. We often follow what is blindly told to us, either by our parents, friends or financial advisor. Every step that one takes while making decisions, especially financial, must be well thought of.

Make yourself investment-ready by following these 5 steps:

1. Know about all the options available

Do you ever go shopping without evaluating the best sale? It’s not fair to do so. Similarly, making a half-aware decision is worse than making none because you would never know what you are missing out on.

Out of the plethora of investment options available, some might suit your goal and some might not, but to evaluate that, you must know all that are present. And for that, you must do your research.

2. Evaluate the zone of risk

Before you invest your money into financial instruments, you must understand your risk appetite. Once evaluated, you must match your risk capacity to the risk exposure of the investment and only then invest.

3. Pick out your mix of investment options

You must have heard several investment experts say ‘don’t put all eggs in one basket’. It is for this reason that you must know what all kinds of investments should go in your basket.

Your mix of investments must be decided basis the risk that each carry, the maturity and other such factors. To know what kind of investments should make up your portfolio, you could take the advice of professional financial advisors.

4. Be aware of the conditions involved

No one likes surprises when it comes to their money. If, after investing a certain amount, a significant portion of it goes in paying for the additional expenses that you were not aware of, you would feel cheated.

Hence, do your research about a particular investment well – its features, expenses, conditions etc. Such intricate details about investments are often widely available on various websites that carry information, such as the fund houses, fraternity websites etc.

5. Know when to hold, exit and reallocate

An investment forgotten is as good as an investment never made.

To make sure your money isn’t going down the drain, you must keep revisiting the performance of your investment and ensure that it’s on track with your objective. If not, you could consider rebalancing your portfolio.

Knowledge is an investor’s strongest investment. Let’s make sure we take no half-informed decisions, let’s research thoroughly and not just sign anywhere!


An Investor Education & Awareness Initiative

Disclaimer – This document is for general information only and does not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this information. This document provides general information on performance; financial planning and/or comparisons made are only for illustration purposes. The data/information used/disclosed in this document is only for information purposes and not guaranteeing / indicating any returns. Investments in MFs and secondary markets inherently involve risks and recipient should consult their legal, tax and financial advisors before investing. Recipient should also understand that any reference to the indices/ sectors/ securities/ schemes etc. in the document is only for illustration purpose and should not be considered as recommendation(s) from the author or L&T Investment Management Limited, the asset management company of L&T Mutual Fund or any of its associates. Recipient of this information should understand that statements made herein regarding future prospects may not be realized or achieved. The distribution of this document in certain jurisdictions may be restricted or totally prohibited and accordingly, persons who come into possession of this document are required to inform themselves about, and to observe, any such restrictions.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

Disclaimer: Content Produced by L&T Mutual Fund

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