Novice At Investing? 5 Tips On How To Be An Expert

Jun 15, 2018 | 5 months ago | Read Time: 2 minutes | By iKnowledge Team

As a busy professional, you may not always find the time for investing. With a family to tend to and chores to complete, your schedule may probably be as packed as ever. No matter how hard you try to investment planning often take a backseat.    However, if you manage to squeeze in some   time you could understand investing on a deeper level and benefit from it too. Here are 5 tips to take your investing skills to the next level:

1. Learn about individual companies

You may not really need a peek into the balance sheets of every company. but you can follow up on the companies’ goals and gauge their performances. You may also read up on news stories about these companies and gauge whether what you are trying to accomplish matches the company’s goals. Even though this may take considerable time, the rewards for doing so are greater as you can start investing in individual stocks.

2. Avoid trends

There’s always an investing trend that the herd follows. You will hear of it in your office, sports club or even at a party. However, remember that none of this is expert opinion.  It is more likely that the trend has peaked by the time you decide to invest. So, try to avoid investment trends unless you are absolutely sure you’ll make money from it.

3. Invest in real estate

Real estate is the only investment you’ll ever make that is guarded against inflation. Scout for a good location, where people are more likely to move in, and invest in properties in the area. You can also invest in realty that may develop at a faster pace. The key is to identify locations that are more likely to see good growth in the next few years.

4. Diversify your assets

When you stick to only one or a few kinds of stock, you will inevitably put yourself at risk. This is because if the assets perform badly, you stand to lose everything. However, when you invest in various types of assets like index or bond funds, you can keep your entire portfolio from tanking in the markets. For instance, you can invest in ULIPs to further diversify your current portfolio. In addition to being a tax-free investment option, a ULIP also offers you an insurance cover.

5. Learn macro trends

Global macro trends tend to have an effect on economies, people, the environment, and society. These trends are significant as they may affect the future of families, governments, companies, and investors like you. Knowing basic macros trends can also help you understand your investments better and why stocks behave the way they do.

Conclusion

Like every other skill, investing also takes time to learn. Once you get the hang of it, you might well be on your way to becoming an expert.

 For information on Aegon Life’s insurance offerings, visit https://www.aegonlife.com/insurance-plans

Advt. no.: IA/May 2018/4036


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