The stock market has always attracted investors due to high returns it generates. However, investing in the stock market requires a combination of ingredients like oodles of patience, market understanding and research and discipline in right proportion to reap multi-fold rewards of equity investment. Thus, knowing basics of investment proves to be crucial in shaping your investments to deliver good returns.
There is no guaranteed formula to earn high returns from investments. However, disciplined investment increases your chances of earning good returns.
Here are few ways by which an investor can drive wealth with disciplined investments-
- Take informed decision
Before investing in any investment vehicle, thorough research has to be conducted. Equity investment especially needs a lot of research and investing randomly into stocks by just going by the name and fame of the company might not deliver returns you expect. Also, equity investment sans research is surely a road to a loss. It is important to have good knowledge about the product you are investing in and perform quantitative analysis before investing in a stock. Equity investment gambling platform that works merely on luck. It is not a gambling platform that works merely on luck. Equity investments built on two strong pillars of research and data are the ones that will pay multi-fold returns in the long run.
- Invest in companies whose products you understand
When you are investing in a stock, you are buying a part of the business. Thus, it becomes indispensable for you to understand the business well before investing in the stock.
- Do not follow the herd
Following herd mentality and devising investment strategy based on other’s thoughts of investing is surely not going to make you earn good returns. Every person is unique and so are the needs and requirements. A person may invest in certain stocks that he/she believe in. But, that does not mean even you should invest in the same stock. Blindly following equity investment advice may backfire you in the long run and rip you off capital gains.
- In investment, do not let your heart take decisions.
Investment kingdom ruled by sentiments does not thrive for a long period of time. It can be easily defeated by market warriors. Hence, it would be wise to take investment decisions from “brain” and not from the heart. Data is the king when it comes to researched investments. data, facts, and numbers never lie and hence, investment in equities should happen by researching company data and looking into other fundamental aspects of a company like management, product life etc.
- Diversification of portfolio
Diversification of portfolio helps in reducing risk associated with market volatility. Thus, diversification minimizes risk while giving you optimum returns on investments.
- Evaluation of investments
Evaluating your investments on regular basis will give you a precise idea about performance. It also helps the investor to assess good/bad performing stocks, their recovery period and give an opportunity to rebuild not-so-well-performing investment portfolio. An investment that is aligned with needs and requirements will help you to achieve your financial aspirations.
- Keep realistic expectations
Equity investment, though it delivers the highest returns, is a not a platform for greedy investors. It is not a magical formula that will make you a millionaire in short period of time. Rome is not built in a day; so is wealth. It takes patience, discipline, and zero sentiments to earn exceptional high returns out of your investment.
When an investor knows implements all the basics of investing in a proper and disciplined manner, good returns are bound to be generated.
How can Purnartha help you in your journey of wealth creation?
Purnartha Equity Investment Advisors have been generating wealth for our elite investors for more than a decade. Our research-backed equity investment recommendations spearhead our wealth creation ability and help several investors achieve their financial goals. We have successfully and consistently achieved several victorious glories and have beaten NIFTY benchmark. Purnartha has delivered 48.84% CAGR from April 2009 to March 2018.
If you are a looking for equity investment advisory services, Purnartha is the best one-stop solution. We have clientele database of more than 2500+ satisfies investors from India and overseas. Do visit our page www.purnartha.com and get in touch with us! We will be more than happy to serve you!