How should a new Investor Enter Market?

-

Many people tend to come to Market for investments mainly because they might have heard others speaking about the profit they got after investing in the market.These stories are true but as a coin has both sides investing in the market also has got both sides.What i mean is that there are pros and cons of investing in mutual funds.


The investment pattern of many new investors are such that they tend to go behind the past returns a fund gives and invests in those funds which is giving the highest return.They are hoping that the fund will perform in a similar manner for the coming years.This can be dangerous without understanding the fundamentals.

As a new investor who wants to invest in the market they should first study about the different kinds of funds available in the market and what they offer.For example there are different classes of funds under the equity portfolio like Large Cap,Multi cap,Madcap,Small cap etc.One should choose funds under these categories according to the goal in mind as to when they want to take out the money.

To keep things simple a person entering into market his best option would be to start with a Hybrid Fund which is a mix of Equity and Debt.I say this because a new investor should not be disappointed with the volatility in the market which in these times of pandemic is so true.The thing is one should experience the market and its volatility for some time until one becomes comfortable with it.In the case of Hybrid Fund since there is a debt portion in the portfolio the fluctuations in the NAV(Net Asset Value) of the fund will be less compared to the index.Then slowly he can move to Multi cap and so on.

The best way to understand market is to experience it.Also one more thing i want to bring in is that most of the people think invest and forget strategy will work in the equity scenario wherein they will invest some money at some point of time and they forget about it and when they look back after 10 years or so they find that returns were not as expected.The thing with equity is that it needs active management it means that once should review the portfolio at least once a year and re-balance if necessary. This is yet another vast topic and hoping to cover it in another blog.

Please leave your feedback in the comments section.

Happy Investing 😊

Comments

Post a Comment

Popular posts from this blog

Creating RESTful Minimal WebAPI in .Net 6 in an Easy Manner! | FastEndpoints

-
Image
  We might have developed Web APIs using MVC Controllers where we used to give Route Path Attributes to the Controller and  to identify individual methods we used to provide Actions in the Route. With the Controller approach we need to write boiler plate code in separate files which deals with the Configuration of the Web Service. Those who have worked in Node js would be aware of how easy it is to create a Web API and expose different Endpoints without the need of so much boiler plate code. Here we are going to discuss of similar approach for creating a Web API in .Net6 using FastEndpoints. Under the hood it uses Minimal API concept which tries to reduce the dependencies required to achieve a particular task. This approach is more suitable in the case of Microservice Architecture where we want to keep the dependencies to minimum. Must Read : Fluent API and Data Annotations What are FastEndpoints? FastEndpoints is a Framework compatible with .Net 6 which allows to build a RESTful Web A
Read more

Mastering Concurrency with Latches and Barriers in C++20: A Practical Guide for Students

-
Image
Introduction Picture yourself as a student tasked with organizing a surprise party for a friend. You have a team of friends helping you, each with a specific role: one decorating, another cooking, and yet another taking care of entertainment. As you plan and coordinate, you quickly realize the importance of timing and synchronization. Just as in party planning, in the world of programming and computing, we often have multiple tasks running concurrently, similar to your friends handling different aspects of the party all at once. However, ensuring that these concurrent tasks harmonize can be a significant challenge. If decorations go up before the food is ready or the entertainment starts before guests arrive, it could lead to chaos. This is where the world of programming comes in, and in this blog, we'll explore powerful tools called "latches" and "barriers" to manage these concurrent scenarios efficiently. Learning about latches and barriers isn't just abou
Read more

Graph Visualization using MSAGL with Examples

-
Image
 Graph visualization is a great way to get a better understanding of complex relationships and structures in data. Whether you work as a software developer, a data scientist, or just want to explore networks, seeing graphs at runtime can be really helpful. In this blog, we'll look at how to make graphs at runtime with MSAGL. We'll cover the basics of creating, customizing, and visualizing graphs with MSAGL, as well as practical examples of how it can be used to create a social network and workflow. What is MSAGL? MSAGL, developed by Microsoft Research, is an open-source library designed for graph and diagram visualization. It offers a wide range of features and layout algorithms to create clear and aesthetically pleasing representations of complex graph structures. Installing MSAGL: To begin, you'll need to install the MSAGL library. You can download the latest version from the official MSAGL GitHub repository or conveniently install it using the NuGet package manager in Vi
Read more