05/11/2020
Five easy steps to make yourself investment ready.
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.
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.
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.
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.