The new year of 2021 has ushered upon us. While many people have already started working on their resolutions, some might have even given up on them be it fitness resolutions like going to the gym, eating healthy, spending time with family etc. With these goals, you must not miss out this 2021 is setting clear financial resolution and making sure you stick to them till the end of many upcoming years to reap sweet rewards.
Your financial resolution could be investing in mutual funds, gold, in stocks through a stock advisory company or investment advisory services. Whatever your goal or approach may be making the right investment start, and being consistent is essential.
Now that you have made a financial resolution and are starting out with investment for which you want high returns as swiftly as possible without taking the risk of losing principal money. Which is why many beginner investors look for investment plans where they can make a quick buck by doubling up their money in months and years with zero to minimal risk.
For 2021 as an investor, we have to be prepared for any challenges it brings for us. In this article, we will be sharing an investment guide for 2021 for building your money and becoming rich through investing long term.
Build your assets as per your age and financial goals for 2021: An aggressive investment portfolio is not suitable when you are close to retirement as risks are high.
In the same manner, a portfolio heavy with bonds that have low liquidity is generally way too slow when investing in your 20`s, so try taking more risks and work out your investments in 2021. Make sure to build your assets and allocate as per your age and financial goals for the start of 2021.
Diversify your Investment portfolio with Debt and Equity Funds: Investing too much on one asset and under-investing as per past returns will not deliver good results. When investing, you must also consider the inflation that would build in future, and when it comes to mutual funds aggressive approach for long term never works.
That is where diversifying your investment helps. A diversified portfolio of equities, debt and global stocks can help you create wealth and manage risk! Work together with a financial investment advisor who will help assess your risk profile, and goals to determine the best asset allocation for your individual investment needs. Have a well-spread diversification across large, mid and small-cap debt and equity funds.
The ideal ratio of debt and equity funds should be closely balanced, with 60 of equity and 40% debt, they can vary depending on your risk-taking ability.
Go bold with investing in gold: In 2020 the gold prices declined after a strong rally, and declining interest rates and bond output have made liquid funds and small saving scheme less preferred. Gold prices rose by 26.73% in 2020. If you have not already invested in gold, start grand with investing in gold since the recent growth in prices has shown a good beginning, it is often preferred to buy gold when prices fall steadily.
Think about your investment for long term growth: In 2021 you need to make several specific investing decisions. As your choices should not depend on what you think is best over those 12 months, rather what moves you make in 2021 should work with your long-term strategy. As a general rule, you should stand to make money in your portfolio by buying quality assets and investments and holding them for years, so think long terms of decades and not months.
Be patient with your stocks: We must update ourselves constantly with the happenings of the stock market through various channels and stock market advisory. More often, misinformation and panic can lead to bad and emotional decisions. That is why patience is of utmost importance for an investor to take longer time frames when investing in stocks considering the current market scenario and keep your trading activity minimum in your account. Trading stocks often complicates your tax, and depending on the stock market broker you are using nationally in India, it can be quite costly. Invest more and let your long term investments do their magic.
We hope this article will help you in making sound investment decisions. For more control over your investment decision, trust the help of Ajmera x-change by investing within Ajmera x-change you gain a one-stop financial solution for all your investment needs.
Also Read: How much money do I need to save per month?