In this time and age, saving and investing has become just as important as earning. Be it youngsters who have just begun earning, the responsible adults who have numerous expenses or the senior citizens who are soon to retire and live a care-free life, investing has been advantageous for each and every one of them. You don’t need to dream small if you begin investing as early as possible and work towards a diversified investment portfolio.
What is a diversified investment portfolio?
Investors, be it novice or seasoned, often browse for different ways on how to make money online and sometimes to simply know the best ways to make more money. Well, one of the best ways is to have a diversified investment portfolio, which means:
- Diversifying your investment avenues
Simply put, more the avenues of investing, better are your chances of averaging and earning higher returns, in volatile markets or even otherwise.
- Not putting all your eggs in one basket
As an investor it is ideal to have diversified investment portfolio because that would mean that you have different secondary sources even in your investments. Come volatile markets, your portfolio would never be complete hurt because you have little bit in every avenue.
- Averaging your risk ratio
By diversifying portfolio, you can ensure that you are averaging the risk your portfolio will face i.e. equity mutual funds for example have higher risk meter as compared to debt mutual funds.
Now that you know why it is vital for you to diversify your portfolio, we can move onto the second most important question that investors’ have- how to make money online? One of the best ways to do that is by starting your SIP in Mutual Funds or Equity Markets and then by increasing your SIP amount! The higher your SIP amount, more are your chances to earn higher returns and make more money.
Here are the top 3 reasons to start and increase your SIP in 2019:
1. The Compounding Effect
SIP in Mutual Funds, be it monthly, quarterly or yearly, is quite beneficial to investors of all ages and expertise. All investors enjoy the compounding effect when it comes to SIP in mutual funds which means that it wouldn’t matter much if the market is up or down when you start or increase your SIP, because all your SIPs would be adding up to average in your portfolio and your investment will thus be more protected from volatility.
2. Timing the market right
When it comes to investing, timing the market is really important. Current volatility and market ups and downs of 2019 are one of the reasons that make this year an ideal time to start and increase your SIP.
You can increase your SIP to enter the market at an ideal time and enjoy your diversified investment portfolio in the longer-run.
Learning how to make money online is actually quite simple. Increase your SIP by timing the market right and enjoy your returns for all your short term or even log-term financial goals.
3. Building a nest-egg
Experts often say ‘Invest now for a better tomorrow’ and 2019 has some great investment forecasts for novice and expert investors! If you are an existing investor with SIP in different mutual funds and equity market then you can attempt to make more money by increasing your SIP. This investment nest-egg will help you in your golden years and make sure that you remain financially independent and have a steady income from your investments, even after you retire.
Investors often ask how to make money online and the best way is to check your investment portfolio, keep it diversified and make the most of timing the market right. If you haven’t started your SIP in mutual funds or equity markets, then start right away because when it comes to investments, the right time to start was yesterday and the second best is today!
Investment is what helps you not only survive and sustain in your future but also help you achieve your dreams now. If you are one of those people who always feels like they are dreaming too big and need to know how to make more money, then investing right and investing on time is your best bet!