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Investing and the Art of Stillness

Investing is a very tough word for people who have never read it up before, or belong to finance sectors or tried doing it before. And if one hasn’t invested, trading is presumably just as scary for them! However, understanding the world of investments and getting started with your own portfolio is not as difficult or scary as it looks. In fact, with the right advisors or asset management companies, you can get all the information you need about trading and investing, all assistance for investing and even start tracking your portfolio wisely, in no time. A lot of people enter the markets with a simple goal of wanting to make more money but that s usually not enough to get started; planning your investment journey is also just as important to be able to achieve the goal you have dreamt of.

With the right wealth advisors you can definitely get started on your Investment Journey but if there is one thing you have to be cautious about then it is the art of stillness. While trading is all about quick transactions and intraday stocks, it is also about carefully choosing your long-term bets and knowing how to get in on the scrip early on.

1.    Looking for opportunity

First and foremost comes the due diligence stage where you pan out your financial goals and then start looking for different investment products to narrow down. Asset Management Companies or even professional wealth advisors can help you assess your goals and the type of risk you are willing to take and then pick out the ideal investment opportunities for you.

2.    Sticking with the tide

Investors often make the mistake of trying to make more money too soon or get scared the minute market takes a dip down south. However, it is very important to choose stocks, ETFs or Mutual Funds that invest in companies with strong fundamentals and then to stick to your guns. Wealth advisors will often advice you to stick with the tide instead of taking hasty decisions and pulling out in an untimely or unprecedented manner.

3.    Long-term prospect

Every investment or trade has either a short term outlook or a medium to long term prospect, and identifying this is very important for an investor. If you want to make more money in a short term prospect then trading in stocks or high-frequency trading is a good bet but if you are thinking about building a diversified investment portfolio for the long run then it is advisable to go with trusted names, and all the technically and fundamentally strong companies.

4.    Compounding effect

By compounding effect all investors really have to understand is that longer they stay invested with SIPs or lump sum in MFs for example, more they can enjoy the compounding interest on their capital. This way your investment doesn’t only grow, it even multiplies and adds up manifolds. Asset Management Companies can direct you towards the right kind of financial instruments which can offer compounding effect for your investment in the long run, and eventually help you make more money.

Time in Market vs. Timing the Market

Timing the market or time in the market, if that is the question then timing the market might help in you achieve your near-term goals but over a long period of time, time in the market has a better compounding effect, and definitely helps create wealth. A diversified investment portfolio that spends enough time in the market, will definitely help you create a nest egg for the future will fulfilling your other financial goals. At the end of the day, it is your risk appetite and your goals that will determine what is it that you need from the market, timing it or considerable time in it.

To conclude, investing in equities, which is simple asset class, can be quite tricky but if you do your research right and take help of trusted wealth advisors then it would be a cakewalk and a professional one at that! Every investor needs clear understanding of equities, patience and skill-set to be able to analyse it right and once you start doing so, creating a Diversified Investment Portfolio with stillness in your investment pattern won’t be too far.