Friday 22 May 2020

Five rules for long term investment

Hello everyone,

Many people connected to share market, wants to invest for a long term. Because they know very well  that healthy weath can be created only with a long term investment.

Long term investment is not as tough as we think, if we follow some rules with our long term investment.

Learn 5 best rule for long term investment.

Rule 1:- Bet upon the leaders & The strongest 

If you want to invest for a long term (10/20 years) then you should invest in market leaders/sector leaders. You shouldn't invest in newly listed company who can't even survive in market for 10 years. So you can only bet on leaders, like if you are investing in FMCG then hindustan Unilever, ITC could be good choice. If IT sector then TCS, Infosys could be good choice, if you bet on oil sector then reliance. In short you need to invest in market leaders& sector leaders.

Rule 2:- Diversify wisely

Let's suppose if you have selected good stocks like tcs, Infosys, hUL, TCS but you can't just invest in it. Here you will need professionals, who can suggest to diversify  your portfolio. Because growth is very important factor in investment.

Rule 3:- focus on Big picture,  not on Micro Events

You are investing for long term then you don't need to think for micro event, you only need to focus on big pictures.

Rule 4:- understand the risk factors and be mentally prepared for volatility on the way 

Stock market is like rollercoaster, if you invest 10lac, then you need to know first that before you earn 2lac from sharemarket you can even be in lose of 2lac if you can't be mentally prepared for this situation then share market is not for you. You can Put your money in Fixed Deposit where risk in zero.

Rule 5:- regular monitoring and exercise change when desirable

Regular monitoring is also important because future is unexpected, for example once Nokia was a market leader in mobile company  and now it is almost vanished from the market.

This 5 basic rules are very important for the long term investment, if you invest with following this rules then you are more likely to create healthy wealth from the share market.

"Let's create wealth together"

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