Having a mindset to start investing is the biggest step you can take. Rest will follow on with experience
Many people believe investing is a job that requires high intellectual people behind those big screens focusing on how the market is changing and then buy or sell according to that.
But, let me tell you don’t have to be one of those if you are planning to create wealth in a long term with patience.
The idea behind creating wealth is to have a discipline in terms of setting aside money each month to invest. Try doing this, then you have something to start with.
In order to this, you need to stop spending money on those things which you can create yourself such as buying costly drinks like coffee which you can prepare at your home at less than 100 rupees.
In today’s time, frankly, you just need to own mobile to start owning everything else. Mobile apps facilitate automatic payments each month so that you can be assured.
Investing comes in many forms. Don’t be overwhelmed by this fact. Instead, appreciate the fact that you have many options. With many options coming each year, it is easier than before for beginners to start in this journey.
With time, as you learn this art, you would make a lot of money! First of all, to do this you need to develop a habit of saving money. By saving money, you also end up creating an emergency fund.
If you have never saved money, try starting to save at least some considerable amount of money for eg,1000 rupees per month. This might seem stupid when starting on, but trust me when you start to live below your current lifestyle, it becomes harder and those who are able to be consistent later on, appreciate the struggles they took early on.
Start the journey with the amount mentioned above or else as per your goals. It would be very difficult initially to avoid those enjoyable weekends but I guess it has become easier to stay indoors in today’s time considering the crisis we all are in.
If you think that you can get more by taking less risk then that’s not going to happen. More money means more risk-taking. Things may change in the future when we would be having more flexible options but as of now, you have to take the risk especially if you fall in the category of young working professionals.
Risk-taking appetite should decrease as you age. A good amount of research needs to be done regarding where you stand as of now and your ability to invest in different types of financial products available.
Investment products can be divided into financial and non-financial products. Financial products can be split into market-linked products (mutual funds and stocks) and fixed income products (like fixed deposits, provident funds).
Non-financial are the conventional ones like investing in gold and real estate. Investing in stocks is a tough call because there is no guarantee of returns and here comes a saying that “Do not keep all your eggs in one basket”.
You should aim to diversify your portfolio so that even if one investment does not work, the others would be able to provide you returns.
Investment Business is flooded with resourceful persons. If you don’t have the time to research about businesses, shares, etc then try to opt for hiring people in this field or else try to opt for mutual funds where a responsible fund manager is given the task to invest all your money carefully by studying the performance of different funds over a considerable amount of time.
If you are in starting of your career, try to include equity as your investment strategy as you can expect a good return. Debt mutual funds can also be included but these are often selected by those who don’t have a high-risk appetite.
These are less risky and also stable returns are to be expected.
Coming to real estate, never consider your house as an investment as it is a place you reside in and plan to be in after you retire.
There are case studies of people who invest solely in real estate and are considering it as a retirement plan by relying upon the rent the properties generate. Instead of going the way of stocks, they try to go with the conventional way of investing in real estate.
The real estate market is an ever-booming industry but it takes a lot of time in case you are starting from scratch. When you opt for real estate, the money required is a lot. This is the opposite in the case of mutual funds where you have the freedom to own as many funds as possible whereas in real estate owning one will be a big deal. This is now like putting all your eggs in one basket.
Real estate is a tried and tested investment technique. However, there are many factors such as location which determine how far the appreciation will happen after say 5 or 10 years.
Rental properties are also a good way to get a stable return. The main thing required to succeed in the real estate industry is the ability to research different locations and the most important thing is to get the right tenants. Once you have done all these, then the sky is the limit in terms of the amount of money you can earn in this industry.
The best part of being an owner of a property is that when the times are bad, you can rent it out. And when the time comes, when the property has appreciated, you can sell it for a good profit. How far the property appreciates depends largely on the market. Be flexible in terms of investing in other locations and not only being limited to where you reside.
If you own a rental property then it allows you to have a diversification in your portfolio, which again will help you to have an extra layer of security which is a very good side of diversification. By doing diversification, you will have an advantage of taking more profit when one of the markets is in favour of you irrespective of the other segment being a non-performer.
As you might understand by now that owning a rental property can be advantageous both financially and personally. But, as said earlier any real estate investment is associated with risks. And rental property is not to be considered an exception.
However, with good research, you can reduce the risks to a good extent like renting your properties to good tenants after doing a background check, as an example.
With time, you can also think of expanding your portfolio by gaining knowledge from trusted sources, meeting more people in the industry so that you are aware of all the changes happening as real estate is an industry that undergoes changes in policies so it becomes more important.
Here comes the bonus tip, have you ever thought that you could have opportunity investments in properties meant for the public like amusement parks, places where recreational activities happen.
Well, then it’s time to think big because it’s now possible as landmark entertainment city in open to numerous investment opportunities in Kerala. It’s one of the best investment opportunities with really good benefits.
They offer attractive investment portfolios and lucrative partnership offerings for institutional and also private investors. They are one of the top companies you should look for investment opportunities in Kozhikode, in Kerala that has taken a pledge to satisfy the requirements of investors in the form of tourism, entertainment, and fun.
If you are one of those who has a vision in investing and is looking for best investment options in Kozhikode, let us know in the comment box.