Every year, we celebrate new year twice. Why, you ask? The first one is calendar new year, and the next one is financial new year. It’s again that time of the year when you’re all sorting out your investments for the year that went. But what about the year that is to come?
Fret not, we are here to help you with a list of do’s and dont’s for the coming F.Y., so that you don’t have no financial regrets.
1. First things first, start investing early in the year. It helps you understand the performance of the portfolio. Also, last minute investments are no good.
2. Diversify your funds. Do not invest all your money in one type of investment.
Source
3. If you plan to invest a large amount, keep at least 5-10% for precious metals, preferably gold. This will help balance your portfolio during market fluctuations.
4. Always plan in the long-term if you are looking at earning profits. Short-term investments seldom give high returns.
5. Plan before actually investing. Research a little, invest in bits and pieces, try small investments, and judge, which one works best for you.
Source
6. Always avoid investing hurriedly only to save taxes at the last minute. Invest to make your money secure, invest to earn profits, never invest just for the sake of investing.
7. Never invest without setting a budget first. If you do not have a planned budget, you might end up over or under investing.
8. It is only wise to have a part of your money invested in a low-risk asset like gold so that in case the market crashes, you have something to fall back to.
Source
9. Keep a track of all your investments yearlong. Their performance should be something you always have in your mind before investing more or trading again. Anytime you notice a product performing badly, you must have a ready plan to correct it.
10. Pay attention to the tenure of your holdings. The biggest mistake new investors commit is invest in very long-term assets and up getting their money stuck for years without much profit.
Source
A smart solution for this problem can be Gold SIP by Augmont, which has no lock-in period. Install the app and you can easily invest in their flexi SIP.