With the advent of digitization the way investments take place has completely changed. Everything from knowing all the details to investing is done online.
College is over. Got a job .. Settling into a career right now means people around us are giving all kinds of advice. That is why millennials are confused as to what kind of financial advice to follow. But they do not need to be afraid. Aditya Birla Sun Life AMC A. Balasubramanian, Head, Industry, advises them. He has 26 years of experience in the market. Here are some tips to help you get started:
Don’t forget the basics. With the
advent of digitization, the way investments take place has completely changed. Everything from knowing all the details to investing is done online. New ways to invest for millennials are available. Many fintech companies are also in the market right now. Of these, Grow and Paytm are famous. Such companies have turned investments into work in our hands. However, Balasubramanian explains that no matter what these are, there are some basics to follow.
Basic investment principles never change. That’s why you need to identify your actual needs before making an investment. Short-term and long-term investments should be made accordingly. Financial goals can be easily achieved if such investments are made in the long run.
Checking trends .. do it now …
Most people keep an eye on market trends. But any trend will not last long. That is why it is not right to go along with the trend and buy after the value is increasing .. Buying any stocks should only think about the long term benefits. While some sectors are recovering after the corona, others are squatting. Need to do some experimentation in the market, try new new trends. But it is also not right to depend too much on it. That is why it is better to invest in the market only after you have a good investment base.
Be realistic …
How are we investing .. Assuming that we will earn crores of rupees in two years .. Investing as we like for it will increase the chances of loss if profit is put aside. Whatever we invest in, we need to make sure that the return we expect is a bit realistic. Stocks should be taken at only 25 per cent less than their basic trading value when purchased. It is advisable to sell mutual funds for 10 times the net asset value. But it can also sell for 7 times as much if needed. No company trades more than their book value. Recognize this and do not buy if the value of the company is too low. Also it is advisable to book and sell good profits at the time of sale.