A beginner's Guide to investment

Investment Plans 11 January 2021 4:40:PM

With so many options available today, investing for beginners can be overwhelming. It is, therefore, important to have a deep understanding of the investment basics. Once you are aware of different investment options you can easily make the right decision according to your financial goals. 

Guide to Investing:-

Individuals who start earning through a job or business often look to secure their future. Such goals can be achieved by starting early and making meaningful investments. If you are an investor who is just beginning, you must possess enough knowledge about the risk and return involved in various investment options.

While an informed decision will be rewarding, mistakes can lead to huge losses. Therefore, it is always better to partner with professionals who can advise and guide you to make the best investments. 

How to Start Investing?

In simple words, investing is nothing but setting aside money and making it earn more money for you. This will lead to rewards and returns in the future. Here are some investment options you can begin with and maximize your returns and minimize costs.

Equity (stocks):- 

In the stock market, equity can be defined as the share in a company’s ownership. When you invest in the equities of a company, you can become a partial owner. Thus, you become eligible to get a certain amount of money if that company’s debts are paid off or the assets get liquidated. 

It is one of the popular options as it gives you high-returns. Of course with any investment there are risks and you must vary them before deciding. GEPL Capital offers SIP in stocks that start with Rs 4000 a month. Also, you can open a Demat and trading account to invest in stocks. For more details, contact us at any time.

Global Investing

Global investing is another option where you can hold securities that are issued by the government or business companies in other countries than the one where you reside. When you invest globally, a diversified portfolio reduces portfolio risks and promises good returns. 

You can buy US stocks by opening a Global account and begin global investing with GEPL Capital.

Mutual Funds

A mutual fund can be understood as money gathered from different investors which are then invested in securities like stocks and bonds by a company. As a mutual fund investor, you can buy shares in mutual funds that represent part ownership in the fund. Therefore, the income it generates is profitable for you.

A company’s size matters for the mutual fund as it opens up different opportunities and risks. Based on the size factor, different schemes provide three types of listed companies. 

Large-Cap – These are funds that invest a big chunk of the corpus in companies with large market capitalization. These are well-established companies that deliver steady returns and the risk factors are less compared to other listed companies. 

Mid-Cap – These lie between large-cap and small-cap as far as size is concerned. One advantage of mid-cap companies is that they perform better than large-cap companies during a bull-phase. Those with high-risk tolerance can go for mid-cap but know that it can provide higher capital appreciation. 

Small-Cap – These are new companies that seek to grow and expand as fast as possible. Therefore, the potential for growth is high. Those who have high-risk capacity can choose small-cap.

Flexi Cap – It is a new category that allows you to diversify your investment portfolio across different companies with market capitalization. This reduces risk and lowers volatility. 

Commodity and Currency

You may wonder what is commodity trading. Well, commodities that can be traded include gold, silver, metals, energy, and agriculture. These are great investment option as they can be used to diversify a portfolio and reduce risk. It can be used as a hedge in times of high inflation or currency devaluation. 

What is currency trading? Currency trading is the buying and selling of international currencies. You can make profits or capital gains from the variations that occur in the currency exchange rate. 

Insurance

With insurance plus investment plans, you can plan your protection where a premium is dedicated to life cover and the rest is invested. Thus, you can invest in yourself, your life first, and make money as well.

Medical insurance

Medical insurance is always good to plan your finances for the future. There are individual/ family floater policy details with different benefits. Having medical insurance with no sub-limits is helpful. Medical insurance also may include daycare procedures if it is mentioned in the policy. 

These are some common investment options you can opt for and receive great returns in the future. For more details and expert advice, contact GEPL Capital.