You are not late yet pin your investment resolution 2022…
There is a Shayari in Hindi that says,
“चाय का कोई समय नहीं होता,
हर समय सिर्फ चाय होता है!”
This translates to, there is no particular time in drinking chai (hot beverage), anytime is chai time.
In the same way, there is no right time to invest if you decide, and anytime is investing time.
However, there are certain parameters that revolve around risk factors, age, time frame etc for your customised investing plan.
I’m sure you already must have made other New-year resolutions and plans on health, finances, education, family etc.
I’m glad that most of you must have given a thought to your financial slice.
Let this resolution be a bit special, let us plan to become better investors this year.
As this year starts with high spirits even from the market perspective compared to 2021, here are some principles coupled with simple rules exclusively for you which will make your investing life much easier.
To kick start here are ten investing resolutions to guide your investing expedition!
- Recognizing your investments
When you think of Investing, have a goal set.
This goal can be buying a house in 5 years, student education, vacation, child’s marriage etc.
If you are not confident about starting with it, it’s better to talk help of professional aid through your investing journey.
Or if you think you need professional assistance which is emotionless you can always go for Artificial Intelligence, and who’s is better in the market than JARVIS INVEST.
Acknowledging your investment goals and recognising the types of risk that might hinder your portfolio’s confidence in the future so that it’s easy to digest and be stress-free further.
This would aid you to customize or choosing the perfect investment product mix!
- Don’t put all your eggs in one basket
This is the oldest thumb rule and hence the golden one which holds the greatest significance in the investment rule book.
Diversify among sectors, diversify among different stocks in the same sector if possible.
Diversification might sound difficult but with Artificial Intelligence it’s magic.
Some stick to Fundamental analysis, some with Technical analysis while the other with Quantitative analysis.
Each individual exerts belief in their own guiding principle for investment.
But here’s the fact which most of them identifying themselves as experts don’t realise, markets are irrational!
This means there are multiple factors that control the market, it is a series of global sentiments, herd mentality and loads of things.
In short, markets tend to slightly underreact at any information or event at the start but eventually herd sets in and sees the opportunity and create a trend and hence the market overreacts.
Fundamental Technical or Quantitative analysis can only predict the possibility of the trend but not the exact price moments of the stock and the stock journey.
Here at Jarvis Invest, you don’t have to worry about any of these for JARVIS manages your portfolio and profits quite well.
- Asset Allocation
Asset allocation and diversifying are factors that contribute to the health of your portfolio.
Asset allocation aids in improvising your investing.
You must be wondering improvising in what sense?
Here at JARVIS INVEST, once our risk profiling is rendered, you can customize your portfolio else if you think that’s something you are not confident about leaving it to our Artificial Intelligence and it will make sure to come up with a reasonable asset allocation for you.
Asset Allocation is not a one-time thing, it’s a process.
Asset allocation has to be tactical keeping in mind the market is irrational.
- Allocate, Reallocate and Rebalance
There is no guarantee that the strategy we used previously in the market would work this year as well.
It simply doesn’t make sense.
Hence, there must be periodic re-allocations and portfolio management.
These two are together called Rebalancing.
Ideally, one must rebalance the portfolio at least once every year.
Re-balancing is strategy is simple periodically fixing your portfolio to adjust the market turbulences thereby not affecting our profits and minimizing losses.
- Don’t avoid SIP’s
If you are a total beginner in the investing space, my dear fellow investor SIP (Systematic Investment Plan) is for you.
The key here is to start investing with a comparatively less risky instrument.
It is always advisable to have a SIP as part of your investing plan.
Note that investing in the index funds blindly is not appreciable, it’s unwise.
And most importantly note that, if you have a running SIP in a fixed deposit – you’re doing right!
Therefore, SIP in a momentum-based product is advised.
- Avoid Trading
The equation is simple “More trading would mean more fees”.
The fees paid are unnecessary just for action in your portfolio.
Note that a higher number or trades does not guarantee better returns.
Stay put with your portfolio for a long horizon keeping in check on the portfolio health parameters.
- Investing Global Market can be a good idea!
The major benefit for investing in Global markets is availing the benefit of hedging volatility.
- No FOMO only JOMO
Behavioural Investing trends in the market!
With whatever analysis you gauge the market the end result stops with saying “Herd Mentality”.
And this is perhaps the worst enemy of a Trader.
What is the best way to stay in the market a stress-free way?
The best way is by adapting to a systematic strategy.
Systematic Strategy is simply staying calm no matter what and how the markets react.