How to invest and get rich

Who doesn’t want to get rich? However, rarely do people equip themselves with the right mindset. What does it take to be rich?

How to invest and get rich

Planning

Unless you know why you want to invest, how can you make a wise investment decision? Creating wealth is not by chance but rather by having the right attitude and plan.

Do not time the market

There is more time spent by investors thinking about the right time to invest than anything else. In the recent past, we have seen the market crash due to the pandemic and then bounce back. So many people may still be waiting for the right time. One trick to handle this is to invest a small portion of money every month and stay put (SIPs).

Long-term horizon

Do not invest for a short period, you can be lucky once or twice but not always. The long-term horizon will force you to focus on the process than the result.

Start small

Do not think to invest a large portion of your wealth in one go, start small. This way you will be able to weather the storm of market fluctuations.

Disclaimers

• Investment in securities market are subject to market risks. Read all the related documents carefully before investing.

• The securities quoted are for illustration only and are not recommendatory.

• Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

Details of the advisor

• Advisor: Ankur Kapur

• SEBI RIA No.: INA100001406

• BASL Member ID: BASL1337

Do not invest without knowing the risk!

Risk means the degree of uncertainty or potential financial loss inherent in an investment decision. In simple terms, the risk of losing your capital is the only risk anyone should be concerned about.

Do not invest without knowing the risk

The academic world often claims the volatility of asset price as a measure of Risk. Volatility measures price movement across the average price. If the average price is 100 and the price movement is between 100-120, the volatility is low. Whereas if the price movement is 50-300, the volatility is high.

The volatility of asset price can be taken as a measure of risk as far as negative movement is concerned. Where is the risk if you buy at 50 and the price movement is only upwards, volatility may still be high.

Imagine, your investment in a fixed deposit. The volatility is low and so is the return, it is indicated a low-risk instrument.

Now, imagine your investment in high-quality stocks (Nestle, Asian Paints, etc.). The share price grows over time. The measure of volatility is unusually high even if you earn 20% per annum in a high-quality business.

As rational investors, we should see risk only from the risk of losing the capital point of view. As far as you are invested in sound assets, your probability of losing capital is low. Now combine sound assets that are well diversified, the probability of losing capital goes further down.

Disclaimers

• Investment in securities market are subject to market risks. Read all the related documents carefully before investing.

• The securities quoted are for illustration only and are not recommendatory.

• Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

Details of the advisor

• Advisor: Ankur Kapur

• SEBI RIA No.: INA100001406

• BASL Member ID: BASL1337

I cannot invest because I can’t afford it

Investing is the kind of thing that the longer you wait to get started, the more opportunity for future returns you could be giving up.

I cannot invest because I can’t afford it

Investing is the kind of thing that the longer you wait to get started, the more opportunity for future returns you could be giving up.

If you cannot invest because you can’t afford it then there are some other steps you work on first. Every move you make today is something future you will thank for. There are some important points you must consider and get ready to start investing:

Track your money and make a plan

You don’t have to track eve single piece of money you spend you need is a high-level plan so that you know what’s coming in, and whether you’re working toward your goals. There’s no perfect answer for how to find more money in your budget for investing and saving. But you must start where you are and if you can ‘pay yourself first

Start your emergency fund

From cell phones dropping to medical emergencies, financial emergencies happen, and it happens more usual nowadays. But if you’re financially prepared for them then that’s when your emergency fund takes the stage. You should have at least saved for three to six months. Start with a goal of 1 or 2 months' pay to give you a little cash cushion in the meantime call it an emergency fund.

Pay off debts

There are many different types of debts. There are credit card debts, student loan debt, etc which are usually at high-interest rates. You must pay it as soon as possible you can. If some debts are left with high-interest rates, then it would become difficult for you to focus on investment as you have high debts.

These are a few points you should consider before making any investment if you cannot afford to invest.

Disclaimers

• Investment in securities market are subject to market risks. Read all the related documents carefully before investing.

• The securities quoted are for illustration only and are not recommendatory.

• Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

Details of the advisor

• Advisor: Ankur Kapur

• SEBI RIA No.: INA100001406

• BASL Member ID: BASL1337