6 Steps for A Successful Investment

By CIO Review Team | Thursday, 12 April 2018, 05:33 IST

Investment has always been a powerful tool to build your capital and wealth. To earn better returns, you need to make a long-term investment and take full advantage. But, it is not sure that all the investors will be successful and make the right investment.

Learning all the ‘ins and outs’ of the market and building your portfolio as an investor can take a long time and patience. There will be many trials and errors in your way for a successful investment.

Here are few steps that can lead your ways towards a successful investment.

6  steps for a successful investment

1. Get an idea to invest

Starting with the investment and being successful is not a one-day event, it will take time, and you should be prepared for it. You must have an idea in your head and should be very clear with it. Getting aware of various investment tools and different ways to invest should be pre-planned. Make your goal of investment as the plan that you will opt will depend on the goal you have. Be sure with the amount you have to invest further and grow.

2. Understand the market

The saying 'Half knowledge is always dangerous' fits here very well. Before investing, you must have the complete information regarding various financial strategies and plans that are available in the market. It is very important that you explore the market and understand what really works in the market. Only after knowing this you should invest to get better returns without any fall outs.

To understand the market, you can read financial books, or you can even take investment courses that will help you in getting the idea about various financial terms and options. Once you know the market, you can look for the deal which will work best for you as per your requirements.

3. Look for the investment plan and strategy

While surfing the market, you will come across many financial plans and strategies to invest. No one knows the best for you and your situation better than you. So, analyze your requirements and estimate your future needs to choose the right investment plan for yourself. Prepare your strategy to choose 'how much' and 'where to' invest.

Measure your risk appetite before investing otherwise you will land up in the pond of trouble. If you don't want to invest in risky plans, then you should look for a risk-free and assured return plan like a Fixed Deposit plan. Also, don't get fooled by the false friends who pretend their interests to be same as yours.

4. Know the right path

Knowing the right plan is always not enough, instead knowing the right path is also necessary. A right path for investing entirely depends on your knowledge that you have gained from the market survey, your personality and the resources you have. Your personality will showcase your risk appetite and the expected returns on your investment.

Generally, investors strategize their investment by diversifying their investment into different investment plans. By doing so, they not only reduce the risk but also plan to earn higher returns.

Most of the successful investors start their investment profile with a low-risk plan and gradually with the time they learn more investment strategy. With the passing time and increasing knowledge, they become an expert investor and eventually start taking high-risk portfolios to earn high returns.

5. Be sure with the tenor

If you want to be successful, you need to be a long-term investor. A long-term investment will increase the chances of higher returns over a period. For a long-term investor, it is a must that they should be patient and attentive for making the investments.

Therefore, you should be sure with the duration for which you want to invest. Every investment plan may have a different tenor; you may choose any investment plan as per your need. But always keep a note that long-term investments will fetch you more returns as compared to the short-term investments.

6. Learn and explore

With the passing time and continuous investment, you will be able to make calculated speculations in the investment market. The more you will invest, more you will learn. The financial market is so vast that you will always be left with some thing new to learn. So, keep on exploring and learn more to earn better returns on your investment.

The Bottom Line

Your achievement will depend on your goals, but by following these simple steps, you will be able to achieve success in no time. Good luck!

Also Read: Complete Guide to Investing




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