Want to become crorepati with Mutual Funds, Shares, Bonds? These tips will never let you lose money
Want to become rich? It's easy. Just invest money and wait for the return! Well, this doesn't happen exactly.
Want to become rich? It's easy. Just invest money and wait for the return! Well, this doesn't happen exactly. While investment is one part of the process of getting rich, the toughest part consists of smart planning and consistent monitoring of the invested amount. Here are a few tips that will never let you lose money.
1. Keep updating
2. Analyse investment
3. Mutual Funds
Keep a watch on the daily NAV (Net asset value) of the particular fund. Be aware of various financial ratios like profit margins, solvency ratios and liquidity ratios, which give you an idea of how the said company is in terms of profitability of its projects, share value and other factors. Image: Pixabay
Be aware of the bond’s maturity, rate of interest and other elements of the bond. If you are aware that the company has earlier defaulted on its interest payments on its borrowings, then it is better not to invest in securities of that firm. Try to get a good grip on valuation techniques like ratio analysis and investment pay-off. Image: Pixabay
Read financial statements
Looking at financial statements of companies will help you analyse your investments. Check how the companies have performed in past. If you expect the company to perform well in future, then you may think of investing in that company.
Try to familiarize yourself with the financial statements of the company. This will make you understand how the company utilizes its finances. Image: Pixabay