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. 

Nov 26, 2018, 17:56 PM IST
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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. 

 

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1. Keep updating

1. Keep updating

You need to keep yourself updated with current happenings and be aware of various events in the financial markets. There are several matters that need to be looked into to keep a check on the portfolio. You may end up losing returns if you don't do that. Image: Pixabay

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2. Analyse investment

 2. Analyse investment

This should become you habit. Keep valuing your investments and rebalancing your portfolio. 
Keep an eye on how the value of your investments changes w.r.t. fluctuations in the markets, economic issues and other factors.  Image: Pixabay

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3. Mutual Funds

 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

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4. Bonds

4. Bonds

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

 

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Read financial statements

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

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6. Be wary of gimmicks

6. Be wary of gimmicks

You should always be wary of publicity gimmicks companies often put up to impress people. Try to develop a knack to read through what the company writes up on its performance as a part of the results declared. Image: Pixabay

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7. Monitor

7. Monitor

From the time you invest into a product till the time you receive your proceeds, keep monitoring throughout the Investment Life Cycle, which starts from the time you pay out from your funds to buy an asset and ends when you receive proceeds from the sale of the asset. Image: Pixabay

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8. Invest longer

8. Invest longer

You should try to remain invested for a longer time horizon to gain the maximum benefit from an investment. In fact, investment for a longer term attract less taxes. A large number of people don't do this in their bid to make quick profits.

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