Hi Darshan. Investing is essential to ensure your investment goals are achieved. Before you make a decision about investing you should be clear about: what are you investing for (retirement, taking care of family, going for a holiday, buying house), how much risk you can take and your investment horizon.
Your age also plays an important role in deciding where you should invest - if you are young more allocation should be done in equities while as you grow older you should move towards safer assets like Debt. You must also create a portfolio that is diversified across different asset classes: equity, property, gold, debt, cash.
You should take help of a good investment advisor who can help you prepare and investment plan and also monitor performance of your investment and provide right guidance at the right time. I take help of a FP at Arihant Capital and I am very satisfied. You can email at research@arihantcapital.com and get in touch with them.
You can also start small investment using mutual fund SIP or through ETF. To know more about ETF, click here: http://arihantcapital.wordpress.com/2014...
You should make an appointment with a Financial Adviser at your bank, don't take any investment advice from anyone on the internet as you might be mislead or not fully understand what kind of financial risks you are taking. A Financial Adviser will take a close look at your current financial situation and from there determine the best path for reaching your desired goal at a risk that you are comfortable with. Most banks are very helpful when approached with questions of this nature.
If you are seeking to learn about managing your own funds there is a lot to learn. A good place to start is building a solid understanding of Accounting, then moving on to Fundamental Analysis (analyzing Financial Statements, and basic company valuation). At the same time you will greatly benefit from reading up on Microeconomics and Macroeconomics. You should also learn what Diversification means and the strategies you can use to utilize this efficiently. You should also start reading full Quarterly and Annual Reports for as many companies that you can.
Take a look at investopedia.com for an introduction to a lot of the terminology used in finance. There are thousands of books available on all these topics on Amazon.com (nothing can substitute actually studying these topics).
Just understand that investing in any financial instrument requires solid knowledge and can carry great risks.
I'll leave you with this quote (understand what it means):
"Bulls make money, bears make money, pigs get slaughtered"
- Peace!
If you have reasonable amount to invest then go to a professional. Better still, several.
Otherwise, I suppose, establish how much money you can invest (say on an arbitary 5 year term). Establish if you are looking for income or capital appreciation and what is your attitude to risk.
Maybe a good start then would be to buy a collective fund of some sort. I would suggest an Investment trust or two.
use a local library for your investment education
as the laws vary
I want to make some financial investments but don’t know how to go about it? I need guidance in investments and my wealth management
