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Of late, the Indian stock market has been outperforming the global markets. With India's growth potential and strong retail participation, the long-term investments are likely to give fruitful returns in the coming years due to the compounding effect. So if you have not yet embarked on your investment journey, then this festive season is the right time.

While many want to start investing in the stock market, they get confused about where to invest and wait for the right time. If you are one of them, then don’t worry. In this article, you will find a quick guide on how you can do Investing ki Smart Shuruaat this festive season. Let’s start with knowing the importance of starting during Diwali.

Why start during Diwali?

Every Diwali, a special session called Muhurat Trading is conducted by the Indian stock exchanges. For decades, both the NSE and BSE, have kept up with this ritual. As the name suggests, Muhurat Trading is considered an auspicious time to embark on the journey of wealth creation. The timing for this special session is announced by the stock exchanges based on the muhurat. 

Large number of traders and investors participate during Muhurat Trading. This makes it a perfect time for new players to enter the market as the trend remains strong. Moreover, it is traditionally believed that investing during this auspicious time brings wealth and prosperity in abundance. So if you are planning to begin your investing journey, there is no other time like Muhurat Trading to invest in Shagun Ke Shares.

Beginner’s Guide to Get Started

Although it is recommended to start investing at the earliest, you must not start it haphazardly. So, to help you start creating wealth the right way, here are some key elements that you need to keep in mind.

• Build the Habit of Saving

The first step towards investing is to set aside funds from your income. Initially, you should aim to save around 25-30% of your total monthly earnings in a separate account.

• Set Your Financial Goals

Whether you want to buy a car or a house or plan for marriage or for retirement, set definite goals. Moreover, rationally calculate the time period for each goal. Do not forget to consider repayment of debt, if any, while setting goals.

• Build Emergency Fund

For any event like pandemic or recession or unemployment, your plan must include a provision. Set up an emergency corpus with funds to cover your expenses at least for up to 6 months.

• Allocate Equity Funds Wisely

Though equity gives high return, it also comes with a higher risk. Thus, you must restrict your equity allocation. Ideal allocation rate for investors under 40 years of age is 60%. Above 40, you must restrict it to a maximum of 40%.

• Diversify to Reduce Risk

Apart from equity and equity linked products like Mutual Funds and ETFs, you can choose to invest in fixed deposits, PPF, gold bonds, etc. This will help you diversify your portfolio and scale down the risk.

Resourceful Platform to Learn the Basics

As mentioned, the first step before starting out must be to know the ins and outs of the stock market. It will not only put you in a position to assess a good opportunity but also teach you skills like patience and risk management which are crucial in this journey.

You can gain a great deal of insight from Angel One’s Knowledge Centre. It is a digital hub that contains resourceful knowledge about trading and investing in different asset classes. From stocks and mutual funds to derivatives and cryptos, you can find all the concepts and strategies here.

Wrapping Up

With discipline and consistency, you can build a long-term portfolio that helps you generate great wealth. Once you start, the compounding effect takes care of the rest. So, why wait any longer when the perfect time is right here? Do Investing ki Smart Shuruaat this Diwali with Angel One’s Shagun Ke Shares. Click here to learn more.

Disclaimer:

This blog is exclusively for educational purposes only. Investments in the securities market are subject to market risk, read all the related documents carefully before investing. Brokerage will not exceed the SEBI prescribed limit.  https://bit.ly/2VBt5c5

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