IGI Logo

If you’re new to the markets, you may want to know how to maximize your potential such that you can generate wealth from your investments and easily navigate the bear market. Investors, and in particular, beginners, should follow solid investment strategies such that they have a greater chance of generating returns.

You should also brush up your knowledge of the financial market and various investing techniques. For this, Angel One’s website features a Knowledge Centre where you can learn about the stock market. Here, you can understand how to make wise investments and can grasp what the different instruments are that operate within this market and can understand which securities are best suited to your investor profile.

Continue reading to understand smart ways that you as a beginner can add to your investment routine.

Pointer #1. Portfolio Diversification is a Must – By diversifying your portfolio, you can adjust the risks you are exposed to in case of a downturn. A great method to do this is by taking advantage of Angel One’s rule-based investment engine ARQ Prime¹. It provides you with Smart recommendations that are free from human bias. With the aid of Smart Beta, ARQ Prime recommends quality, high momentum, value and growth stocks. The stock recommendations are each made after considering what your goals and capacity for risk are. You minimise the risks you expose yourself to by using ARQ Prime as it helps you cut your losses early on.

Pointer #2. Keep Constant Tabs on the Market – As a beginner, it is important to adopt good investment practices that you can maintain over the course of your investing career. One such practice is keeping a constant check on the stock market. Angel One’s YouTube channel allows you to do just this. Videos are uploaded on a regular basis and discuss a number of topics. These include news relating to the markets, IPO reviews and educational content focused on the market. Since they each employ a conversational tone, it is easy to watch and understand these videos. 

Pointer #3. Don’t Be Afraid of Volatility – Rather than being afraid of challenging times, be on the lookout for viable investment opportunities during this time that can withstand the volatility.

Pointer #4. Optimise your Asset Allocation – Take into account your age, income and expenses, capacity for withstanding risk, the assets and liabilities available, investible surplus, what your financial goals are and the broader investment objective. Consider what amount of time you are willing to allocate to achieve your financial goals.

Pointer #5. Investing is a Continuous Process – In order to fulfil your goals, you need to keep investing. It isn’t recommended that you take gaps between investing for if you do the power of compounding doesn’t get a chance to kick in. Further, inflation could end up eating into the purchasing power of your money.

While the mentioned above pointers are only suggestions, it is recommended that you apply them in your investment as early as possible. These pointer will help you build your portfolio and navigate the bear market. Angel One is here to guide you through your investment journey and help you make smart investment decisions with its advanced digital offerings. Become a smart investor in the market and get started with Angel One today.

Disclaimer

¹ARQ is not an exchange approved product and any dispute related to this will not be dealt on exchange platform

²This blog is exclusively for educational purpose

³Investments in 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