IGI Logo

Smart investors are those that are capable of making prudent investment decisions that are likely to pay off in the long run. In order to be a smart investor, consider the following steps

Step 1. Be aware of and grasp the difference between saving and investing

While saving is often associated with smaller, shorter-time frame goals such as purchasing a car or spending money on a financial emergency, investing is ordinarily intended to help fulfil larger, long-term financial goals. These are on average at least five years away and pertain to more substantial goals such as creating a corpus for your child’s education or planning a retirement fund.

Step 2. Tackle existing financial issues prior to investing

Prior to investing it is worth tackling major financial issues that you might have on hand. By creating a budget for yourself, you can free up some money that you can direct towards investing on a regular basis. Expensive credit cards or loans that have high levels of interest rates applicable on them should ideally be dealt with first.

Step 3. Understand the importance of setting financial goals

Smart investing requires investors to direct their funds towards investments keeping in mind specific goals such as creating provisions to fulfil retirement plans, leaving an inheritance for heirs or even wealth building. As financial planning and setting financial goals is important here, those seeking to learn more about the same can head on over to Angel One’s Knowledge Centre which provides ample resources on the same.

Step 4. Do ample research and invest according to your risk tolerance

Specific investment goals allow you to make realistic investment decisions and accomplish financial goals without unnecessarily exposing yourself to market risks. Apart from learning the risks associated with each  investment vehicle, you must understand the extent to which you are willing to expose yourself to risks and figure out what risks are most harmful to you.

Should you be interested in being provided with smart investment recommendations, consider using Angel One’s ARQ Prime¹ which serves as a smart rule-based engine. Its value lies in the fact that it recommends growth, value, high momentum and quality stocks that are based on time-tested, proven rules that aren’t influenced by humans.

Step 5. Constantly work on educating yourself

Regardless of whether or not you make use of a financial planner or other professionals operating within the realm of investments, you must have a firm understanding of and remain aware of the market and all new asset classes. One viable method via which you can stay in the loop is by visiting Angel One and

reading their research reports. These can be read on a daily, weekly or monthly basis and allow investors to make informed decisions with regards to their investments. These investments can operate within the equity, commodity and currency segments.

Step 6. Align your investments with your financial goals

While there exist several different financial products in the market today, they should be selected keeping in mind your investment goals, the time frame you are willing to invest in them and the investments you already hold. The shorter the time within which you need funds available, the more conservative your investments should ideally be.

Wrapping Up

One of the most important aspects of being a smart investor entails diversifying your investments and reducing the risk you expose yourself to. In order to gain the knowledge needed to successfully navigate the financial markets, visit the Angel One website today. Here, you can gain the tools needed to better handle your investments and can learn the art of smart investing.

Disclaimers

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