Investment Lessons From The Most Profitable Trades
Investors are all too receptive to the notion that they can reach their goals without significant sacrifice; their investment portfolios can work their magic. Investment selection does matter, but luck invariably plays a crucial role in financial success, too, even though a lot of the lucky ones among us don’t like to admit it.
Take Advantage of macro trend or shifts in the market :
Landlord raises the rent: Rental usually see growth of 4%-8% on an average every year across India’s leading cities. The total cost of homeownership factors in mortgage principal and interest, property taxes, insurance, closing costs, homeowners association (HOA), mortgage insurance, and tax advantages such as the mortgage interest deduction.
Covid Pandemic: The outbreak of COVID-19 has brought a dramatic transformation to how businesses ideate and operate, forcing them to critically reassess their plans. The upsurge happened at a time when the global economy was already showing signs of a slowdown.
Oil prices fall: Global oil prices have slumped further after the world’s energy watchdog warned that the massive production cuts in history, it will fail to offset the immeasurable fall in demand in 25 years.
Transforming India’s payment: We are a dedicated payments transformation team of over 50 members, working on various strategic projects in the entire payments ecosystem. Our clientele comprises government entities, card schemes, large private and public sector organizations, and payment banks.
Brilliant lesson from the great investors
- Invest in what you understand: It’s far better to buy a delightful company at a fair price than an equitable company at a price. Never try to put your hard-earned money into things you don’t understand means you know the business operation while investing.
- Invest productive asset: The assets which will produce returns for you rather than remaining idle.
- Too much diversification is not good: diversifying beyond a level is not acceptable for your financial health because then you won’t be able to track your investments.
According to his philosophy, keeping one’s attention limited to selected stocks and investment methods and not diversifying too much helps.
- Ask advice from Experts: You can learn many things by reading books and blogs, but sometimes, talking to someone is much better. They can give you advice based on their experience or laws and regulations regarding financial instruments. Even if you have to pay them a small fee, at least you know you will be getting real, solid advice.
- Invest in the Long term: If you had a lot of money, skill, and time, you can’t make a lot of money with individual stock purchases. However, something that has proved is the power of long-term investing. If you invest now in good stocks from reliable companies (or even in an index fund) and leave it there for 20 years, you can have enough time to ride out any dips and still come out on top.
Best profitable options in India in 2020
- Stockmarket: A stock market investment is another best investment options in India. Stock market investment can make you wealthy in a short time. There are many examples of Mutlibagger stocks like MRF, Caplin Point Laboratories, Infosys, TCS that have made investors wealthy over the long run. However, it is strenuous to identify the best stock for Investment. Knowledge and skill are a must for stock market investment. If you have proficiency, skill, and high-risk taking that you can plan to invest your money in the stock market.
- Real Estate: Real estate is a profitable investment option in the long run. Real estate has many prospects like hospitality, commercial, retail, housing, manufacturing. However, the money required for investing in real estate is immense. You can expect a decent return from real estate over the long run. Real estate investment is nonliquid in nature and may require black money for finance.
- Saving schemes: A savings account is the best choice for those who need to access cash shortly. Savings accounts are about as liquid as your money gets. You can add or remove the funds at any time. The post office saving scheme is also on the list of best investment options in India. The post office offers multiple strategies for stack-based on investor’s needs. It proffers you a 6.7 to 7.5% interest return.
- Government bond funds: If you are not comfortable investing in risky investment choices, you can invest in bonds handled by the government. There are several good bands in the market that provide a high return on speculation. A 10-year bond typically offers 8% interest.
- Rental housing: Rental housing can be an extensive investment if you have the willingness to manage your properties. It could be a great time to finance the purchase of a new property. You can do very well if you make smart purchases.