As someone who is reluctant to invest when an opportunity presents itself, you may miss out on growing your bank balance. It is natural to experience feelings of anxiety, fear, and stress when your earnings are on the line, but keeping in mind a few simple points will help you overcome your fear of investing and enjoy the journey of building your corpus.
You can choose to place your money in an instrument not linked to market performance such as an FD or park your money in market instruments wisely. To ensure you have a smooth journey, look at top tips to overcome investor phobia.
Acquire the right knowledge
Having the right knowledge is important when you are working towards becoming a successful investor. You do not need to know everything about the market but you must know the ins and outs of the instrument that you are choosing.
This could include stock performance, market trends, interest rates on FDs, or taxation laws. Knowing the subject thoroughly will make you confident, capable of making smart decisions and won’t leave you hanging on to your financial advisor’s every word.
Build wealth with incremental gains
When taking your first step towards putting your money to work for you, you must set realistic goals. Look at the annual growth index, offered rates of interest and trends, and tally figures accordingly. Even with the right knowledge, it is unlikely that you will triple your wealth in a matter of months. Instead of trying to hit the jackpot focus on incremental gains. Start small, test strategies and ladder your way to the top. You get better results through smaller, consistent earnings rather than risking a large amount for ‘possible’ gains.
Have a plan and execute it
Evaluate and re-evaluate your plan of action and try various investment Schemes in New Year. Some can help you gain exponentially while others may seem confusing and slow down your growth. Thus, it is important to find what works for you and adjust it over time to make it your own personal strategy.
Be organized and do not make emotional decisions
It is easier to spot a mistake or make a correction, especially when dabbling in stocks when you organize and simplify your investments. This will reduce the chances of you feeling overwhelmed or losing track of your investments. Also, it is important that you learn from your mistakes and don’t make hasty emotional decisions. Behavioral finance concepts can help you set your emotions aside and objectively create wealth.
A wise way to build your finances is to have a diversified portfolio, which includes FDs, PPF, stocks, bonds and real estate. If keeping your money safe is paramount, consider starting a Bajaj Finance Fixed Deposit (FD) that offers you lucrative returns up to 8.75% when you start a cumulative FD for at least 36 months and up to 9.10% as a senior citizen. Your money is safe as Bajaj Finance FDs are rated high on stability and credibility with ICRA’s MAAA and CRISIL’s FAAA ratings. Further, your earnings are guaranteed as there is no influence of market performance on your investment.
So, start an FD today with an amount as low as Rs.25,000 and begin enjoying the benefits of compound interest without taking on risk. You can use tools such as the FD calculator to know the exact amount that you will receive at the time of maturity. FDs are a great way to earn money and save for a purchase or payment at a later date such as buying a new car or financing your child’s education.
Now that you know how easy it is to overcome your investment phobia, get started with creating a plan for 2019 to make the most of your money.