Rules for Investment

What is investment planning?

An Investment means keeping aside money today, to get a higher return in the future.

Investment planning needs to be done based on the risk you are able to handle. If you are risk averse you must invest in fixed income securities. The money you invest is safe and you get interest on it.

Rules for Investment

• The longer you invest the lower your risk.
• The longer you invest the higher the return.
• Don’t invest unless you’re willing to leave it for atleast 5 years. Anything shorter than a year is called gambling.
• Remember, it is almost impossible to buy low and sell high in the short run. So don't play in the market.
• The key is long term dollar cost averaging. Dollar cost averaging means, you invest every month, regardless of where the market is heading. Do not even read the news papers, just buy month in and month out. Over the long run, this is the best strategy.