Where to INVEST in 2024? | Investing Tips for 2024! | Ankur Warikoo Hindi
warikoo・20 minutes read
Understanding the time and rate of return is crucial for financial success, along with prioritizing protection before investing. Starting with low-risk options like Fixed Deposits and gradually moving to high-risk investments can help build a balanced portfolio over time.
Insights
- Investment portfolios can double every two and a half years with a 20% annual growth rate, emphasizing the power of compounding over time.
- Prioritizing protection through health and life insurance, maintaining an emergency fund, and starting with low-risk investments like Fixed Deposits before delving into medium and high-risk options is crucial for a successful and diversified investment journey.
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Recent questions
How can I start my investment journey?
Begin by prioritizing protection before investing. This involves securing health insurance for family members, especially aging parents, and ensuring life insurance coverage of 15 to 25 times your annual salary for financial security. Additionally, maintain an emergency fund equivalent to 6 to 12 months' worth of expenses in a Fixed Deposit. Start with low-risk investment options like Fixed Deposits, EPF, PPF, NPS, and gold before gradually exploring medium-risk investments such as corporate bonds, real estate, and mutual funds or stocks.
What is the importance of understanding time and rate of return in investments?
Understanding the time and rate of return is crucial for financial success in investments. By comprehending how investments grow over time, individuals can make informed decisions about where to allocate their funds. For example, aiming for a 20% return within 10 to 11 years can help reach a target amount like Rs 100 crores. This knowledge allows investors to strategize and plan their investment portfolio effectively to achieve their financial goals.
What are some high-risk investment options?
High-risk investment options include stock trading, futures and options, startup investing, and cryptocurrency. While these avenues carry significant risks, they also have the potential for high returns. It is essential for investors to thoroughly research and understand the risks associated with these investments before committing funds, as they can be volatile and may not be suitable for all individuals.
How can I diversify my investment portfolio?
Diversifying your investment portfolio involves spreading your investments across different asset classes to reduce risk. One strategic approach is to invest in industry-specific mutual funds, such as IT, agriculture, or banking, to diversify your portfolio. Additionally, a balanced investment strategy may include holding three mutual funds - large cap, mid cap, and small cap - in a ratio of approximately 60:30:10 to 15. This diversification helps mitigate risk and optimize returns over the long term.
What are some beginner-friendly investment options?
For beginners, starting with equity mutual funds through systematic investment plans (SIPs) can be a great way to enter the world of investing. SIPs instill discipline and understanding in investing, allowing individuals to gradually explore riskier investment avenues like real estate or low-risk assets. By starting with beginner-friendly options, investors can build a strong foundation of financial knowledge and experience before delving into more complex investment opportunities.
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Summary
00:00
"Financial Success: Time, Return, Protection, Investment"
- Investment portfolio is Rs 135 crores, growing by 20% annually, doubling every two and a half years.
- After 35 years, Rs 135 crores will become Rs 27 crores, then Rs 27.50 crores, and finally Rs 27 crores.
- To reach Rs 100 crores, aim for 20% returns within 10 to 11 years.
- Understanding time and rate of return is crucial for financial success.
- Begin investment journey by prioritizing protection before investing.
- Health insurance is vital for family members, especially parents as they age.
- Life insurance should cover 15 to 25 times your annual salary for financial security.
- Maintain an emergency fund of 6 to 12 months' worth of expenses in an FD.
- Low-risk investment options include Fixed Deposits, EPF, PPF, NPS, and gold.
- Medium-risk investments encompass corporate bonds, real estate, and mutual funds or stocks.
15:46
Diversify with Industry Funds for High Returns
- Small cap companies are a high-risk investment option but can yield high returns, especially for long-term investors.
- Investing in industry-specific mutual funds, such as IT, agriculture, or banking, can be a strategic approach to diversifying your portfolio.
- A balanced investment strategy may involve holding three mutual funds - large cap, mid cap, and small cap - in a ratio of approximately 60:30:10 to 15.
- High-risk investment categories include stock trading, futures and options, startup investing, and cryptocurrency, each carrying significant risks and potential high returns.
- For beginners, starting with equity mutual funds through systematic investment plans (SIPs) can instill discipline and understanding in investing, gradually leading to exploring riskier investment avenues like real estate or low-risk assets.
