Wondering How to Start Investing? Here Are the Essentials!

Grip Invest
Published on
Nov 26, 2022
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    Tips to invest as a beginner in India

    Investment is a great way to not just save but grow your money. Keeping your money aside and creating financial assets through various modes of traditional or non traditional savings, not just generates profit but at the same time increases the value of your money that can take care of your financial needs later. Grip helps beginners understand how to start investing their money through the right investments. 

    Being young, you have many years ahead of you. While you can invest in high risk investments if you have a healthy risk appetite, you can look out for alternative low risk investments that fetch both long term and short term healthy gain. So we have listed some useful Investment tips for beginners in India that will help them plan better investments. 

    Practice budgeting your finance

    Maintain financial discipline,  track your earnings, expenses, and savings. Budgeting your finances monthly. That would give you an idea of how much to set aside for investment. 

    You can also try the 50/20/30 strategy:

    • 50% of your monthly income on expenses
    • 20% of your monthly income on investing
    • The remaining 30% on your preferences like travelling, dining out, etc

    This simple but proactive budgeting strategy will take care of your unexpected contingencies and should keep you within a budget. 

    Pay off your high-interest debt

    If your income is attached to a high-interest debt loan and the interest rates on your debt are higher than the rate of return, you must consider clearing such loans with the money you have. For example, if the average return on your investments is 10% and you’re paying 14% as interest on your debt, then it does not usually make sense in investing while keeping the debt open. 

    Define your financial goals

    Your investment plans depend on your age, as a beginner you can plan both short and long term investments. You can make long term investments for fulfilling bigger goals like starting a startup business, investing in an apartment or other future goals. Short term goals can be saving for a professional course, wedding, travel, or investing in a health insurance plan that includes your ageing parents. Once you have decided on your goals, you can evaluate which low risk investment options can help you reach these goals within your timeframe.

    Understand the basics of investing

    Remember the old adage - don’t dive in deep water if you don’t know how to swim. Don’t invest because your friends or relatives are investing or it sounds cool to be an investor. Start learning the basics of stocks, bonds, mutual funds, alternative investments, It is essential to know liquidity, volatility, indexes, tax impacts of each. While you cannot be a financial investment expert at one go, you should be open to the idea of learning and growing.

    How To Invest For Beginners? 

    Investment landscape has shifted and the secret is to diversify portfolios to as many platforms as you can. However, keeping investments heavy with low risk, low ticket investments over high risk ones is better. Go for investments that bring steady monthly returns. So your investment portfolio can include traditional investments like fixed deposits and insurance, more of alternative, low risk investments through the Grip platform.  Asset Leasing, inventory financing and corporate bonds, work on as low ticket size as  ? 10,000 on initial investment. These low risk, 1-36 months investments can bring pre tax yield of up to 8-21% . Moderately risky investments startup equity and commercial real estate investments come at low ticket sizes of ? 1-2 lacks, these fall under long term investment options. After these, if you feel like adding high risk investments like shares and mutual funds go right ahead. 

    Concluding thoughts

    While you are an enthusiastic investor, making prudent choices will help your money grow in low risk investments. Ensure that whatever your investment, the rise is healthy and the returns are monthly. Reinvest to compound the profits. With Grip you get a chance to explore a new range of investments that will not just generate healthy returns but completely grip your interest in investing and making money artfully. So what are you waiting for, visit https://www.gripinvest.in/ and make investment not just a habit but sheer joy.   

    Grip Invest
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