What care should one take while investing?
People have a tendency to invest by listening to others including the “so-called” experts on television, newspaper, magazines, neighbors, friends and relatives.
But it may happen that the stock which they are suggesting may be suitable for him/her but not for others since financial net-worth, risk taking capacity and time plays a key role in investing.
Saying a stock which looks a very poor investment in the short run could be a very good investment for the long term.
Hence, the right path would be either to give your money in the expert's hand or rather start with your own research.
A novice investor may face gains or losses initially, however, with experience he shall be able to build his own strategies and will be able to invest based on his own wisdom.
What are various options available for investment?
Market is flooded with different modes of investment. However, it depends on the risk aversion ability of the investor as to whether he invests in high risk options with greater returns, low risk options with moderate returns or no risk modes available.
Accordingly, the categorization can be as follows:
