Investment is a crucial pillar of wealth creation. For beginners, the vast array of financial products can appear overwhelming. A structured approach ensures informed decision-making and minimizes risk.
Begin with clarity�short-term goals (1�3 years), medium-term (3�7 years), and long-term (7+ years). Goals determine the choice of financial instruments.
Higher returns generally accompany higher risk. Assess personal risk appetite based on income stability, age, and financial responsibilities.
Systematic Investment Plans (SIPs) allow periodic investments and reduce market timing risk. SIPs help build wealth steadily through disciplined investing.
Spread investments across asset classes to reduce exposure to market fluctuations.
Following fundamental investment principles enables beginners to make informed decisions and steadily build long-term wealth.