Best Instruments For First Investment

Hello, guys welcome back to my new blog. Today  I am gonna tell you the best instruments for first-time investors. And a special tip is wait...

Hello, guys welcome back to my new blog.

Today I am gonna tell you the best instruments for first-time investors. And a special tip is waiting for you at the end of this blog, so read it completely. This is for your educational purpose.

A lot of investment instruments are available and you can easily invest in them just via your cell phone which supports internet connectivity.

There are instruments like : STOCKS, GOLD, MF(MUTUAL FUNDS), COMMODITIES, CRYPTOCURRENCY, REAL ESTATE, etc.

In upcoming blogs, I will broadly discuss each instrument so stay tuned. So till now if you didn't follow my blog channel then you must follow and you will get information related to investing.

But now what is the best investment to start, I will tell you this briefly in this blog according to your risk factor.

So first, we need to know: What is the risk factor?

The risk factor is like how much money you are ready to lose, I am not telling you that you will surely lose money, but taking too much risk there is a high possibility to lose your money.  So before taking any risk you must consider some things:

1) 

If you have your own money to invest and want to speculate the market then you can surely invest in highly risky assets like Stocks, MF, Cryptocurrency(highest risk). Though if you have your own money I never suggest you just go and invest in riskier assets because without proper knowledge you will surely lose it all, so you must understand the risk factor. So diversify your portfolio with 50% to 70% in equity, 15% to 20% in crypto, 5% to 10% in commodities, 5% to 10% in  real estate, or other assets.

Note:  This is only for the highest risk-takers.

2)  

If you are young enough to take risks and have your own money then with proper knowledge and time you will surely make great profits. For you, I will suggest you invest in mid-cap and large-cap stocks 35% to 40% of your portfolio, with some index funds with 20% to 25% of your portfolio,15% to 25% commodities like some precious metals(Gold, Silver, etc), other you can invest in real estate(it needs big capitals), and if you wanna have some fun then you may invest 10% to 5% of your portfolio to cryptocurrency.

Now if you are thinking about why I am avoiding FD as an investment because in coming years the earnings from FD's will not fulfill your demand. That's why I am avoiding this option.

3)  

If you have your family responsibility then you must diversify your portfolio. In your portfolio, you can take some big companies' stocks which have a much lower risk 15% to 25%, or you can invest in index funds which always follow the top companies of your country which also have lower risks than small companies like 15% to 25%. Also, you can invest in government bonds, or debt mutual funds like 20% to 35%. In upcoming blogs, I will thoroughly discuss about the type of MF, government bonds, etc. Also, you can invest in precious metals like(Gold, Silver, etc)15% to 25%. Also, you can invest in real estate(the rest of other capital) but real estate always demands a huge capital to invest.

 After this, if you want some more fun and risk then surely Cryptocurrency is here for you.

4)

Now if you don't have a regular source of income or you are a student(new in this market) and don't wanna take high risks then you should avoid stocks, equity mutual funds. Rather you can invest in debt mutual funds, government bonds, liquid funds, or maybe investing in gold is the best option for you. Gold is one of the most traditional investments after all the years. In upcoming blogs, I will surely tell you how to start investing in gold as low as 100Rs. Also if you are a low-risk taker then you can invest in PPF, FD though their returns are quite low but it has low headaches. But if you want to taste the equity market then start with index funds.

Conclusion: In this blog, I divided the risk factors into 4 categories, but still there are more categories with more different peoples. So you can modify these suggestions according to your requirements.

Here are some pictures for you:

This is the BSE SENSEX graph

This is the graph of GOLD

This is the graph of BTC(Bitcoin)

You can easily see that BTC is one of the most highly volatile asset classes.

So before investing do your own research, after all this is your hard-earned money.

Special Tip: If you really wanna diversify your portfolio, then there are another option is available to invest in the US market. Yes! from India you can easily invest your money in US markets and companies like: Alphabet, Walmart, Tesla, Apple, Amazon, Microsoft, Facebook, etc. These are all MNC(Multinational Companies). There are some brokers available by whom you can easily invest in US markets. Or you can just buy an international MF(I will cover this topic on my detailed blog regarding MF). Also, the US market is more stable than other markets, so with low risk, you can easily grow your money.

In the last blog I told you about some brokers where you can easily open your first Demat account>>   Last Blog

Now if you read the whole blog then make sure to comment down below and follow our blog. I wish this will help you to make your investment strategies. And don't forget to share this with your loved ones. Thank you, see you in the next blog😀.

Editor: Rupak Chowdhury, Sk Elaf Ahmed.