The surge in India’s mutual fund industry reflects a remarkable appetite for equity and financial literacy among the populace. As technology democratises access to financial markets, an increasing number of new-age investors are entering the fray. For those embarking on their investment journey, here are some investment ideas that may give more returns in the long term.
Nikhil Aggarwal, Founder & CEO at Grip suggested four ideas to earn more returns in the long term
Understand your risk profile
Investing always involves risk, and comprehending one’s risk tolerance is paramount. “While higher risks can yield greater returns, align your investment goals with your risk appetite. The market’s volatility and shifting trends can lead to uncertainties, but recognizing that investing is a long-term endeavour is crucial,” said Nikhil Aggarwal.
Research before investing
Entering the market without sufficient knowledge can lead to financial pitfalls. Nikhil said that thorough research and analysis provide insights to navigate the market’s intricacies, mitigating potential losses and enhancing chances of favourable returns.
Long-term investment
“Historically, long-term investments have yielded positive results. Weather short-term losses caused by market fluctuations and concentrate on the overall trajectory for maximized returns,” said Founder & CEO at Grip.
Build a diversified portfolio
Diversification and asset allocation are linchpins of successful investment. As per Nikhil, by spreading investments across various sectors and asset classes such as Corporate Bonds, Securitized Debt Instruments, Startup equity, and CRE; risk exposure is mitigated. This strategy safeguards against losses in one sector and bolsters the potential for long-term growth.
“Investment in early-stage companies and VC funds, provide the kicker to portfolio returns while building valuable companies,” said Padmaja Ruparel, Co-founder at Indian Angel Network (IAN).
Disclaimer: The views and recommendations made above are those of individual analysts, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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Updated: 12 Aug 2023, 01:14 PM IST
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