Hi friends. Angel One ke is podcast mein aapka swagat hai!
Dosto iss podcast mein hum baat karengein about financial strategies you should consider to leverage for increasing your wealth. Honestly, iss par toh ek puri book likhi ja sakti hain, kyuki bahut saare wealth generation strategies hote hain, but here are some of the commonest and most easily pursued savings and investment strategies that you should consider right away!
Value investing
Value investing is one of the most famous stock market investing strategies, jis mein investors sirf undervalued ya discounted stocks khareed lete hai. Stock market pe stock prices hamesha justified nahi rehta. Kisi downtrending or loss incurring company ka stock mehnga ho sakta hai due to some manipulation or just simple demand-supply economics. Ussi tarah kisi profitable company ka stock sastha reh sakta hai for the same reason. The stock market price need not always be indicative of the stock’s actual value.
Ek process hai, jisse investors stock ka intrinsic value – ya real value – pata karte hai. Agar stock ka real value, market pe chal rahi wali stock price se kam hai, the investor buys the stock. He then sells it when it becomes overvalued. Yeh strategy mein risk thoda kam hai because the investor is buying the stock of a company that has business potential and he is also buying the stock when the price is lower than usual. As a result earnings milne ki possibility zyaada hai.
Invest for the long term
Zyaada tal stock market risk stabilizes – flatten out hota hai – long term mein. Short term mein ji haan volatility bahut jyada hota hai. For beginners volatility is the word used for the fluctuating stock price. The more it drops and rises with every minute, the more volatile a stock. When you are day trading stocks, the risk is therefore comparatively higher.
Lekin long term mein these dips and spikes don’t make a difference provided the stock has an overall upward movement. Hence investors are always advised to invest for the long term. Companies have bad days and good days, bad weeks and good weeks lekin long term mein, companies who have a strong business will usually have a stock price that only moves upwards.
Rupee Cost Averaging
Yeh funda toh mutual funds aur stock market investments mein bahut popular hai kyunki just like value investing isse “buy in price” se related risk kam kar sakte ho. Rupee cost averaging mein investor fixed amount, fixed interval or fixed stock/ mutual fund mein invest karte hain. The prices of the stocks fluctuate by the minute and that of the mutual fund units fluctuate daily. As a result, kabhi kabhi aapko kam shares/ units mil jayega lekin kabhi kabhi aapko same price mein bahut saare shares/ units mil jayenge. Aapka cost of shares ya cost of mutual fund units average out ho jata hai.
Harness the power of compounding
Power of compounding refers to compound interest (haan school mein pada tha yeh cheez!). It actually refers to interest earned on interest. Each time you earn interest on your principal, it is added to the original amount, which then becomes the principal for the next cycle. This allows exponential growth for your interest. Soch lo ki aap Rs 1000 invest kar rahe ho and you are getting a fixed 10% interest. Your investment becomes ₹1,100 after the first interest, then Rs 1,210 after the second and so on.
Apne stock market aur mutual fund earnings ko reinvest karna so that the interest amount you are earning grows as your base capital grows.
Invest towards financial goals
Aap apne financial goals ke liye invest kar sakte ho to avoid taking loans and having to pay interest. In general, paying interest is not in line with wealth generation. Ulta aapko interest sirf earn karna hai.
Gaadi khareedna chahte ho? Why not invest towards it? Investors might opt for a 3 to 5 year term mutual fund with medium to high risk, or might put investment capital into stocks depending on their risk appetite, expertise and confidence.
Especially for things like vacations, home appliances, cars and bikes and higher studies it is possible to plan ahead and pay your own way – if you plan it right you might still be able to hold on to some amount of your capital. Even if you have very small earnings and have to take a partial loan, it is better than having the whole amount on credit and then paying huge amounts of interest.
Pay off high interest debt
Paying late payment penalties and interest on your credit cards bilkul stupidity hai bhai. Aap apna paisa aise free mein kabhi mat dena kisi insurance company ko. Ab toh no cost EMI bhi mil jata hai toh at best make use of a service like that lekin please credit card debt mein mat phas jao. You can be paying up to 25%, even 40%, even more! On your outstanding credit card amount.
Ek cheez abhi ke abhi samaj lo: Minimum amount payable is the amount you need to pay to keep your card active. Baaki amount pe interest – who bhi compound interest – add hote ja raha hai! Pay off as much as possible and be done with it. Adjust your risk appetite appropriately
Agar aap salaried ho, aapka acha stable naukri hai aur aapke koi dependants nahi hai toh perhaps aap thoda risk le sakte ho. Dependent matlab spouses without earnings, children, un-salaried or aged parents who do not have retirement funds or disabled siblings that are financially dependent on you. After all you are unlikely to need your invested capital immediately. Consider your risk appetite carefully.
So people, Learning this was fun, wasn’t it? Don’t let the learning stop here, do check out other similar podcasts, videos and educational content on the Angel One Website and our Youtube channel. . Chaliye milte hain next time. Tab tak ke liye, goodbye from angel broking, and happy investing!
Investments and the securities markets are subject to market risks. Read all the related documents carefully before investing.
