In today’s world for uncertainty, it is important to have investment done, but one should first understand the difference between saving and investing money and then start with the concept of investing. Savings means putting your hard earned money aside bit by bit creating a sum of money which can be used for any reason- like buying a house, getting on to a holiday, for emergencies that may crop up, for medical reasons, etc.
Investment is taking your money to the right place where it starts growing and giving you returns on annual basis of 10% and above. It can be anything like buying property, stocks, company bonds, etc. The internet share trading is a good and lucrative investment option but should be done with knowledge and expert advice.
How to get started with the share trading online
For share trading online all one needs to have a valid Demat account which can be opened up with any of the d-mat account service providers and then get the same linked to the saving account for ease of operation. Everyone should save from the earning. What should be the saving on a monthly basis or save one should have in the account at any time is a relative term. Generally, it is been said by the experts that one should at least have three months essential outgoings in the account.
The only time you should not save is when you already have debt that has to be cleared or making sure that your family does not land in financial troubles if you do not exist. Once you have fulfilled your primary task, you should plan to set aside at least 10% for your monthly earnings to get into internet trading which can in the form of equity or mutual fund.
For short term goals which are generally to be achieved in next five years, the rule is you should save and invest your money in cash deposits. The stock markets are highly volatile, and one has to have a long-term view of more than five years to have profits in the markets else one can land up into losses. For medium terms goals which are to be achieved in 5 to 10 years investing you money equity market or mutual funds are a good option, but it depends on how much risk that can be taken up.
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