New Year Investment Resolutions for a Better Future
It is the end of the year. Some of your financial goals are already achieved before time, and you still have time and money left before the year ends. What are your plans for the New Year, particularly concerning investments?
Financial times are ever-changing, so you must invest in mutual funds to plan for a better future. Even if you’ve achieved what you thought you should for this year, that doesn’t mean you cannot do or learn more. If you haven’t started yet, let’s make it a part of your New Year with some actionable investing lessons.
1. Start now but focus on the long-term goals
If you have just started earning an optimum amount every month, it’s important not to think of investments as a part of the future. Here, setting certain long-term goals is important to get the required direction for your investment efforts.
The earlier you start investing a certain amount monthly in mutual fund , the longer you give to the investments to grow into a significant corpus. So, why not begin the investment journey this New Year?
Indeed, the final wealth you create depends on the amount you invest, where you invest it, and the market conditions. Also, consider your risk appetite before investing in different mutual fund schemes.
2. Invest for your retirement
Thinking retirement isn’t something to plan for in your 20s? This is not the right way to think about it, particularly when you aim to achieve financial freedom by the time you retire. Wealth creation takes time. You might feel good about not investing anything in the current age. But it may make you repent later.
What do you think of your retirement? What do you want to do at that age, and how much will you need to avoid financial worries?
One of the basic investing lessons is to keep these goals in mind and start investing in the right mutual fund schemes starting this New Year.
3. Spend time learning how to invest right
Many of your peers might already know about this. If you are not doing the same, you may eventually feel like lagging in terms of a well-defined investment portfolio.
If your job pays you for every hour you are at work; you know the importance of time more than many others. The longer you work, the more you will get paid. However, in terms of investments, it is not about spending your days and nights buying and selling mutual fund units. It does not work that way.
Therefore, it is crucial that you also invest time in understanding various investing lessons to stay on track to achieving your goals.
4. Learn to deal with the adverse market conditions
The market conditions change quite often and may impact your mutual fund investments more often than not. So, how should you deal with unfavourable market conditions? Should you sell all your mutual fund units if their Net Asset Value
(NAV) falls below the one you’ve bought them for?
The answers to such critical market-related questions become clear and profound as you continue to learn how to invest right. For example, when the market is down, many of your peers might suggest you not invest in equity mutual funds
. However, if you do so, there is a possibility that the NAV of these funds will gradually cross the mark they reached during market upturns.
It’s all about your perspective and understanding of adverse market situations.
5. Start investing a small amount from the next January
Still doubtful whether you should begin your journey as a mutual fund investor this New Year? It is quite obvious to feel the ambiguity if you haven’t ever invested before.
If you feel you can only take the risk up to a certain extent, start investing a small amount and see how it goes. Learn more about the process of investing, types of funds, and risk appetite calculation to simply continue the path.