7 Things to Know Before Investing 

Author : Mukul Kumar

Starting your Investment Journey? Wait! First, learn these 7 essential things before you invest your hard-earned money. Chalo, let's begin! 

Know Your Goal (Lakshya). Are you saving for a new phone, a house, or retirement? Your goal decides where you should invest. Don't invest without a purpose! 

Thing 1 - Why Are You Investing? 

Understand Your Risk Appetite. Are you a 'safe' player or a 'khiladi'? Investments like FDs are low-risk, while stocks are high-risk. Choose what suits you. 

Thing 2 - How Much Risk Can You Take? 

Power of Compounding ko samjho! It means earning interest on your interest. The sooner you start, the more your money grows. It's like a small snowball turning into a big one! 

Thing 3 - The Magic of Compounding 

Diversify Your Investments. Ek hi jagah saara paisa mat lagao. Spread your money across different options like Mutual Funds, PPF, Gold, and maybe some stocks. 

Thing 4 - Don't Put All Eggs in One Basket 

Beat Mehengai (Inflation)! Your investment should give returns higher than the inflation rate. If not, your money's value is actually decreasing over time. 

Thing 5 - Understand Inflation 

Create an Emergency Fund. Before investing, save at least 6 months of your expenses in a separate bank account. This is your safety net for tough times.

Thing 6 - Have an Emergency Fund First 

Keep Calm and Be Patient! Investing is a marathon, not a 100m race. Don't panic during market ups and downs. Think long-term for the best results. 

Thing 7 - Be Patient