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In college, we study around 10 subjects in a year. There are four to six subjects in each semester. In eight semesters, we have to studies 48 different subjects. Still today, I try to find out the practical implications of those many subject in our real life. You may disagree with me on this subjects in our real life. You may disagree with me on this subject, but to be frank, I believe the traditional education system has very little significance in our daily life. At best, it can only help you secure a job, nothing else. From childhood to college, there are so many subjects to study, but one of the most important subjects, personal finance is missing from the entire curriculum. Whatever our profession, we all earn money, spend it and save for the future. We all need to manage our money, so money management should be one of the compulsory subjects. Yet it is missing from our entire curriculum. This is an important reason behind the fact that many people on large incomes struggle with their financial. Many salaries individuals are in enormous debt an struggling to pay it off.
We cannot expect to learn basics of the stock market from a curriculum where even personal finance is missing. Our traditional education system does not encourage learning about money and investment. Many parents are not comfortable enough to discuss money and finance with their kids. However, in real life, we all are money mangers, managing our personal finances. Investing in the stock market without having a basic understanding of how it works is like sending an amateur driver for a cruise done a winding, hilly road. By this logic, you require a reliable and informed equality advisor to help you invest in the stock market. However, if you can dedicate a good amount of time, then you can also learn the basics on your own. Based on how busy you are, you will come under any of the following three options.
Option A
If you can dedicate more than 3 hours per day or more than 20 to 22 hours per week to equity analysis, then you can master the subjects by yourself in three to five years. There is no need for an equity advisor or mutual fund investment. You can go for direct equity investment but make sure to dedicate at least 3 hours per week for five continuous years. Learning is an ongoing process. The day you stop learning, you investment will be at risk. Initially, start investing with a small amount. You have to go through many trail and error processes. Mistakes will happen but make sure not to repeat the mistakes. Be ready to lose money during the journey but consider the loss as tuition fees. Write down your every mistake and figure out what you can learn from it. Continue the process for a minimum of five years, you can master the art.
Option B
If you can dedicated only 1 or 2 hours per day, then you should hire an equity advisor, but do not follow your advisor blindly. Mutual fund investment is not advisable as direct equity investment with proper guidance will fetch better returns. Here in a single place, you can find all the important ratios and financial trends for the last 10 years. No matter from whom you are taking investment advice, I strongly recommend you check the basic fundamental strength before investing. The process would take just a few minutes. After the investment, do not forget to monitor the stock continuously. Monitoring does not meant to just check the daily stock price. It means checking management interviews, company or industry related news, latest happenings and quarterly results.
Option C
If you are too busy with your full time job or cannot dedicate a single hour per day on equity analysis or if the subject seems too boring then you have two options. Either hire a reliable and trust worthy equity advisor or go for mutual fund investment. With proper guidance, direct equity is far more beneficial and rewarding than a mutual fund if a person mangers an individual portfolio and the a the same time mangers a mutual fund, then his or her individual portfolio will outperform the mutual fund across any market situation. So your priority should be direct equity with proper guidance. Do not do it on your won because direct equity investment requires discipline, patience and above all, a wide application of knowledge. Acting on free tips from her and there or frequent trading on broker’s advice can because severe losses. It is your hard ermined money, utilize it carefully. If you cannot find a reliable equity advisory then stick with a mutual fund. However, you need to select a proper mutual fund based on your requirements. There are hundreds of mutual funds in the market, so choose carefully.
