The global pandemic of 2020 saw many new investors try their luck. But while doing so, many faced losses in a bid to earn big and quick. Zerodha’s CEO Nikhil Kamath revealed in an exclusive interview on LinkedIn, how new investors could avoid certain mistakes to invest safely and surely.
Here’s the detailed video,
Are you looking to make an investment soon? Keep these tips in mind.
Just Because Everyone Else Is Buying, Doesn’t Mean You Have To As Well
While it may look appealing to invest in stocks, you don’t have to do it just because everyone else is. Know your sector well, seek expert guidance and invest only if you’re sure of the stocks. Profit and loss will always be a factor however your expertise and learning can take you a long way.
Keep Your Portfolio Diverse
Kamath notices how most Indians don’t diversify their profiles enough. Diversification is key to building a strong portfolio. It might not be as effective in the short run but it definitely pays well in the long run.
Get the Hedge
Kamath personally enjoys hedging a little in his portfolio. While it does not have to be a natural hedge on the same company, you can try your luck on other verticles to gauge the strength and weakness of your portfolio. Always try to play out of your comfort zone rather than staying vanilla on the things you like.
Source: Live Mint