Investment Lessons to Learn From the Year 2016
The year 2016 has been tumultuous one for the stock market. The ending few months have been among the most challenging ones for the Indians to survive without or with less cash due to demonetisation of high-currency-notes. The market has been highly volatile and investors’ capital suffered a lot. But now as the new year 2017 is approaching soon we need to set ourselves ready to grab the best coming opportunity.
For that, there are some lessons from the year 2016 we have learnt which must be kept in mind. Just have a look here!
- Expect The Unexpected:- There is a saying that goes, “We can’t direct the wind but we can adjust the sails.” Investing is no wonder a game of faith as nothing is certain and everything is build on expectations. The market moves are highly volatile and take our investments into any way without giving an alarm or notification. Thus, it is a lesson for every investor that in order to play safe in the investment market, one needs to consider the things which are highly unexpected. With this, you would be assured of high yields in an unexpected scenario.
- Risk is a Primary Ingredient for Investing Recipe:- Whenever we think of taking an investment decision, there are factors that we have to consider to make the plan certain. Risk measurement and evaluating several factors related to market volatility must be considered while taking the investment decision. The concept of risk-adjusted returns is among the most important factors which has to be taken into consideration for making a wise and return-oriented selection among the alternatives.
- Be Diversified:- Due to market volatility, the investment amounts suffer devaluation. The equity or long-term investments in specific are largely affected, resulting a fall in the values of the invested capital. Thus, we must make diversified investments by putting the funds in debts, equities, money-market instruments, government securities, etc. This ensures efficient utilisation of the monies in profitable avenues irrelevant of the market moves.
- Economic Events are Bound to Happen:- The economy faces a lot of ups and downs due to various factors. The government has the power to make amendments in the current financial or economic system in order to bring a better flow of money and to make the economy more stronger. Therefore, while taking the investment decision we have to keep one thing in mind that our investment should not get affected by any movement in the economy. Furthermore, if any certain activity affects the valuations of our investments, then we must wait for the right time and accurate moment to take the necessary step. Nothing should be done in a haphazard manner.
- Go Cashless:- After demonetisation, Indian citizens have learned a new way of transacting via digital means. Now, the need of cash has been reduced as various alternatives have been launched and brought in the market which ensure safe transfer of money and easy commercial transactions. The cashless society is getting promoted these days and this is the most efficient lesson of the the year 2016 which would help in making the Indian economy stronger and transparent. In the case of investing in mutual funds as well, you have the online payment alternative to make your investment hassle-free and easier.
Investment is required to be done with high degree of efficiency as it involves money matters. The past experiences help us in implementing better plans in the future. In the same way, these five investment lessons that we learnt in the year 2016 would definitely assist in making better investment decisions in the year 2017.
If you need any assistance or financial advisory services to park your money in productive avenues in the new year 2017, then you must avail our services which are available 24/7. MySIPonline is devotedly serving the investors’ needs with online services and solutions and you must take the best advantage of the investment market by taking help on the same.
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