To start with, for creating your winning portfolio basket, the first steps is Know your Investment Criteria i.e. your need analysis
The very first thing you should ask yourself why you want to invest, the motto behind your investment decision. Your criteria could be based on:
- Growth / Capital appreciation
- Safety / Capital protection
- Regular income generation
- Want to save Tax u/s 80C
- High post-tax return
- Liquidity needs as & when required
- Beat Inflation
- or any specific criteria/objective
This is a very important step that creates a base for your further investment process. Unfortunately, most of the investors are not clear or vague about their own investment needs and therefore take the decision purely on the market/scheme performance.
You as an investor must understand your own need & cash flow requirements. Define it clearly as it plays a very important role in finalizing scheme selection. Once you have chosen one or more than one criteria, then go to the next Step 2. (read next blog)
Do need analysis first!
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