Personal Finance: Simple rules of investing

The smart money techniques are not complicated ones, rather easier than imagined. So, here are some of the handy tips to get ahead in your personal financial lives through adopting simple investment techniques.

Feb 25, 2015 06:02 IST India Infoline News Service

If managing personal finance appears as a herculean task that is supposed to eat a day long for one, then the assumption is wrong. The smart money techniques are not complicated ones, rather easier than imagined. So, here are some of the handy tips to get ahead in your personal financial lives through adopting simple investment techniques.
 
Forget the Expert: Do not pay heed to what analysts or markets guru are recommending about a stock or mutual fund. It is seen that the stocks not recommended or randomly picked perform fair over those that were suggested by the market experts.
 
Invest globally: Mutual Funds are great diversification tools while they also open an opportunity to invest globally. An individual investor does not have options to park some part of his savings outside the country in order to take advantage of other emerging markets. But, mutual funds that target other countries are simple route to diversifying across economies.
 
No Fast Rich Schemes: Any investment scheme that promises quick money is not really a good deal. There are higher chances to burn cash in there instead of earning some.
 
Complicated Strategies: There are hundreds and thousands of websites that offer strategies to get an advantage in the stock market. One should keep a distance from such advertised strategies as they are way of money making for advertisers and salesmen and not an investor.
 
Financial Forecasts: The forecasts and ratings by analysts do not really matter to a person's long-term financial goal. A change in rating should not keep an investor from investing. Also, most of the forecasters failed to predict 2008 financial crisis, hence, why believe a projection that is not realistic.
 
Employer's Stock: Carefully consider before putting in money in your employer's stock. These investments often attract high taxes and have a maturity to vest. Therefore, review such options before deciding about the investment.

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