Investors in the stock market should keep these 5 things in mind for good returns


New Delhi : Diwali is celebrated all over the world today. A new working year also begins today. If you are investing in the stock market, then today you can trade stocks at Muhurt Trading. To ensure that your investments bring you good returns throughout the year, you can implement some things into your life today. Today we will tell you 5 such things, if you take care of it, then your portfolio will never have problems.

Don’t risk more than you can
If investors do not pay attention to their portfolio for a long time, they put themselves at great risk. The risk profile of investments continues to change over time. If you look at mutual funds, they are constantly changing their powers and moving into other categories. They are not linked to the original risk profile. Even the National Pension Scheme (NPS) continues to change the rules of investment. In debt funds, it is important that any liquidity or credit impairments are taken into account. Therefore, you must notice any changes in the risk profile of your investments and take the right steps.

take advantage of profit opportunities
If you don’t check your portfolio from time to time and don’t take the right steps, chances are good that you will lose your profits. Determining the time to enter the market, pausing investments and resuming investments are steps that can hurt your portfolio. If you are investing in equity, it is better to have a target and a stop loss. This allows you to reduce the risk of your investments. An investor who sells at the top of a fresh market does not regret his decision when there is a downside risk. If the market moves to new highs, that investor can put money back into the market. It is the right decision to keep investing constantly in order to catch a bullish trend in the market.

Somewhere your profit does not go to tax
Exceeding tax liability on investment income is a common portfolio error. There are many people who do not pay attention to tax liability when choosing an investment option, and later, due to tax liability, their income remains very low. Whenever you choose an investment option, pay attention to the tax liability on the investment amount, interest income and repayment amount. We must choose the investment option with the lowest tax liability. There are also many smaller schemes where the investor has no tax liability. Such investment options have EEE status. That is, here investments, interest income and the amount of repayment are exempt from taxation in all three respects.
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why buy expensive things
Don’t ignore the costs associated with popular investment options. Traditional insurance plans have a high cost that eats into your premium in the early years. The cost of the premium for the first year can be 70 to 90 percent and eat up 15 to 20 percent at each renewal. In addition, these plans come with heavy repayment penalties, making early withdrawals costly for you. Compared to them, ULIP plans currently have a lower built-in cost.

Need to maintain liquidity
Liquidity should be given special attention in an investment portfolio. Investors care a lot about returns and security, but forget about liquidity. Your portfolio must have sufficient liquidity at all times. You never know when a financial disaster might hit you. The time of the pandemic reminds us that we must always have enough liquidity. That is, you should always have some amount in a place where you can withdraw it at any time without incurring any losses.


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