Millennials refer to those born around the turn of the millennium; at present they are between 20 and 35 years. These days most of the online Investment platform witnessing over 50% transactions are made by first-time investors.

You’ve probably been told that equity is the best wealth creator over the long term. But, if you’re new to the equity market, choosing a stock, or indeed a mutual fund scheme can be a daunting task.

Here are a few things to remember :

Start with low-risk investments:

You should pick low-risk schemes such as a liquid fund or Balanced Fund to get a positive first experience. Once you are comfortable and confident, introduce yourself to high-risk schemes such as equity fund or hybrid aggressive funds.

Define the Purpose :

One must decide upon the reason for investment, like Saving Taxes, Wealth Creation Or Financial Planning. This will help you to decide upon the investment horizon and amount of risk you can take. You can safeguard yourself from entering a wrong investment.

Give up bad financial habits :

You have easier access to credit cards and EMIs compared to the earlier generation. Don't spend money that you don't have. You will end up borrowing money at 36% from the banks.

Creat assets over experience or liabilities :

Have more focus on asset accumulation rather than spending money on lifestyle ( foreign vacation or buying a fancy bike). Maintain the right balance between short-term goals & long-term goals (Take help of financial advisor).

Keep the focus on asset allocation :

Many of you go by historical data and ended up investing in 100% equities. Important here is to understand your risk profile and cash flow requirement. Debt instruments are equally important for your portfolio.

Bottom line:

Managing your personal finances is not rocket science. People have been doing it for a very long period with success. But it is all a matter of trial and experience. Choosing the right financial advisor is crucial to the success of any financial plan. It is important to shop around for the right advisor. Look for someone who puts your interests first. A financial advisor can advise; it is eventually your decision to follow the given advice or not; after all, it is about your money!  

Investing is different from saving or trading. Generally investing is associated with putting money away for a long period of time rather than trading stocks on a more regular basis. Investing is riskier than saving money. Savings are sometimes guaranteed but investments are not.

Learning the fundamentals of investing is like learning a new language. Whether discussing stocks, bonds, and other investment vehicles to structures, fixed deposits. The good news is that once you have mastered the language and certain investing basics, you'll better understand how much of this works.

Let's look at the most common types of investments you will encounter: stocks, bonds, mutual funds, and real estate.

Stocks:

Stocks are a type of security that gives stockholders a share of ownership in a company. Stocks also are called “equities.” Without a doubt, owning stocks has been the best way historically to build wealth. Stocks are pretty simple: they're shares of ownership in a specific company. When you own a share of Infosys, for example, you own a tiny piece of that company.

Bonds:

Investing in Bonds has been considered one of the safest ways to make money. A bond is fixed-income security offered by governments and businesses. You lend them money for a set time period and at a fixed interest rate. A bond normally pays back your money plus the interest at the end of the lending period, the maturity date. Bonds and other fixed-income securities have a range of interest rates and risk levels. Many investors use an investment advisor to help them decide which bonds to buy and when to sell.

Mutual Funds:

Mutual funds are baskets of stocks or bonds. They come in all different shapes and sizes, from covering broad stock market indexes to focusing on specific sectors. One of the most popular ways to own stocks and bonds is through mutual funds. Mutual funds offer many benefits to investors, particularly to beginners who are just mastering investing basics. They're pretty easy to understand and allow you to diversify your investments over more companies.

Real Estate:

The world is full of people who are convinced that real estate is the only investment that makes sense. Whether you subscribe to that philosophy or not, there are more ways than ever to add real estate to your portfolio. Yes, you can buy a home for yourself, or properties to rent. There can be a high barrier to entry as the property is expensive.

Investing in a Bad Economy :

It's the nature of the world that sometimes bad things happen. When they happen to your investments or savings, you don't need to panic. Sometimes, you need to take a hit before you can make some money again, and holding on until the recession ends is the best plan.