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MagicalUnicorn
MagicalUnicorn
GenWise

Reached a new milestone 🐛

I have been investing for almost 2 years now and have successfully saved >₹10L. 50% is in straight up equity, 25% in MF (equity) and 15% is in gold (bonds and tablets) and the rest is Liquid Cash.

I don't know the way forward now, do I keep doing the same thing? Do I diversify? I have also started to invest in US Markets.

4mo ago
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SparklyCupcake
SparklyCupcake
Stealth4mo

Do what is comfortable for you! But my suggestion to anyone early into investing is index. Just index and learn, until diversification makes sense.

MagicalUnicorn
MagicalUnicorn
GenWise4mo

The thing is I haven't believed in Index funds since the start, my beta has always been higher than index. I believe in the Goodwill of the company, if it's good, I am investing in it. Small investments in this market in small cap companies have given me 150+% return on average, but the investments were so small that the overall portfolio is still ~50% profit.

SparklyCupcake
SparklyCupcake
Stealth4mo

When your capital is less,

  1. you should aim to increase your income
  2. Figuring out your skill that you would obsess over your lifetime
  3. Double down and increase your income.

The problem with stock trading at early age or with less capital is that

  1. The profits you make aren’t life changing
  2. The amount of time you spend on evaluating stocks could be better utilised to learn a skill which can give outsized outcomes

Hence invest in index funds, spend time on other skills which can help you.

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