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.
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Do what is comfortable for you! But my suggestion to anyone early into investing is index. Just index and learn, until diversification makes sense.
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.
When your capital is less,
- you should aim to increase your income
- Figuring out your skill that you would obsess over your lifetime
- Double down and increase your income.
The problem with stock trading at early age or with less capital is that
- The profits you make aren’t life changing
- 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.