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Investment advice for millennials – Economic Times

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Parents and elder relatives constantly pester Millennials to save more. However, taking out money for investments is not easy when societal criticism and peer pressure trap you to spend more than you save for tomorrow. But, this is the ideal age to start planning for finances and, therefore, investing more diligently. When talking about investments, mutual funds are definitely the best option even for beginners. Mutual funds offer an opportunity for a diversified portfolio, liquidity and low costs.

Whether one wants to save for a short-term or a long-term goal, mutual funds can accomplish both. With the comfort of investment one can start with a tiny amount also. However, how to get the best returns is a big question for millennials. Millennial investors can follow the following strategies to make the most of their investment.

1. Why choose Mutual Funds?

The time is right for accumulating more to your investment portfolio. Some investment selections are safe and have a potential to give good returns in the future. Mutual fund invests in firms with better track records with the objective to provide capital appreciation in long run. The high return vs. high risk strategy could be suitable for millennial/young investors.

2. Keep Investing when the Market Appears Hard

Keep your Systematic Investment Plans (SIPs) running and do not worry about the functioning part of mutual funds. Mutual funds are one of the finest investment choices one can make regardless of market conditions. Redeeming your investments due to huge market volatility is not a good decision as continuing SIPs will help you balance your average cost of investments and will reap you benefits of averaging over a long term duration. So, keep investing even if the market corrects and top up your investment in SIPs.

3. Stay Safe from Redemption Burden

There have been several market falls in the past but there is always a recovery post the fall. So, it is of significant importance to keep emotions aside and stay calm and not redeem your investments in fear and anxiety. It is also essential not to go overboard with investing. Ups and downs of the market are part of the investment journey and as an investor, you must refrain from panic actions.

4. Review Periodically

Ensure that you take the periodic review of your portfolio and your financial goals to alter your portfolio according to changes in the market, risk appetite, your age and goals. When the market is volatile, you may need to alter your investments based on your risk appetite and market conditions. This keeps your funds active as per the current market circumstances which adds to a decent return to your overall portfolio throughout the entire investment tenure.

5. Diversify Your Investment

A diversified portfolio holding multiple asset classes is the best way to make optimum risk-adjusted returns from various asset classes. Although it is true that asset allocation and funds selection depends entirely on investment horizon, financial goals, and risk appetite; it is also essential to avoid investing in several funds as it might not be possible to track their performances.

The best investment advice for millennials is to start investing in mutual funds and enjoy the benefits of long term investing and compounding.

Views are personal: The author Pankaj Ladha is a mutual fund distributor from Kota.

Disclaimer: The views expressed are of the author and are personal. TAMPL may or may not subscribe to the same. The views expressed in this article are in no way trying to predict the markets or to time them. The views expressed are for information purpose only and do not construe to be any investment, legal or taxation advice. Any action taken by you on the basis of the information contained herein is your responsibility alone and Tata Asset Management Pvt. Ltd. will not be liable in any manner for the consequences of such action taken by you.


Mutual Fund investments are subject to market risks, read all scheme related documents carefully

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Tesla shares soar more than 14% as Trump win is seen boosting Elon Musk’s electric vehicle company

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NEW YORK (AP) — Shares of Tesla soared Wednesday as investors bet that the electric vehicle maker and its CEO Elon Musk will benefit from Donald Trump’s return to the White House.

Tesla stands to make significant gains under a Trump administration with the threat of diminished subsidies for alternative energy and electric vehicles doing the most harm to smaller competitors. Trump’s plans for extensive tariffs on Chinese imports make it less likely that Chinese EVs will be sold in bulk in the U.S. anytime soon.

“Tesla has the scale and scope that is unmatched,” said Wedbush analyst Dan Ives, in a note to investors. “This dynamic could give Musk and Tesla a clear competitive advantage in a non-EV subsidy environment, coupled by likely higher China tariffs that would continue to push away cheaper Chinese EV players.”

Tesla shares jumped 14.8% Wednesday while shares of rival electric vehicle makers tumbled. Nio, based in Shanghai, fell 5.3%. Shares of electric truck maker Rivian dropped 8.3% and Lucid Group fell 5.3%.

Tesla dominates sales of electric vehicles in the U.S, with 48.9% in market share through the middle of 2024, according to the U.S. Energy Information Administration.

Subsidies for clean energy are part of the Inflation Reduction Act, signed into law by President Joe Biden in 2022. It included tax credits for manufacturing, along with tax credits for consumers of electric vehicles.

Musk was one of Trump’s biggest donors, spending at least $119 million mobilizing Trump’s supporters to back the Republican nominee. He also pledged to give away $1 million a day to voters signing a petition for his political action committee.

In some ways, it has been a rocky year for Tesla, with sales and profit declining through the first half of the year. Profit did rise 17.3% in the third quarter.

The U.S. opened an investigation into the company’s “Full Self-Driving” system after reports of crashes in low-visibility conditions, including one that killed a pedestrian. The investigation covers roughly 2.4 million Teslas from the 2016 through 2024 model years.

And investors sent company shares tumbling last month after Tesla unveiled its long-awaited robotaxi at a Hollywood studio Thursday night, seeing not much progress at Tesla on autonomous vehicles while other companies have been making notable progress.

Tesla began selling the software, which is called “Full Self-Driving,” nine years ago. But there are doubts about its reliability.

The stock is now showing a 16.1% gain for the year after rising the past two days.

The Canadian Press. All rights reserved.

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S&P/TSX composite up more than 100 points, U.S. stock markets mixed

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TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.

The S&P/TSX composite index was up 103.40 points at 24,542.48.

In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.

The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.

The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.

The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.

This report by The Canadian Press was first published Oct. 16, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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S&P/TSX up more than 200 points, U.S. markets also higher

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TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.

The S&P/TSX composite index was up 205.86 points at 24,508.12.

In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.

The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.

The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.

The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.

This report by The Canadian Press was first published Oct. 11, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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