The volatility in the stock markets due to the rising COVID-19 infections is weighing on investors’ sentiment. The rising uncertainty over the possible curbs and lockdown has sent benchmark equity indices sharply lower, which has resulted in heavy sell-off recently. But, experts have always reiterated that equities benefit investors in the long-term and stock markets are very risky if you’re looking at short-term gains.
Rachana Ranade, YouTuber & Chartered Accountant suggests first time investors to take the SIP route and recommends index funds. With a systematic investment plan (SIP), you can start your investment with as low as Rs 500 per month, if you can’t spare a higher amount, says Ranade.
She further advises investors to stay away from chit funds & committees. In the absence of a regulator, redressal is difficult. Investors should always invest in products that they have knowledge about and in the presence of a regulator they can complain if anything goes wrong, Ranade added.
She also cautions investors against taking unsolicited tips from peers since markets are highly volatile.
With 2.2 million subscribers on youtube Ranade’s ‘Basics of stock market’ video is viral on social media. ‘Cost per use’ is one financial tip that she stands by. To put it into perspective, Ranade explains- before buying anything, calculate the times it will be used. If you’re buying something expensive and will only use it 2-3 times then it’s best for you to rent it instead of buying.
Here’s the full conversation with CA Rachana Ranade
