Don't worry about jargon or about understanding everything at first, but be sure to start investing early, advises Dhirendra Kumar
What resources should someone who has never invested before to follow to get an understanding of investing? How can one understand the market jargon and what are the pitfalls that one should avoid, especially in this volatile time?
Markets are always volatile and you may never come across a situation when they are not volatile. Investing is more about not doing many things than doing things. You have to do very few things. Do not chase recent performance or invest in something that you do not understand.
Understand your requirements before investing. While investing, the primary thing to understand is the time horizon - how long you can invest that money. Then only you can invest in the right avenue. And if your time horizon is five years or more, then only you can think of investing in equities. Keep visiting Value Research Online and read the stuff to learn more.
And there is not much of a need to understand complicated jargons. Most of the financial terms like profit, profit after tax, are self-explanatory. And you can always search Google for their definitions or expressions. But as we are learning about all these, another thing that is important for you to know is the importance of starting early and starting now.
If you haven't started investing and have a horizon of five years or more, pick up a good aggressive hybrid fund and start investing now. Continue to learn simultaneously. By investing in it, you will gain more interest and experience, which will help you learn. Also, starting early is very important. It can do wonders in the long term.