What Do You Need To Know Before You Begin Investing?
August 29, 2019
Before you begin investing, know what documents you will need, how to pick a financial advisor, and some basic terminology
Every investor needs to do somegroundwork before they begin the process of investing. There are detailed descriptions of each of the following in other articles. Make sure you are as informed as possible about these.
Documents: It is important to become “KYC compliant”. Similar to what you do with banks, submit a copy of your PAN, Aadhaar, a photo, and details of your income sources. You can begin investing after completing the KYC process. The good thing is, everything else is pretty much paperless! If you invest with Wealth Central, you can do all your transactions on this very website!
Financial Advisor: Pick the right advisor – someone who is very credible, has the time to periodically update you on your investments and to constantly monitor them, and who is very knowledgeable on different industries and functions. An advisor is a life-long relationship and not a one-investment stand!
Once you have the basics in place, mutual funds are well regulated and so are very easy to invest in. Also educate yourself on different investment methodologies – such as SIP, STP, Lumpsum investments – and on common industry terminology such as NAV and Benchmarks. Once you have that in place, you are good to go!
