National Stock Exchange – Bada Business

4 Ways To Reduce Risks & Make Good Financial Investment In The Market

Summary: Making investments in stocks and mutual funds is a great way of achieving your financial goals. But how to reduce risks when you are a beginner? Find it out.

The ongoing war between Russia and Ukraine has impacted the Bombay Stock Exchange and National Stock Exchange. Such volatility of the market may cause beginners to panic and slip away from the equity markets, vowing never to come back again.

Any investment big or small is subject to market risks. The thumb rule is to protect your principal amount. While the stock market involves risks and can`t be entirely predicted or avoided, one can protect the portfolio by being mindful, careful, and observant of market changes to minimize the investment risks. There are many online business courses for entrepreneurs to offer in-depth information on financial investment.

So apart from creating a diversified portfolio with quality stocks, you may also listen to the experts like Meghana V Malkan and Vishal B Malkan from April 1^st to April 3^rd, 2022 to learn how to make a mindful investment.

Here are four ways that will help you to reduce the risk while investing:

1. Keep Your Portfolio Diversified

What you do to your portfolio matters and when it comes to diversifying it, it can help in more than one way. Investing in more than one asset class will minimize the risk. Diversification means to spread out investments in different types of funds across various sectors and not stick to a particular theme or an idea.

While over-diversification means low-risk and low returns, a concentrated portfolio are a high risk-high return concept advisable to only those who are experts in the field. An investor`s job is to find the middle ground between over-diversification and concentration.

2. Buy Value & Buy Cheap

Would you invest in a property which is quite expensive or would you want to invest in a real estate property that is available at a cheaper price and have the chances of gaining momentum in the future?

The best thing about value investing is that it offers maximum margin safety. But the downside is that it offers limited growth, unlike the sectors that offer unlimited growth with high uncertainties. To find themes that are available at cheaper prices and experiencing temporary downturns but are expected to do well in the future. If you are just a beginner, you can take online courses for entrepreneurs to gain basic knowledge related to stock market.

3. Invest in SIPs

Systematic Investment Planning which is also known as SIP is a great investment plan for everyone. Hence, it is advisable to maintain a disciplined approach towards mutual fund SIPs no matter where the world is going as it can help in averaging out the NAVs at various levels.

4. Avoid Adding Stocks With the help of Margins

Avoid taking leverage and adding stocks with the help of margins. Pure cash investing is a slow and steady process to win the race.

Investing in stocks can be overwhelming especially for beginners. However, with the above-mentioned strategies, you can begin on a positive note. These strategies will help you to minimize risk while investing. To ensure that you make some good investments, you can either consult a financial advisor or you can take our problem solving courses that are aimed to offer extensive knowledge.

Are you looking to find solutions for your burning problems? Get practical solutions easily with our step-by-step learning strategies, action plan, frameworks that are designed to empower you with various business functions.

From finance to HR, Digital Marketing to IT & Sales, find creative solutions to prominent business problems easily through our problem solving courses. Click here to know how these courses will benefit you: https://www.badabusiness.com/psc

Having a compelling marketing idea is great. But you know what is even better? Personal guidance to increase your brand presence consistently to facilitate sales, engage your customers and close leads. You can join our business coaching program to learn from the experts.

SIDBI Collaborates with NSE to Develop Debt Capital Platform for Firms in MSME Sector

The micro, small and medium enterprises are blooming in the country with various government and non-government agencies undertaking several schemes and programmes to increase the investment flow for the firms in the sector. Massive inflow of funds has also helped the sector to stay afloat in even as major business industries suffered and incurred losses owing to the economic slowdown induced by the lockdown imposed to curtail the spread the coronavirus. The MSME sector frayed pretty well in the COVID-19 era as well.

There are various initiatives by public and private sector banks offer equity-based finance to the micro, small and medium enterprises. Even the non-banking financial institutions have extended schemes to support the firms in the MSME sector. However, the need to develop to additional debt and equity instruments to create more financial solvency and soundness in the sector. It is important for the overall development of the sector- capital intensive and labour incentive both. Startups and MSMEs in India Get Major Boost As Indian Bank Signs MoU With SID of IISc for Extending Exclusive Credit Facility to Businesses.

Recently, the National Stock Exchange (NSE) entered into an agreement with the Small Industries Development Bank of India (SIDBI) to explore the feasibility of a debt capital platform for the micro, small and medium enterprises. “Keeping in view the large and diversified MSME sector in the country, there is a continuous need for various institutions to co-ordinate and co-operate with each other for the benefit of MSME sector,” V Satya Venkata Rao, Deputy Managing Director of the Small Industries Development Bank of India told the reporters in this contest. MSMEs in Haryana Get Major Boost! Products Manufactured by MSMEs in the State To Get Global Market, Talented Artisans To Benefit.

Taking about the collaboration he said that both the institutions (NSE and SIDBI) run several programmes for the enterprises in the MSME sector, adding that the co-operation will help increase the impact and reach of these programmes. Rao also said that an expert committee on MSMEs, headed by U K Sinha, the former Chairman of Securities and Exchange Board of India (SEBI) has made several recommendations for the micro, small and medium enterprises, including the need to develop additional instruments for debt and equity, which will help crystallise new sources of funding for MSMEs.