Tips for successful long-term investing

Aug 8, 2022

How to be successful long-term investing

Investment is a wise man’s solution to building wealth in the long run. Just saving up your money is not enough in today’s world. Investing can help you increase your monetary value. Simply put, investment of any form requires you to buy an item or asset from which you can reap benefits after a time. Long-term investment options not only help you save money but also help you get great returns.

Stocks, mutual funds, peer to peer lending investments, etc. all provide great investment opportunities in India. Depending on the amount you are willing to invest and the timeline of your investment, you can pick and choose from the many options available on the market. If you are looking to make long-term investments, here are some tips that can be useful for you:

Things to keep in mind for successful long-term investment

  • Start investing as early as you can

There is no alternative to jumping right into investing as soon as possible. As they say, the early bird gets the worm. When it comes to investment, you must be prudent from the get-go. It helps you build an appetite for risk and understand the market better. Any long-term investment requires patience and investing early gives you time to adjust to the concept.

Further, investment opportunities can give a better return when there is a sufficient compounding effect. Compounding essentially means giving enough time for your initial investment corpus to build so that the gains earned on the base amount can be re-invested for more gains. The longer time your investment gets, the better the compounding effect. LenDenClub helps you invest at your convenience. The compounding effect is embedded by default in their investment options and you can build a good investment portfolio from an early age.

  • Figure out your financial goals

It is important to plan well before taking the investment plunge. Decide early on if you want an investment with monthly returns or want to invest with an extended lock-in period. Ask yourself the following questions: Are there any important financial commitments that you have in the next five years? Do you need a regular return on your investments? Accordingly, divide your monetary influx into savings and investment categories.

Once you have your investment fund set aside and clear expectations regarding its return, you can zero in on the types of investment you want to make. For instance, at LenDenClub, you can invest up toinvest up to 50 lakh and get returns of up to 10 to 12% p.a.*., making it profitable for you.

  • Always look to diversify your portfolio

The golden rule of investing is to keep diversifying. Pooling all your money in a single mode of investment can make you vulnerable to risks. Hence, you must optimize your portfolio by bringing in the right mix of short and long-term investment products.

Ideally, you should look at a combination of stocks, gold, mutual funds, and bonds for diversification. Further, you should also look at various non-market linked investment options such as P2P lending. These alternative investment asset classes allow you to weather the volatility in your portfolio and generate optimum returns. LenDenClub, one of the largest P2P lending platforms in India, lets you invest your money in these options for longer time frames.

  • Avoid focusing on short-term market fluctuations

It is easy to be swayed by market noises. But do not give in to every advice you hear. Markets are meant to fluctuate. There is no need to be alarmed. In such situations, look at the bigger picture and focus on investing in investment opportunities that are designed to survive short-term market fluctuations.

It is always advisable to consult a financial advisor rather than acting on background noise. With LenDenClub, you do not have to worry about short-term dips in the market. Thanks to investment flexibility and returns after a fixed number of years, your investment will be much less volatile.

  • Look at investment opportunities with long-term returns

While it is convenient to go for investment with monthly returns, you should always put in a amount of your money in long-term return options. Schemes like the National Pension Scheme (NPS) and the Public Provident Fund (PPF) are specifically designed for this purpose.

The in-built lock-in period of these funds does not allow you to withdraw the money before a period, helping in forced savings as well as good returns. But, if you have some medium-term goals in mind, you can choose to invest in P2P lending too that allows you to invest up to 5 years, and your money gets withdrawn at maturity, allowing you to reach your goals with stability.

  • Always revisit your investment periodically

Revisiting your investment portfolio at regular intervals is instrumental to your success. This review helps you to analyze the current returns being offered by the investment options and any upward or downward trends in the market. Accordingly, you can adjust your investment ratio in the different segments. You can switch from a non-performing investment with monthly returns to a better long-term investment product, thus making your portfolio more profitable. Ideally, you should review your investments once every year.

  • Keep an open mind about new investment opportunities

When it comes to successful investing, it is imperative to keep an open mind. There are lots of profitable investment opportunities in India that may not have as much popularity as the big names. Investing in these companies can help you rake in considerable profits in the years to come. LenDenClub is one such remarkable peer-to-peer lending platform that you can consider as your go-to alternate investment scheme.

Why should you invest in LenDenClub?

Now that you are all geared up to invest your money for long-term benefits, LenDenClub should be your one-stop solution. It is India’s most trusted peer-to-peer lending arena with over 2 million registered investors. By investing in this direct lending scheme, your risk quotient goes down and your portfolio is diversified for better returns.  a consistent portfolio, averaging between 10 to 12% p.a. since 2017, LenDenClub is one of the best P2P lending platforms that offers good investment propositions.

In today’s fast-paced market, investing in new-age products with an exciting return opportunity is to bring you positive results. So what are you waiting for? Start your investment journey today. Choose LenDenClub as your next investment opportunity and secure your wealth for years to come.

On top of that, online marketplaces like LenDenClub further simplify the process for investors. Let us see how –

  • A family of more than 2 million people
  • AI-powered Auto investment
  • Allows diversification and reduces risk
  • Screens borrower’s profile through 200+ data points to reduce the risk of default.
  • Provides returns up to 12%* p.a.
  • Market-risk free returns
  • Safe and Secure transactions using the ESCROW mechanism.

Hop on the bandwagon with 2 million+ investors. Register now!

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