Investing is probably the most important activity you take up after started earning. Hence, plan ahead and start thinking well before the time. Investing is the best approaches to maximize your fortunes and hold your money.

However, do you want the investments, that works for you? But there is something which holds you back. Wondering as to what it is?

Initially, locking your money for a fixed period and no guarantee of coming back your hard-earned money. How to overcome such a situation? First, pat on your back as you have landed upon this article to unravel the tips and take a wise decision.

Before dwelling into tactics understand about possible investment vehicles listed below

A new phenomenon which is prevailing in the market now is Peer-to-peer or P2P investments. This is the form where you lend loan to others who are unable to get it from a bank and earn on the interests.

Another option is to buy and own property either a duplex or an apartment. Benefit it by earning rentals and at the same time getting appreciation from the property.

Invest in a liquid asset that has tangible inflation hedge. The option of buying gold and storing it. It has long-term value and the best competitor for stocks. Buying gold bullion like bars, coins and any other physical form all falls under this umbrella term.

Portfolio investments are one more type of investments. These are passive investments in the form of equities, common stocks, debt securities, bonds, debentures, banknotes and more.

Explore the world of opportunities. One of the sources where you can look is by downloading spaceshipinvest app.

After understanding the kind of investments let’s dive into the ocean of tips and see how you can benefit from it.

Plan ahead about your investments

It’s always a worth decision allocating time to think regarding your wants and needs from your valuable investments. Anything is absolute if you manage your money in an appropriate way. Estimating your goals and needs and filling your appetite for risk is always a good beginning. Consider the following reasons before jumping into a proper investment structure.

    • Checking the budget including the household expenses
    • Take a loan which doesn’t cross 40% of your take-home salary
    • Even before you start your planning, take into regards all your existing assets and health insurance and expenses
  • Keep aside some amount as an emergency fund. Without this, your long-term goals may end up in futile

Do you want to earn higher returns in the long run? Of course, an answer would be yes. Proper planning helps in governing your investments for the future.

To dig further into thought-provoking action know that there are various plans depending on your commitment levels

    • Medium-term like investing on bonds, debentures, shares and other assets. You can always mix this up and carefully select
  • Long-term. The locking period will generally be for 20-30 years

Taking time and other factors into account, you can opt for more higher returns with more riskier funds. The time in your hands has a bigger impact on the investment decisions you take.


The primary rule for venturing out the assets is to improvise the possibilities for better returns by accepting risks. One way you can balance both risks and returns are spreading your income on different investment sectors and plans where the prices don’t differ much. This is called diversifying your portfolios. In other words, instead of dropping the eggs in one single basket, put it in multiple baskets. Many prudent investors follow this strategy and gain more.

For instance, these investors purchase stocks from different companies in different countries and sometimes in different industries with a motto that a single mistake does not affect all other holdings or affect them in different degrees. You certainly need to revamp and adjust your portfolios when it is necessary.

You can reap the following advantages by diversifying your asset classes

    • Decreasing the risk of loss
    • By preserving the capital safeguard your savings
  • Generating returns at the end of the locking period

Don’t emphasize more on the P/E ratio

Investors often magnify the P/E ratio- Price-earning ratio. It is a myth to rely on this ratio as it provides

    • Profits
    • Increased growth of the enterprises
    • Proper quality of management on portfolios
  • Higher returns and return on capital

Overemphasizing only on a single metric is always ill-adviced. Remember a low P/E ratio doesn’t mean the company is undervalued or a high P/E ratio is overvalued. Hence, there is certainly a risk involved in taking the decision depending solely on this ratio. There are other equally important financial ratios like

    • Price-cash flow
    • PEG ratio
    • Return on equity
    • Interest coverage
  • Current ratio

Be Open-Minded

Many great companies hold better household names, at the same time many better performing investments lack in terms of brand. Based on this phantom many investors have destined guidelines that they implement while making investment decisions. Some are broad and others are precise. Being on the list of many good investors is to understand these principles. Your preferred investment vehicle doesn’t yield better returns. In fact, this is not meant to be saying they become worse. Rather there are few possibilities that presently outshine it.

There are many possible reasons in the movement of stocks

    • Speculations
    • Rumours
    • Hopes and
  • Emotions

Just think! why invest in stocks which give 15% when you could yield 25% elsewhere.

People who are refusing to adopt stocks may give larger gains. This is not to intend, put all your investments into small-cap stocks. There are many big companies beyond those listed in DJIA. Hence control your emotions and take logical decisions.

Review periodically

When one speaks about investments especially in the long-term horizon, it doesn’t mean only invest and forget about them. Though basically, it is fund managers role, investors also need to look into the performance of the portfolios. Annually reviewing your stocks is a must for better gains and reach your goal. Analyzing the stocks will say, whether they are meeting your plan or not and if any corrective measures need to be taken. Most of the companies release regular statements to help you. There are obvious reasons for reviewing your investments periodically

When you equate your investment portfolio in line with the personal goals, then it indicates you are in a better position to reach your goals.

Monitoring your portfolios aids in identifying and weeding out all the non-performing assets. You can easily gauge which investment is working properly and which is not. If needed, you can even take corrective measures.

By evaluating your portfolios regularly can make you fix minor mistakes.

Governmental policies, business and economic environment play an essential role in performance. Any modification may tend an investor to re-align his portfolios to optimize his returns.

A caution of note: Studies prove that, if you’re an investor who watches your investments daily, there may be chances of buying or selling too often and get poor returns.


By continuously committing yourself and pushing towards investments can reach heights. It is always a game of plan backed by making smart decisions. Follow the above few tips when you are planning to take that initial steps. Investing is not just merely investing yourself. Be informed and make a real move to accomplish all your dreams and financial goals. Understand the above tips and make a smart move for a better future.