If you have just got a new job and now you want to do financial planning, then you should understand some things well before investing anywhere. If you do this, then you will be able to achieve your financial goals easily and will not be easily defeated in terms of profit. Here are those 10 Golden Rules that First Time Investors should always remember.

Understand your financial goals.

First of all, decide for what purpose you are investing like buying a house, children's education, retirement planning, or saving for any big expense, etc. After understanding your goal, divide it into short-term and long-term, then choose an option for investment accordingly.

Make a budget and start saving.

Before investing, make sure whether your daily needs and emergency funds are covered or not. Save some amount every month as savings and invest it. The financial rule says that every person should save 20% of his income and invest it.

Evaluate your risk tolerance.
Every investment has some risk. Understand your risk tolerance and invest accordingly. If you do not want to take much risk, invest in fixed deposits or bonds. If you want good returns in the long term, invest in mutual funds or the stock market.

Start early
The sooner you start investing, the more you will be able to benefit and make a lot of money. Nowadays, most schemes offer the benefit of compounding. To take full advantage of compounding interest, invest in long-term schemes. This will help you create wealth easily.

Diversify your portfolio
There is a saying that all eggs should never be kept in one basket. The same rule applies in the case of investment as well. Investing in just one place can be risky. Therefore, divide your investments into different asset classes like gold, mutual funds, stock market, FD, and other government schemes.

Invest long term
If you are investing in market-linked schemes like mutual funds, then make long-term goals. Do not be afraid of market fluctuations in the short term. In the long run, you will get the benefit of rupee cost averaging in this scheme and will be able to add a big fund with the help of compounding.

Invest regularly
Do not stop at investing a lump sum amount. Investing a little every month is the best way. You can start investing with a small amount through a Systematic Investment Plan (SIP) and can also increase your investment as your income increases.

Invest in the right information.
Do not invest without research. Understand any scheme or investment option thoroughly and know its advantages and disadvantages, then take any decision. If you have any kind of confusion, then take advice from a financial expert.

Control your emotions

Do not act emotionally in matters of investment. Do not stop investing due to fear of market fluctuations and do not make wrong decisions due to excessive greed. Do not invest money by seeing or hearing someone. First, get information or take advice from an expert, then invest in the market.

Do tax planning

Along with investment, also take care of tax savings. Make options like PPF, ELSS, NPS, and tax-saving fixed deposits a part of your portfolio.

Disclaimer: This content has been sourced and edited from ZEE Business Hindi. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.