2023 Resolutions for your Investment Portfolio
By Ninie Verma, Content Associate, 1stCheque by Favcy
- From taking the scary first step to building an investment strategy that makes sure your portfolio has winning horses.
- Here are New Year resolutions you need to have for your startup investing portfolio.
Top New Year Resolution: Start angel investing!💡
Every New Year we obsessively jot down goals for ourselves - get fit, climb metaphorical Everests and achieve things we couldn't in the past year.
Don't you think your investment portfolio deserves the same TLC?
There are certain habits that every highly successful angel investor has inculcated within themselves (Read: The 7 Habits of Highly Successful Angels). We think setting up solid New Year Resolutions for your investment portfolio could become the 8th habit every successful angel needs to develop!
The catch remains that even if you manage to accomplish 40% of these (like most New Year resolutions), your portfolio will still be way strategically developed than 65% angel investors. I'd say that's a win win!
Here are 5 New Year resolutions you need to make for your portfolio:
1. Setting Achievable 3, 5 and 10 Year Goals
Sounds overwhelming? Hear us out.
One of the most important things an investor or an individual can do to be financially healthy is to create a financial plan and set up goals. Having a sound financial plan can not only help you make decent investment decisions but can also help in budgeting and saving more money.
This means that if you sit and pen down an overview of where you want your investment portfolio to be in the next 3 to 5 years, it will proactively guide you to judge investment opportunities keeping in mind your 5 year goal.
Start off with a 3 year plan. Kickstart your 2023 with one investment that contributes to your 3 year plan and you'd be off to a good start.
2. Research. Research. Research. Every investment opportunity.
Whether you're just starting off or have been in the game for a while, you need to know the importance of research.
If you don't expand your horizons, you miss out on exciting opportunities. As an investor, spending quality time researching investment opportunities is very important. Read up about new and rising sectors. Find a startup interesting? Research the sector and other market players thoroughly. The more you educate yourself about the ecosystem, the better you'll get at spotting stellar opportunities from a mile away.
3. Nothing wrong with being a jack of all trades. Upskill yourself
A person can never stop learning. This statement falls true for investors as well who are experimenting with a variety of asset classes. With changing market dynamics, you need to change and grow along with it. Investors need to keep learning more about technical analysis and investing strategies.
4. Develop a Code Red. Follow proper risk management
One of the keys to being a successful investor is to manage your risk efficiently. Any investor should adhere to solid risk management principles, no matter how big or small the capital is. Know your risk appetite. Diversify your portfolio. Risk calculation and management will help you achieve your long-term goals faster.
5. Avoid FOMO
Many investors often feel the fear of missing out, widely known as FOMO, which affects their investment decisions. You might see your peers, friends or relatives getting significant returns from an investment. Instead, develop JOMO. Curious what it is? Watch seasoned angel C.S Kupperi's interesting take on FOMO that we think every investor needs to master.
And lastly, while it doesn't need to be a resolution, remember to have fun while startup investing! Some of the most active and successful angels we've met are active and happy for the sole reason that they're immensely passionate about what they're helping build! What you do needs to bring you joy, not just amazing returns!
Happy New Year, folks!