7 Investment Strategies for New Investors

Posted on Thursday, March 6th, 2025 | By IndusInd Bank

Investing your money in the right instruments and in the right manner can considerably help you grow your wealth. However, if you are a beginner, the investment world may feel overwhelming with its jargon and expert advice. Being well-aware of the basic strategies of the share market, mutual funds, and other options can make your investment journey smoother. 

So, if you are a new investor looking for guidance, here’s how to kick start your financial journey with simple yet effective investment strategies. 

Investment Strategies for Beginners

Whether you want to save for retirement, fund your child’s higher education, or simply live a financially secure life, with the right strategy, you can achieve your goals with ease. 

1. Financial Objectives

Before you start any investment or implement any share market strategy, you must understand the ‘why’ of your investment plan. List down the main financial objectives you plan to achieve with this investment. 

Also, get a clear idea of how much risk you are willing to take in the process. This will help you choose the right instrument as well: equity options if you prefer a ‘high risk, high reward’ approach, or a debt mutual fund if you want a ‘low risk, moderate rewards’ approach. 

2. Portfolio Diversification

A well-diversified portfolio is likely to provide stable, consistent returns over a long period as compared to one that isn’t. Diversification refers to the process of investing in different kinds of stocks/mutual funds with varying risks. For instance, a diverse portfolio will have investments in various risk-category options (equity/debt/ hybrid funds) and sectors (technology, healthcare, infrastructure, etc.).

So, even if one set of stocks, for instance, the healthcare sector, undergoes a major market fluctuation, the rest of the stocks will stay unbothered. 

3. Blue-Chip Stocks/Funds for Long-term Growth

One of the investment strategies for beginners is to opt for blue-chip stocks. For the uninitiated, blue-chip stocks refer to the shares of well-established companies. These generate stable, low-risk returns over the long term. Since these are well-established companies, the research required for the investment will be less. Once you have gained experience with these, you can move on to more complex investment options. 

4. Dividend-Yield Stocks/Funds for Potential Payouts

Another share investment strategy you can utilise is to invest in dividend-yield stocks or funds. A dividend-yield mutual fund will not directly provide dividends. Instead, they invest in those companies who have a history of providing dividends, which implies profitability.

So, not only are you earning returns on your funds, but you may also receive potential dividends at regular intervals. You can even reinvest the dividends to increase your returns. 

5. Buy-and-Hold

This share market strategy is as easy as its name suggests. Research the companies you wish to invest in, buy their stocks, and hold for as long as possible. Instead of being swayed by market fluctuations and selling in case of a market low, you must hold the stocks for an indefinite period. 

A major advantage of this strategy is that you do not have to monitor the market regularly, like a trader would do. You have ample time and energy on your hands for other pursuits. 

6. Rupee-Cost Averaging

This concept refers to the process of strictly investing a set amount at a regular interval, regardless of market ups and downs. This means you get a higher number of stocks/mutual fund units when the prices are low, and a lower number of stocks/units during high pricing. This averages out the price of the stock/unit in the long term.

If you want to implement this share investment strategy, consider setting up a Systematic Investment Plan (SIP).

7. Index Investing

An index fund is a set of stocks or other securities that tracks a particular index on the share market. The performance of the fund reflects the ups and downs of the index market. This means you do not need to track your funds, as they follow a similar pattern to the stocks in the index. Hence, they are an ideal option for a beginner. 

Also Read: How To Buy Mutual Funds Online & What to Consider before the Purchase?

Conclusion

Investing in mutual funds or the share market does not have to be overwhelming, even if you are a beginner. With the above share market tips and mutual fund strategies, you can set the right foundation for your investment journey. 

If mutual funds are your preferred investment option, IndusInd Bank can be the right partner for you. As a reputed mutual fund distributor, IndusInd Bank provides a host of mutual fund options for you to choose from and make investments with just a click. In addition, you have a transparent fee structure, risk assessment and profiling, and an easy tracking feature to ensure a hassle-free investment journey.

Start investing with IndusInd Bank now! 

Disclaimer: The information provided in this article is generic and for informational purposes only. It is not a substitute for specific advice in your circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information.