A six-step beginner's guide to equity investing

Simply replicating your friend's portfolio is never a good idea

- VARUN FATEHPURIA

RETAIL PARTICIPATION IN the capital markets, either through direct equity investing or mutual funds, boomed during the last 24 months. This was partly due to the growing free time but majorly due to the transactional ease made possible by do-it-yourself apps.

This, however, ended up as a double-edged sword. While the Covidinduced bull market helped bring a whole new set of investors, it also created a wrong set of expectations in these investors' minds. It was not uncommon to see people act solely based on what they heard from their friends and relatives. Or, worse, invest based on the 'expert tips and reviews' circulated vehemently on social media. And the two-year-long bull market only helped reinforce these wrong ways of investing.

Investing is a disciplined process that requires dedicated time, knowledge and resources to do it right. Here is how you should approach it: