How first time equity investors can get started
It is better to invest in a portfolio of dividend paying stocks.
You are below 40, married, maybe have a child. You have a stable job. Your income is quite sufficient to take care of your EMI and still have significant surplus cash flows. The surplus money keeps lying in your salary account. Once in a while you get around to it and make an online fixed deposit. Your banker keeps trying to sell you insurance plans. Of course, not the term plans, though. However, you know better and somehow have been able to fob him off until now. He will definitely get to you some day; but that doesn’t concern us right now.
You have consulted a financial planner and have been advised to allocate somewhere between 50% to 70% to equities from your existing fixed deposit allocations. You agree with this advise and want to implement it. The planner has risk profiled you and told you that your risk capacity is high. This means that your age, job, liabilities, financial and family situation allows you to take large risks. But your risk appetite is low. Your willingness to accept risk is low. You can take a lot of risk but are not willing to take it. You also agree with the financial planner that you need to take the risk to reach your future financial goals. However, you do not feel comfortable doing it.