All you need to know about DIY investing

Thanks to easy accessibility to information on the internet, the do-it-yourself (DIY) trend has gained a lot of traction in the last few years. From origami, home renovations, and pottery, DIY has now also seeped into the world of investing. The DIY investing method allows you to build and manage your own portfolio without intervention or guidance from a professional financial advisor. Find out how it works and what you need to do to generate wealth through it. 

How does DIY investing work?

DIY investing is also known as self-directed investing. Under this style, investors rely on their own experience and acumen to select suitable investment options for themselves. With online platforms and brokerage accounts available on the internet at nominal cost, DIY investing can help investors take control of their funds and manage their portfolios on their own. 

How can you succeed with a DIY investing model?

DIY investing may seem a bit overwhelming as you have to rely on your judgement. There is no one to help you or take decisions on your behalf. However, such an approach can be a success as long as you stay focused and follow the tips given below:

Plan well

Planning is the first step to success in any field. So, think about your financial needs, income, and expenses before you start. This will help you determine the amount of money you can invest comfortably. Once you have this in place, you can go ahead and start looking for appropriate investment options. 

Identify ‘money buckets’

In the next step, identify your goals. Ask yourself what is it that you need the money for. Are you saving up for retirement or for a child’s higher education? You could also be saving for short-term needs like upcoming household expenses or security money for an emergency. Identifying the motive for investing will help you understand the time horizon required for each goal. 


Now that you have a clear picture of your goals and know how much money you can invest to achieve them, it is time to strategise. Pick financial tools depending on your investment capacity, risk appetite, and time horizon. For instance, long-term savings can be covered with equities, mutual funds, bonds, etc. Liquids funds can be suitable for short-term emergency savings. 

Set up an account

The only tool required for DIY investing is an online platform or account. Look for a secure and seamless account that lets you invest in multiple investment options such as mutual funds, direct equities, exchange traded funds, etc., for the sake of convenience. It is also important to pick a reliable and trustworthy platform to avoid theft and fraud, and enjoy complete transparency and safety. 

The HDFC Bank Demat Account fits all of these boxes with the following features and benefits:

  • Paperless account opening process in five minutes with no documentation or signature

  • You get a ready-to-trade demat account for immediate investing

  • Use one account for several types of investments such as equity, mutual funds, Exchange Traded Funds (ETFs), Initial Public Offerings (IPOs), sovereign gold bonds (SGBs), and Non-Convertible Debentures (NCDs)

  • Easy dematerialisation of your physical securities

  • Ability to redeem investments to your HDFC bank account

  • Possibility of taking a digital loan against securities or mutual funds 

  • Option to freeze securities in your demat account or the account as a whole for a certain period if you wish to discontinue investing 

Read more on how you can invest in the current times with your Demat Account.

Keep reading and learning

The only way to succeed with DIY investing is by keeping yourself up to date. Remember, since you do not have the option to consult an expert, you have to be sure of every decision you make. This assurance can only come if you keep learning. Read financial journals, newspapers, blogs, etc. and talk to your peers to know what is happening around you, so you can take advantage of opportunities at the right time. 

To sum up, if you wish to take charge of your money and financial growth, DIY investing can be the right style for you. However, it is important to plan and strategise well to lower the possibility of losses. 

Explore HDFC Bank and apply for our Demat Account facilities by clicking right here.

*Terms and conditions apply. This is an information communication from HDFC bank and should not be considered as a suggestion for investment. Investments in securities market are subject to market risks, read all the related documents carefully before investing.