Assessment of different investment plans is vital to growing your wealth over time. However, choosing the appropriate investment plan depends upon your needs and financial goals. Here is a go-to guide for your personalized investment plan.
Engage Yourself in Disciplined Investment- Making a disciplined investment is necessary to achieve financial goals and to have a disciplined investment it is essential to prioritize savings above expenses.
We should select a part of the income for savings and then the remaining part should be used for expenses. This will limit your expenses and increase the savings and also inculcate the habit of disciplined investment.
Follow a budget
Following a budget would prevent any impulsive buying and would also help you understand your expenses for the month. With a budget, you can understand the months when you would require to curb your expenses and the months which will be a bit tight in terms of expenses and to balance them with the months when you would have extra cash in hand.
List out your goals
Listing your goals in the near future and knowing the time horizon for every goal is necessary. Listing your goals will help you to understand your risk appetite and select your investment accordingly. You may wish to purchase a car or a house in future, and you would require investing in avenues that would give you the desired returns during the tenure.
Know your investments
There are different products in the market based on the risk-taking capabilities, time frames, or to get tax deductions. Goals which have longer tenure, then one can take higher risks and choose equities for this purpose. Short term loans should be more balanced between high risk to moderate and low-risk funds.
Funds like ULIP (Unit Linked Investment Plans) caters to bringing the dual solution of growing wealth as well as providing life coverage.
Choose SIP mode of investment
Choosing the SIP mode of investment would help in inculcating the habit of disciplined investment and also one can benefit from compounding. SIP in any investment facilitates automatic transfer of money to the chosen plan and also help in the remaining disciplined with the investments.
Let’s start with the benefits of investment planning.
Achieving financial goals– Investment plans are usually made to accomplish financial goals. Financials goals have their respective tenures, and accordingly, one can select the avenues that would fulfil the goals.
One can have different goals like saving money for retirement or investing for some bigger purchase.
Grow your wealth– Investments over time help your wealth to grow depending upon the interests that you receive on your sum. One can choose investments that can give reasonable returns and can also help in achieving the set goals or can also choose the investment with high returns and high-risk factor.
Help to deal with inflation –Investments would help in staying ahead of inflation by growing your money over time. Investing goals will help you to have a corpus for retirement that would take care of the expenses even when the prices are high.
You can select your own investment portfolio depending upon your goals or can select your fund manager who would help you with your investment and charge a nominal fee. The several benefits of investing help in keeping you financially stable even during the crisis period