asset allocation
One must have a financial portfolio, which contains the essence of all financial asset classes. The financial portfolio can include mutual funds, NPS to protect retirement planning and regular contributions to Public Provident Fund account for better asset allocation and diversification from other asset classes such as equities, debt etc. Apart from having regular pension, adequate health insurance and life insurance is also important for life.
financial plan documentation
Financial literacy is important if you want to invest and become rich. For that, you need to take an interest in learning about new financial instruments, what kind of risk-rewards they offer along with every opportunity to learn more about the different instruments in the market and plan your finances accordingly. make plans. It is also important to mention here that one can make a financial plan in the form of a document and they should implement it and rebalance their portfolio by reviewing it from time to time. Documentation keeps track of investments along with past returns and current ones.
Sleep
Many people have a special hobby of sleeping. One can invest in gold either in the form of physical gold (jewellery) or digital or in the form of paper gold (gold mutual funds, gold ETFs and sovereign gold bonds, etc.). One can choose his desired option and start investing accordingly.
retirement planning
One should start planning for retirement as early in life as possible. Retirement benefits should not only be used for expenditure but should be invested/reinvested for a lifetime to get benefits in future. Along with protecting the family members, their retirement needs need to be strategised in advance. Please be aware of the fact that, it is not constant that one who is working will retire at the age of 60. Retirement will depend on their personal and professional needs and preferences. Next, they need to make extraordinary and specific plans for early retirement and ensure that they have all the resources that are appropriate for them to live comfortably for the rest of their lives. This can be done by creating a corpus and investing and capitalizing its resources in different asset classes: real estate, equity, debt etc.
emergency investment
Always keep an emergency fund so that you do not have to rely solely on long term investments for emergencies. Early withdrawal can come with a huge opportunity cost. Investing regularly helps you build a significant corpus for yourself. These not only help you achieve your objectives and goals but also provide you with a backup plan to rely on in case of an emergency.
As an intellectual investor, you need to be knowledgeable about the market and diversified investment strategy. You can increase your wealth and achieve your financial goals easily by taking intelligent investment decisions.
Views are personal: Author –
Pankaj Ladha is a mutual fund distributor from Kota
Disclaimer:
The views expressed are those of the author and are personal. TAMPL may or may not subscribe to it. The views expressed in this article/video are in no way intended to predict or time the markets. The views expressed are for informational purposes only and do not imply any investment, legal or taxation advice. Any action taken by you based on the information contained herein is your sole responsibility and Tata Asset Management will not be liable in any way for the consequences of such action by you. There is no guarantee or assured return under any of the schemes of Tata Mutual Fund.
Mutual fund investments are subject to market risks, read all the documents related to the scheme carefully.
Article by – Pankaj Ladha (a mutual fund distributor)