Every person aspires to make wealth from a young age. We work day by day and keep looking for business opportunities to earn money to fulfill our needs and desires. As most people often experience, by the time they are able to collect the required amount for a specific goal, they realize that the goal has become more expensive. So it becomes important for us to understand that we can better plan the process of wealth creation to achieve our goals. , Always remember, unless you have a well-defined wealth building plan, the cost of achieving and meeting your financial goal is going to grow faster than the value of your investment.

As Warren Buffett quotes, “Never depend on one income. Invest to make another source.” So it becomes very important that we need to plan well and get our money to start working for us along with our regular income.

We, being a financial services provider, often face the question: ‘What is the right time to start investing and how much should we invest?’ The answer is – ‘There is no right or wrong time’ to start investing, the important thing is to start investing in whatever investable surplus you have. You can start your investment from as low as Rs.2,000/-. For example, one can do SIP (Systematic Investment Plan) through mutual funds. What is more important is prioritizing your expenses. Everyone should manage their cash flow i.e. review their earnings, calculate their expenses and savings and invest accordingly based on their risk appetite, financial goals and liquidity needs. There are many investment options available in the market with different features like loans, gold, real estate, REITs.

For ease purpose it is always better to keep some financial goal in mind and plan for the same. Consulting a financial advisor can help you understand your goals and invest in the right path.

There is an old saying that “the timing of the market is more important than the timing of the market”. It is not enough to just set a financial goal and choose the right investment instrument for wealth creation. You must give your investments time to grow and have discipline and consistency in your investing habits.

Review and rebalancing is important for portfolio management

Investment is not only the key point but at the same time, review and rebalancing plays a very important role. like we always say regular
health check up important, likewise
review of Our
portfolio health equally important.

One should review your investment portfolio from time to time to find out whether any changes in the market have caused or increased the value of your assets, making your portfolio too risky or non-progressive has gone. Over time, the risk-to-return ratio of assets can change. You can view changes in your risk profile and financial needs.

Rebalancing your portfolio helps you stay in line with your asset allocation strategy and implement any changes you make to your strategy. Some of the benefits of rebalancing your portfolio are listed below:

1. Helps in maintaining the original asset mix.
   
2. Better risk management.
   
3. Useful in implementing changes in investment strategy.
   

Views are personal: Author – Bhavin Shah is the Director at Latin Manharlal

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.