Insights

Identify your real financial goals and draw a time based plan. Be clear about the purpose behind each goal. How emotionally joyous and elated you would be, when you achieve these goals? Don’t know where to start? That is where we come in.

One of the most important rules of investing is to start as early as possible. This is because it takes time for your investments to grow. Ever seen a tree bearing fruit as soon as it is planted?

Investing is a marathon, not a sprint. Time in the market tends to be more important than timing the market. Stay patient and let your investments grow over time with the Power of Compounding. Albert Einstein called it the eighth wonder of the world.

It is a good practice to create an emergency fund for rainy days. People invest for the long term, but often in times of emergency, break those investments early, in losses. An emergency fund helps you manage short-term needs without the need to break investments which are highly rewarding over the long term.

Whether you like it or not, costs of living will keep rising and the purchasing power of money goes down because of inflation. Hence it is important to understand the real return on your investments. A RS.100/- investment @ 6% in a fixed deposit becomes RS.106/-, but 7% inflation reduces the effect silently. Your net return becomes negative (6% – 7%) = -1%. What about the tax on the interest earning if you are in the tax bracket? Hence, invest in products which are beating inflation and tax-efficient. We make it simple for you, if you decide to put your faith in us.

Market linked investments are volatile. Volatility risk and return are generally correlated, so higher potential returns often come with higher degree of volatility. Decide on the degree of volatility that you are comfortable with and then choose your investments.

Don’t put all your eggs in one basket. Diversify your investments across different asset classes (equity, bonds, gold, real estate) and within each asset class to spread volatility risk, and generate optimum return on investment.

Take informed decisions backed with knowledge and historical data. Don’t let crowd behaviour affect your emotions and dictate your investment decisions. Market fluctuations and volatility are normal. Stick to your long-term plan and avoid making impulsive decisions based on fear or greed. Market punishes impulsive investors and reward handsomely the disciplined ones.

Periodically review your investment portfolio to ensure it remains aligned with your goals and risk tolerance. Rebalance as needed to maintain your desired asset allocation.

It is better to invest in simple ideas of investment. A peaceful sleep is more important than some crazy promise of very high returns with very high risk of capital loss. Remember the money laundering scams which occur at intervals. Stay disciplined in investments which are simple to understand and are under the safety net of SEBI, RBI, Ministry of Finance.

It is always a good practice to book profits at certain intervals and reward yourself. After all, what’s the use of investment unless the fruits are harvested and enjoyed! How about a ‘Dream Family Vacation’?

Always make a ‘Will’ for the benefit of your loved ones. More often than not, succession is worrisome and gruelling for the family members in the absence of a proper registered will. Having a ‘Will’ is always a good idea for smooth succession when you are not there.