Menu

" Make a good investment plan.
Then relax and watch your money grow. "

Investment Planning

What is investment planning?

An Investment means keeping aside money today, to get a higher return in the future.

Investment planning needs to be done based on the risk you are able to handle. If you are risk averse you must invest in fixed income securities. The money you invest is safe and you get interest on it.

You can invest in equity if you like to take risks in your investments. You can invest your money in shares or equity mutual funds to get higher returns, if you are a risk aggressive investor.

How is investment planning done?

If you are a conservative investor, you do not like to lose money. You want your principal invested to remain intact as well as earn interest on it.
These are some of the financial instruments you would consider:

Public Provident Fund
5 Year Bank Fixed Deposits
National Savings Certificate
Senior citizens savings scheme
Post office monthly income scheme

Why Investment Planning
Your Emergency Fund

Your Emergency Fund

It helps you increase your money which you can set aside for an emergency. You don't need to borrow money to pay the medical bill.

Meet Financial Goals

Meet Financial Goals

You can meet financial goals such as holidaying abroad, buying a car or even setting aside money for retirement.

Increase Your Wealth

Increase Your Wealth

If you want to become rich, just saving money is not enough. You need to invest. Investing helps you gain the benefits of compounding.

Tax Benefits

Tax Benefits

If you invest in equity linked saving schemes a type of equity mutual fund, you get tax benefits on your investment.

Key factors to consider for Investment Planning

If you are an aggressive investor you would invest in

Equity Linked Saving Schemes (ELSS) :

If you are willing to bear a very high risk for a very high return, then you must consider an investment in ELSS.

It gives you a high return of around 10-12% if the stock markets do well but can also result in severe losses if the market crashes.

You also enjoy a tax deduction under Section 80 C, up to INR 1.5 Lakhs on the money invested in the ELSS.

ELSS also enjoys "EEE" status which means the money invested in the ELSS, The money accumulated with time and the maturity amount (Withdrawn after 3 years) are free of tax. Since you are forced to invest in the ELSS for at least 3 years you are a long term investor and can get good profits.

You could invest in a Systematic Investment Plan (SIP) of an equity mutual fund

In an SIP a fixed sum of money is deducted each month from your bank account and invested in an equity mutual fund scheme of your choice, on a particular day of the month.

Your money is managed by a Professional Fund Manager. You do not need to time the market. You just spend time in the market.

Related Articles

21 January 2017, Thursday

Why Is Inflation Vanishing In India?

  What was the price of rice, milk, fruits, vegetables, juices cakes, clothes, fuel  and electronic items a year ago? Is it the same today? Has not the price increased? Everything you buy is so costly. Things are getting unaffordable. You can lay the blame on the dreaded word "Infl...

24 January 2017, Thursday

GST Big Bang Impact On Your Stocks

  “I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.”   Yes, just follow this investment secret revealed by none other than Warren Buffett himself. You will find yourself a great investor in stoc...

20 January 2017, Thursday

These Are The 6 Worst Mistakes I Made When I Retired At 55 With Rs 8 Crores

    "Success is where preparation and opportunity meet."                                                             &nbs...

Most Read Articles

20 January 2008, Thursday

Milestones of the sensex

The BSE Sensex or Bombay Stock Exchange Sensitive Index is a value-weighted index composed of 30 stocks with the base value of 100 started on April 1979. It consists of the 30 largest and most actively traded stocks, representative of various sectors, on the Bombay Stock Exchange. These companies ...

07 January 2014, Thursday

Why is it very Essential to have Defensive Stocks in ones Portfolio?

There is a famous saying “Better be safe than sorry”. One cannot make too many mistakes and live to tell the tale when he is investing in the stock market. Building a safety net under one’s portfolio is very essential and its true value is realized only in a recession. Fortunately...

18 January 2012, Thursday

How to Make Claim on a Health Insurance Policy

Formalities for a health insurance claim You can make a claim under a Health insurance policy in two ways : On a Cashless basis and A Reimbursement Claim On a Cashless basis : For a claim on cashless basis, your treatment must be only at a network hospital of the Third Party Admini...

In The Media