While we have almost crossed the fourth month of 2017; indeed, it’s not surprising that all those financial goals declared during the first week of January are simply going down the drain. But financial plannings are always tough to crack. How are we supposed to understand the concepts like SIPs, debentures, shares, MFs or monthly debt equity plans when most of us don’t even have a commerce background?
Well, we understand your ordeal when it comes to chalking out your investment plans but in reality investment plans are not as scary as they seem to be. All you need is a familiarity with the basic terminologies and a strict observance of the guidelines that we are mentioning and that’s it, your foolproof investment plan is ready for 2017.
- Plan in Advance: There are two ways to reap benefits of your investments, either you can plan in advance and then reap timely benefits or you can simply spend your life waiting thinking that one fine day you will have enough wealth to fulfill your dreams. Planning in advance saves you from last minute trouble in case of any financial crisis. So stick to planning in advance.
- Less is More: Unless you are an investment banker, restrict yourself from falling prey to hot stock offers or trivial investment advices given by your peers or friends. What works for them may not work for you. Thus, being an amateur try to play it safe by adhering to the principle of less is more. Invest in limited but good stocks.
- Duration of Investment: The time span forms the fundamental component of any investment. For example: If you are thinking of making a short term investment (say for 3-5years) then its advisable to opt for MIPs (Monthly Income Plans) offered by mutual funds. Likewise, in case of long term investments (<7years) , opt for diversified or index funds.
- Entry & Exit: Try to understand the right time to buy or sell a particular stock. The timely entry(buying) and exit(selling) can save you from a lot of financial blunders. Similarly, if you manage to get hold of stocks which are reliable and are known for bringing in the timely returns then ensure that you don’t kill the goose that is laying golden eggs for you.
- Ask for a Professional Help: Don’t shy away from asking for a professional financial help in case the investments are giving you a tough time. Although you can find loads of information from various sources for your investments plans but a professional financial planner would help you to develop a holistic financial plan depending upon your income and expenses.
Regardless of the above mentioned guidelines, if possible, try to read the financial books to get a hold of basic financial literacy. In case you are thinking to avoid the entire scenario of investments altogether owning to its complexities then mind well, your dream of financial stability in never going to be fulfilled. So plan well and secure your future before its too late.