Investing – the core in financial planning
This is the part 7 of the series “Masterize in Financial Planning through Football”
As the heading mean, investment is the core of financial planning to meet your goals set in the Part 3. These goals can be short term, mid term and long term depends on the individual. Here are the information on the required activity while selecting and investing. We are coming to our football team again. When the team is in the field, there will be some tactics to win. The team will be formed in various style depends on the opposite team, and the style of play. We have heard lots of styles like 3-3-4 or 4-3-3 or 4-4-2 or 4-3-4 methods. This means the number of players as full back, number of players in the mid field and others as the forward. This will be changed upon situations or changing the style. It all depends of team captain upon the consultation with chief coach time to time.Investments also like this. Investing always required lots of personal preparation depends on various factors.
Below are the major points to consider:
1. The very important consideration in investing is, it should happen on the individual’s Goal, Age and Risk Taking Capacity.2. The portfolio should be well prepared with right proportion of investment instrument like equity, debt instruments as well as other instruments like real estate, gold to meet various goals depends on the term (Short, mid, long) and risk of investor. The idea behind this is, the investor should know what investment will help him to achieve the short term goals, the mid term goals or the long term goals. This can avoid huge, costly mistakes.3. Investor should be well aware on the return side of each investment instruments, associated risk with each instruments and its suitability to add in portfolio to meet his various goals.4. Always and always research a lot to always pick the golden egg from the group of huge number of similar products.5. An investor should be well prepared to meet the temporary consequences and should not be panic if something bad happening for short term with his investments. He should practice patience in a higher degree to avoid any action by panic of losing money.6. Monitoring of portfolio in the right time required to avoid laggard investments and add good products to the portfolio.7. Required to churn your portfolio time to time to meet the investment goals. Remember, the position of football players will be changed when the strategy changing in the game. Churning will help you to balance your portfolio properly to get the maximum benefits time to time.8. Always get the right advice from right, qualified financial planner by carefully selecting one.
Below are the things an investor should avoid.
1. Investment is not a time passing hobby or part time work. It is a full time, huge amount of attention required activity.2. Never invest on anything without having proper research and study about the product.3. Investing to anything without a goal is useless4. Don’t follow public or take advice from friends or relatives to make your serious investments.5. Do not commit stock trading instead of stock investing6. Never invest all your money to a single instrument by remembering the famous word “Don’t put all your eggs in a single basket”7. If you don’t have time to learn and do research on the product, it is better to not go to invest on that.As a bonus, you can have a visit later to this blog to get the next series of posts on investing. I am planning to have another series of post with the do and don’ts with all the presently available investing instruments soon.Always remember the information from any blog or site or financial planner is not complete to get full knowledge on investing. You can have maximum knowledge on the same from books, from qualified experts in each section. But the final knowledge you are getting from your experience only.My best wishes to all the investors. Please feel free to inform me once if you found any good point I have forgot to add with this article or you found any error or have any doubts on this article and at any point. Frequently comment on this blog and I will give the reply at the earliest to clear your doubts or add your good pints to this article.
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