Investing the investors way

So you just invested into the last MF NFO. Congrats, but was it according to certain plan or some advisor told you it’s the best plan, the amazing concept it has or as usual the India growth story.

If it’s the latter then you might be in trouble.

Every year millions of investors worldwide fall into this kind of trap created by the marketing departments of various investment companies. Beware!!

Here I am not trying to say that the India growth story is not happening but my simple understanding of an investor is a person who knows where the money is going, approx how much it will grow to by certain date and what are the risks involved.

So are you an investor?

By an investor I mean a person who has planned and will execute the plan to satisfy his need, wants, desires over a period of time. I am not speaking about those people who buy few mutual fund or insurance plans thinking its investment or save some amount of money or buy some stocks because somebody else is buying it.

Investing is an art and it doesn’t constitute buying some products, which are doing well in the market. It involves a total planning by taking into consideration

The salary or income,

The cash flow statements, which will let us know the amount, which can be invested regularly

The bulk money to be invested or already invested.

The Goal analysis: Analyzing the time bound realistic need, goals and dreams

The analysis of insurance cover. It doesn’t mean that we buy a plan as everybody is buying it or as your best friends daughter is an agent or the worst of all buy to get a tax deduction. Insurance should be bought by analyzing the above said points. An Ideal plan will be with least charges and which will supports the family during unforeseen circumstances at the same time will also gives the best benefits, which will help in achieving your time barred goals & dreams.

The risk profile analysis:
The more risk you take the more are the chances for higher returns but an individual will have a limit to the amount of risk he can take with the money invested what ever the returns be.

Last but not the least once the plan is made & implemented keep a track of it. Make sure to review and rebalance regularly as the plan needs to change with a change in the needs and goals.

Keep Reading Investor…


Comments

  1. AnonymousJuly 08, 2007

    Oi, achei teu blog pelo google tá bem interessante gostei desse post. Quando der dá uma passada pelo meu blog, é sobre camisetas personalizadas, mostra passo a passo como criar uma camiseta personalizada bem maneira. Se você quiser linkar meu blog no seu eu ficaria agradecido, até mais e sucesso. (If you speak English can see the version in English of the Camiseta Personalizada. If he will be possible add my blog in your blogroll I thankful, bye friend).

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