Investment Planning Simplified for Indian investors

Our Technical Experts who track NSE stock market  every second by second  say’s that Investment planning is very simple and its more rewarding for Indian investors than they  would  have imagine earlier some years back. So if you plan it properly you are sure to achieve the targets set by you in the future.

To Start Investing your age and investment amount does not matter, but if you start at early age with big amount then, your outcome i.e returns from that investment will be huge. Also we don’t think that you should have lot of technical information before you start investing in Indian Markets. 

We can divide investments planning in Three Steps

1)      Decide your Long term financial goals
Since Normally people do investment is a for some long term expenses, first you need to think about those long terms goals. So Before you start with actual investing, Ask yourself, What are your  goals?   Why are you saving money?  Do you plan to buy  A house?, To Buy Bigger House or in a Good Locality?  Are you savings for Child's Future education/ marriage?  Do you plan to Buy New car? Do you want to go for World tour? Is this investment for your Retirement life?

Once you finalize the details,  Prepare a details chart of this things,

Chart Example

We have given a simple Financial Goal Chart Prepared for Mr. Sandeep Kumar a  IT Expert working in Tech Mahindra age 25 years, having a salary of 50,000/- per month  

	Amount	Time Horizon
Marriage	3,00,000	2 years
Child Education	10,00,000	15 years
Upgrading from 1 BHK to 2 BHK Flat	10,00,000	5 Years
World Tour	6,00,000	5 Years
Child Marriage	5,00,000	25 Years
Retirement Fund	25,00,000	35  years

2)      Calculate your risk profile
First describe your risk profile, you can be aggressive investor, a conservative investor or somewhere in the middle Depending on our income and needs, we all have different capacity for risk. At the Age of 21, you can take more risk with your investments but at the age of 50, your profile of risk taking turns to very cautious and safe.  We also have a different risk tolerance, based on our individual psychological make-up. Understand your risk profile and plan your portfolio accordingly. Depending on your Risk Profile Investment options can be Bank Deposits, Life Insurance, Investment Linked Funds, Bonds / Debentures / Company Fixed Deposits, Investments in Shares, Investments in Business, Investments in Property.  The amount of risk you are willing to take plays a big role in how your portfolio will be allocated. Working with your financial professional, you can determine your comfort level with investment risk

3)       Planning your asset allocation for Investment
If you have a long period of time (10 or more years) to reach a goal, you may want to choose investments with greater growth potential with some risk attached to it. So Investment in Shares / Debentures, Investment linked funds, Investments in Property, Gold can be options for your asset allocation for your investments.  But if suppose you have less than five years to reach a goal, you may prefer investments that protect your investments and are safe with less returns but sure returns. So Options like Bank Deposits, Company Deposits, Fixed Deposits are the options that you can look forward to invest your money.  

So Investment Planning can be summarize as to first finalizing your investment s goals with time limit, calculate your risk profile, and depending on that, make your investments in available options.