Now that if you have steered your finance vehicle with my previous article, you must have come across the road with several directions. Which way to move and step ahead to reach to your final destination of your goal is a big question. After taking a dekko on various factors and the stepwise procedure to plan your finances, with this article, I would like to draw a sitemap of all paths with their ups and downs and how and when to lead your way to achieve your financial goals.
Now that if you have steered your finance vehicle with my previous article, you must have come across the road with several directions. Which way to move and step ahead to reach to your final destination of your goal is a big question. After taking a dekko on various factors and the stepwise procedure to plan your finances, with this article, I would like to draw a sitemap of all paths with their ups and downs and how and when to lead your way to achieve your financial goals.
“When all’s said and done, all roads lead to the same end. So it’s not so much which road you take, as how you take it.”
Insurance: The first step of Financial planning is to attain financial security of an individual and his loved ones from unseen financial disasters that may arise in future by investing in Life and Health Insurance products. Selection of right insurance product plays vital role. It should be done according to an individual’s financial status, future liabilities & commitments. Insurance is inevitable but at the same time make sure that you are not over insured.
Bank Fixed Deposits; Bank F.D. is the most accepted investment avenue amongst investors. Fixed deposits with the banks are nearly 100% safe as all the banks operating in the country, whether they are nationalised, private, or foreign, are governed by the RBI’s rules and regulations, and give due
weightage to the interest of the investor. One can get loans up to 75- 90% of the deposit amount from banks against fixed deposit receipts in paydayloans uk. Though the interest charged will be slightly more than the interest earned by the deposit. An ideal portfolio is incomplete without Bank F.D.
Post Office Saving Schemes: These schemes are offered by Govt. of India and are safe, secure and risk-free investment options.
It includes fixed deposits, recurring deposits, public provident fund (PPF), Kisan Vikas Patra (KVP) and National Savings Certificate (NSC). NSC, among the most popular post office schemes, offers an interest rate of 8% per annum, which is compounded half-yearly. PPF is considered as Darling of all tax saving investments, offering an interest rate of 8% p.a. KVP Scheme doubles money in eight years and seven months.
New Pension Scheme (NPS): NPS is an ultra-low-cost funded pension system in which a common recordkeeping agency maintains individual pension funds of subscribers, who can choose from alternative pension fund managers and asset classes for investments. The Central Recordkeeping Agency (CRA) will maintain all the accounts shared by six different pension fund managers (PFMs) investing them in three asset classes, equity (E), government securities (G)and debt
instruments that entail credit risk (C), including corporate bonds and fixed deposits. Exposure to equity has been capped at 50%.
Debt Instruments: A debt market is also known as a ‘fixed income market’ as debt instruments pay fixed returns. Bonds are fixed income securities and offer a predictable stream of payments by way of interest and repayment of principal at the maturity of the instrument. Bonds are issued by the eligible entities
against the moneys borrowed by them from the investors on these instruments and include PSU bonds, corporate bonds and even certain Government securities like Oil Bonds, Food Bonds, and Fertilizer Bonds. In financial planning process debt instruments are of great significance as they protect the value of the complete portfolio when equity markets are witnessing slowdown
Gold: Investing in gold is an ancient tactic which has been in practice for thousands years. Of all precious metals Gold is the most trusted investment option for millions. There are two ways to invest in gold, Physical and electronic form. One can easily buy gold in dematerialized form through National
stock Exchange where 1 gram of gold is traded. Gold gives your portfolio stability that other investments lack, and it can be the anchor that holds your finances together through rough times by acting as a hedging component. Gold is both an investment vehicle and a safe haven.
Property: The property boom is spreading in all directions of the country hence offering various avenues of investments. This property could be land, a single apartment or house, a block of flats, a commercial or industrial building. Investment properties generate profits through rental income, capital growth or
both. It is a promising prospect in long term as is less prone to volatilities and benefits in tax deductions.
Mutual funds: Investment in mutual funds proves to be a right choice, in case you do not have time to do research and analysis of the market. It is a vehicle through which an investor can indirectly invest in equities or the debt market instruments. Investment can be made one time or on Monthly basis. Systematic
Investment Plans (SIP) allows you to save regularly in a disciplined manner. It takes the advantage of volatility in the market and hence can be more profitable over a longer period of time.
Equity: It plays major role in creation of wealth. Investing in the equity market can fetch you handsome returns depending on the quality of investment. The investment can be short-term or long-term. The investment in stocks or shares requires a perfect market research and analysis. The money should be deployed
very smartly so that the investor should not suffer even during the slowdown in the market. The economical slowdown or correction should rather be looked upon as an opportunity to enter.
Company Fixed Deposits: Company Fixed Deposit market in India has an interesting phase of evolution. It basically grew out of the need of Corporate Sector for raising short-term finance and requirements of small investors to earn superior returns as compared to returns offered by the Banks. There are many companies that are raising funds through Fixed Deposits, but to choose a right one you should consult your financial advisor before investing in it.
The right Financial Planning can be extremely beneficial. It can reduce uncertainty and bring a disciplined and organised approach to planning for your future.
For financial planning, investment doesn’t happen just by itself. It requires a lot of concentration and discipline. A proper investment planning
implies that you can take care of your family by discovering the best investment options to give them everything they want in life. Just as the dose of medication differs from an infant to an old person, same follows with the intake of syrup of Financial Planning which differs in the different age-group. Reach a good Financial Advisor for the right prescription for your life.
Satvik Financial Services Pvt. Ltd.
Financial Planning – Stock Broking – Mutual Funds – Insurance – Real Estate
Head Office : P-47/B, Puranik Layout, Bharat Nagar, Nagpur – 440033
Ph: 0712-3241921, 6532647 www.satvikgroup.co.in; [email protected]
Aurangabad Amravati Bhandara Faizpur Malkapur Nandura Tumsar Warora Raipur