Mrs. FA: That’s a great thought. May I ask what prompted you to take this decision?
Mr. Inv: My colleagues in office have invested in this scheme recently and they were talking about it. This theme has done well in recent times and looks good for the future. I also heard on business channels about the bright prospects of such companies. I want to participate in this future trend.
Mr. Inv: Oh, is that so! But isn’t investing in equities, especially such new age stocks for the long-term the right thing to do? Could you please elaborate?
Mrs. FA: Yes, it is. However, what really matters is the sequence of financial planning. The first steps are to evaluate your insurance coverage and emergency corpus based on a solid budgeting exercise before looking to invest.
In the above conversation, if you identify with the thoughts of investor Mr. Inv, then let me explain the importance of sequencing in financial planning.
Financial planning is both an art and science in my opinion. While there are well-accepted rules for the same, each individual and his requirements have some unique elements.
This makes customization an inherent part of financial planning. Often, there are a range of issues to take care of before one settles for a customized financial plan: taxation, associated costs, flexibility, cash flows, insurance, type of instruments among other things. A seasoned financial planner can help sort out this aspect. However, the onus is on the investor to follow the right sequence of financial planning activities.
Diese Geschichte stammt aus der October 2022-Ausgabe von Investors India.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent ? Anmelden
Diese Geschichte stammt aus der October 2022-Ausgabe von Investors India.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent? Anmelden
5 Steps To Achieve Your Financial Goals
From a beach house, a Jaguar, to traveling the world – there are many things in life that we want to accomplish.
Microbiome: The Invisible Ecosystem Within us that Safeguards our Health
Imagine being able to heal yourself and build immunity against major diseases without relying on heavy medication. It sounds fantastic, right? Who wouldn’t want that? The key to achieving this lies in a fascinating area of research—our microbiome.
Gold ETFs: Attractive option for retail investors to take exposure to yellow metal
With the equity market experiencing volatility in August, investors are increasingly seeking to diversify their portfolios.
The Retail Revolution: How India's Stock Market Got a Makeover by the Common Man
In the annals of India’s financial history, the stock market has long been the playground of the big boys—mutual funds, insurance behemoths, and foreign portfolio investors (FPIs).
Strategies to adopt when the markets are at a high (for new and existing MF investors)
An investor must have a plan in place and, more importantly, stick to it regardless of shifting market conditions.
A Collaboration to keep Health FirstPNUT and IDA come together as One!
You reap what you sow! And if you sow health, you will reap a healthier tomorrow. Following the same lines, Personal Nutrition (PNUT) and Indian Dental Association (IDA) have come together as partners to promote complete health and nutrition for each individual! How things unfolded? Let’s explore.
Making a choice between equity and debt mutual funds for long-term goals
Mutual funds are quickly becoming a preferred investment choice for millennials.
ASK THE EXPERT
From last Financial Year, I have shifted to the new Tax Regime.
Flexi-cap Fund Vs Hybrid Fund
Investors in mutual funds can choose from equity, debt, or hybrid funds, each offering different risk and return profiles. Flexi-cap funds provide diversification across market capitalisations, while hybrid funds balance equity and debt for stable returns.
Neuroplasticity: You Can Teach An 'Old' Brain New Skill
A few decades ago, it was believed that the brain’s structure and functions were entirely dependent on genetics, age, and early childhood experiences.