Hyderabad: Wealth checkups are also as important as health checkups, opined financial experts and they suggested that one should access market opportunities before investing. Usually, we go for checkups to maintain good health. Similarly, one should check our wealth from time to time whether we are going on the right track or not as financial planning is vital for a better future.
Financial Planning: Corona taught many lessons as it has rendered many jobless while businessmen and entrepreneurs were left in the lurch as the economy collapsed. The stock market, too, has seen many ups and downs. However, let's hope the New Year would stabilise the economy so that industrialists and businessmen reap benefits.
1 Are you on target? Investing on a targeted basis is nothing new. However, the forthcoming Multicap and Flexi Cap Fund schemes allow investors to access opportunities in all segments (large, mid, small). Of these, the risk is minimal. In addition, investors should consider other investments that can increase their money.
2 What is risk-reward? Risk is generally considered to be a stressful topic. However, those who are aware of the market understand that risk and rewards are inextricably linked. Investors can take the risk depending upon their needs and financial capabilities.
3 What are the opportunities? There are more slow progressors than aggressive investors in the country. They are investing in ETFs, Fund of Funds and Index Funds. But, opportunities arise when we focus on areas that have the potential to provide better returns to investors than in a single index.
4 Have investment objectives been reviewed? Dramatic developments have taken place in the last two years. The needs and priorities of the people have been changed. It would be wise to reconsider our investment at the beginning of the New Year. Whether you want to get married or pursue higher education or want to create a fund for fresh opportunities in the market .. it is important to strike a balance between all of these. And at the time, you should adjust your portfolio to suit your goals and future needs.
5 Are you looking outside the country? Though there are many new opportunities in the Indian market, there is nothing wrong with considering benefits in the international market. Most importantly, if you have the courage to take the risk, investments can be made in the markets of developed countries through the Fund of Funds to create wealth in the long run.
6 Have you invested in an emergency fund? Nothing is permanent in life, but we should be prepared to face any eventualities, for instance, normal life came to a standstill with Covid. The principle of being ready for everything is very important during a pandemic. Therefore, one should create an emergency fund. For this, we can consider the Overnight Fund, Liquid Fund, Low Duration Debt Fund or Floater Fund. Only then, we can achieve our goals easily. It is always necessary to invest where there is a good return with a long-term vision. Not all companies and sectors expect the same rewards now as in the future. Hence, the focus should be on ‘quality’. It is not possible to make changes in the total investment at once. But, if we can make our financial decisions well in advance so that the future will be bright, says Rajiv Iyengar, Chief Business Officer, Axis AMC.
Also read: Independence Day: 6 money rules to become financially independent
