I have been sharing with you my dear readers myriad aspects of personal financial planning. I have been receiving positive feedback and I am more than happy to continue writing posts which will empower you in becoming informed investor. We are planning a quarterly newsletter which will reach you by post or by courier. I hope we will be able to start it in the next 2 months.
Many people tell me, “Dear Sam, all that you write is great but how do we start?” I think it is absolutely necessary to know this. So following are 5 points to keep in mind before investing:
1. Know yourself first.
2. Know your investment goal.
3. Know your risk tolerance.
4. Know your investment time frame and select investment products accordingly.
5. Know your asset allocation and stick to it.
Now for eg. if you want money 2-3 years down the line, your priorities must be safety of principal and liquidity. You can’t expect your short term investments to be risky to produce returns.
Similarly, long term goals like wealth creation, retirement needs patience. Your best bet here would be starting an SlP in diversified equity fund and staying invested as long as you can.
RIPE FRUIT IS SWEET !!!
You must be enjoying Alphonso Mangoes this summer season. It takes about 8-10 years for a mango tree to finally bear the fruit we all love so much.YOU MUST BE PATIENT FOR ENJOYING THE BEST SWEETNESS OF MANGO. Good investor must learn universal law of the farm. You can’t sow today and reap tomorrow. The same principle should be applied to our investment proceess.
Happy Investing !