Last week I shared a news byte on the outcome of election results. In this post I would like to put forth some of my views, i.e. from a financial planner's perspective, and what you as investors need to be careful about.
High Returns = High Arrogance
Although it's very much certain that we are in midst of a bull phase in the equity markets, Yes you would be rewarded handsomely in the long run but as a financial planner, I would like to remind you that along with high returns there comes a high degree of arrogance(human behavior), you need to be careful about this arrogance. The best way to travel this path of high growth is to be disciplined, and no better feature than a SIP imparts discipline in your investments allowing you to accomplish your pre-determined Financial Goal.
Beware of Dubious "New" Financial Products:
Historically, it is seen that a lot of भूल भूलैया financial products follow a bull market, beware of such products. Try to understand your need and whether that product is suitable for you and fits your scheme of things(financial plan & risk appetite). Just because a new product is launched its not necessary for you to be a investor in the same. Take a well informed decision and do not get swayed with wonderfully convincing sales pitches.
Aim for Real Returns
Choose the right advisor(to be addressed in detail at a later date)
Taking the help of a financial planner depends on your goals and not really on your income. Whether you earn Rs. 40,000 a month or Rs.2 lakh, you may need professional help if you don’t know how to manage money for multiple goals. Getting the right financial planner can set your money matters on track as he/she will help you fulfill your specific financial goals by telling you the best way to save and invest appropriately (tax efficiently too). But this will happen only if you have the right advisor.
Some tips to keep in mind while selecting the right advisor:
1. Avoid a salesperson
2. Ask for credentials
3. Pay for advice
The markets for now look promising but it will not be free from turbulence. This does not mean you should be focusing only on Equity based products, PPF and other debt products like fixed deposits and debt mutual funds are equally important for the success of your overall financial plan.
High Returns = High Arrogance
Although it's very much certain that we are in midst of a bull phase in the equity markets, Yes you would be rewarded handsomely in the long run but as a financial planner, I would like to remind you that along with high returns there comes a high degree of arrogance(human behavior), you need to be careful about this arrogance. The best way to travel this path of high growth is to be disciplined, and no better feature than a SIP imparts discipline in your investments allowing you to accomplish your pre-determined Financial Goal.
Beware of Dubious "New" Financial Products:
Historically, it is seen that a lot of भूल भूलैया financial products follow a bull market, beware of such products. Try to understand your need and whether that product is suitable for you and fits your scheme of things(financial plan & risk appetite). Just because a new product is launched its not necessary for you to be a investor in the same. Take a well informed decision and do not get swayed with wonderfully convincing sales pitches.
Aim for Real Returns
Choose the right advisor(to be addressed in detail at a later date)
Taking the help of a financial planner depends on your goals and not really on your income. Whether you earn Rs. 40,000 a month or Rs.2 lakh, you may need professional help if you don’t know how to manage money for multiple goals. Getting the right financial planner can set your money matters on track as he/she will help you fulfill your specific financial goals by telling you the best way to save and invest appropriately (tax efficiently too). But this will happen only if you have the right advisor.
Some tips to keep in mind while selecting the right advisor:
1. Avoid a salesperson
2. Ask for credentials
3. Pay for advice
The markets for now look promising but it will not be free from turbulence. This does not mean you should be focusing only on Equity based products, PPF and other debt products like fixed deposits and debt mutual funds are equally important for the success of your overall financial plan.
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