Capex cycle is one of the most important economic trends one needs to track in the macro space as it is a critical ingredient in order to achieve a higher trajectory of economic growth in later years. Making capex decisions are usually very complex.
Prudent financial planning involves listing down the financial priorities and then steadily working towards achieving the financial goals in the desired time frame. While you may have already taken your first step towards investing towards a healthy financial future by registering a Systematic Investment Plan (SIP), it is equally important to review the investment periodically. The performance review of the investment portfolio would allow you to align your financial priorities and financial goals.
It is said, "If you don't know where you're going, any road will take you there." Just like you must know your destination before you start your journey, you must determine the financial goal before you start investing. You must have a specific financial goal in sight. Be it saving for your child's education, buying a new house or saving for your retirement, linking your investments with your financial goals help you accomplish your goal in a better way.
While Indians have historically been investing in physical assets like gold, real estate, etc., the millennials are reflecting an increasing preference towards investing in financial assets. Mutual funds are steadily emerging as a preferred investment option, as also being reflected by steady monthly SIP inflows (Source – Association of Mutual Funds in India, AMFI).
A diversified investment portfolio holds the key to long term financial prosperity. The investors must plan to allocate their investments across different asset classes such as equity, debt, gold, etc. Since the investors don't rely on a single asset class for their portfolio performance, the returns may be expected to be stable across market cycles. While equity renders the potential of higher returns over the long term, the debt investments may impart with stability to the portfolio.
Mutual funds have been instrumental in channelising the household savings into financial markets, as the investors need not have expert knowledge about the financial markets to invest in mutual funds. Investors may rely upon professional fund management for their investments in mutual funds. Further, with the availability of a wide range of mutual fund schemes, investments in mutual fund schemes can be made as per personal risk appetite and financial goals.
The year 2020 has just started, and probably you have made your new year resolutions. But have you decided on financial resolutions for the new year to improve your financial habit and create wealth? Your financial resolutions should be more prudent and long term in nature.
While there is no text-book definition
Retirement is often seen as the second innings of life. That is the time when you enjoy the luxury of time, while you do not have any official meetings to attend or timelines to meet. While it may be an extended vacation, you may be in for many surprises, if you have not planned for it. Retirement planning must be done prudently and systematically so that you don't have any financial constraints while planning to fulfil your pending dreams and aspirations after retirement.
A wise man once said, “the best time to plant a tree was 20 years ago; the second-best time is Now.” This quote not only gains its relevance in the World which is getting warmer every year but is equally relevant in the financial world.
