SIMPLICITY IS THE NAME OF THE GAME

Very often investors ask this question , I have 5 lakhs where should I invest ?

My simple suggestion is pl answer these 3 questions to yourself first before deciding on any product, scheme , asset class etc.

1] What is my goal ?
The goal can be earning regular returns without taking risks ,
earning higher returns by taking risks , accumulating a corpus for retirement or childs education , wealth creation etc.

2] What is the time horizon I wish to keep the money invested?
The answer to this depends on the goal
If the goal is short term - 1-3 years
If the goal is medium term - 3-7 years
If the goal is long term - 7-15 years plus.

3] What is my risk appetite /
Am  I ok with the volatility of the markets ? Yes/No
If yes then upto what levels ?
Am I ok for getting high returns even if portfolio shows a volatility of
-10 %,-20%,-30% . ? or
I prefer very very low volatility on downside say max -1 % , but doesnt mind the returns are limited.

Once the answers to these questions are crystal clear then comes the asset class and scheme selection into picture which is then a consultants skill set to suggest the appropriate asset class and scheme so that the investor achieves his investment goal smoothly.

The focus should be on achieving the goal and not on investing in a particular scheme.

At AUM Financial Consultants we insist on

1] goal based investments.
2] tracking those investments at periodic intervals
3] changing and reallocating the asset class and schemes if reqd only .

Happy Investing !

We can meet over skype and discuss further OR click  here  to contact us