5 Steps in your Investment

Re-assess Your Risk Tolerance -

The COVID-19 pandemic has significantly changed the investment portfolio. Income is hit, So, it’s time to reassess your risk tolerance and avoid making a decision believing that you still are capable of taking a high risk as it was before. An accurate reassessment of your risk tolerance can help you to restart the creation of wealth gradually while protecting your money at the same time. 

Priorities your financial goals -

Create wealth to ensure you maintain and improve the quality of your living, to meet your financial goals. As of now, most of the investments are down and the income sources are unsure. So, Re-plan your financial goals again stillrelevant to you and which are not relevant. We can help you prioritise the same.  Redrawing your financial goals will help you to use your wealth

Rebalance your investment portfolio -

The investment scenario is not the same as before the pandemic. Depending on your age, risk appetite, goals, and return expectations, you would have invested money in different asset classes. However, due to the economic slowdown and the turmoil in the investment markets, your portfolio might have seen an imbalance; Rebalance it with your current risk appetite, goals, and returns capacity of the various asset classes

e-cast your budget –

With income already choked and growth projections bleak, you should recast your budget in such a way that you cut down on non-essential expenses to protect your wealth from erosion. we can help you with better advice to keep your money in increasing streams with some good ideas 

Focus on having multiple sources of income–

These five steps will help you toward a safe, secure, and fun retirement –

Financial Independence -

A Sound Financial planning process will free up your time from worrying about money to have joy about all the things in life that are important to you.

Maintaining Standard of Living -

For many retirees, maintaining their current standard of living after retirement is a common desire. Unfortunately, for many retirees, this goal can be difficult to achieve. . You can take steps today so that you can pursue life on your terms, no matter what retirement lifestyle you choose.

Keep inflation in mind while planning for retirement -

Inflation is the biggest culprit that will eat away the value of your savings.  Your retirement investments need to account for this inflation factor. Also, inflation will continue even in your retirement years. Think about that! 

Plan for Healthcare Costs -

Apart from working towards building a strong corpus for your retirement, also keep in mind the healthcare costs. With the old age, health problems are bound to arise and medical bills can eat into your retirement savings. Balancing both health and finances are equally critical.

Enjoyment of your own -

knowing how to have a good retirement typically involves figuring out how to travel. Travel is clearly the most popular and desired pursuit for this phase of life. From day trips by car to round, the world journeys, retirees have wanderlust! Anything is possible with the right prioritization. If travel is what you have or any other thing

Looking After Your Loved Ones Even After You –

The most important aspect of life insurance that one needs to factor in. Your family is dependent on you even after you and you certainly don't want to let them down. Replacing lost income, paying for your child's education or a much-needed financial security, life insurance could save for your surviving dependents.

Dealing with Debt -

You don't want your family to deal with financial liabilities during a crisis. Any outstanding debt-a home loan, auto loan, personal loan, or a loan on credit cards-will be taken care of if you happen to buy the right life insurance policy.

Peace of Mind -

One day it is going to happen, Death is unavoidable. In the face of tragedy, the least you can do for your family is to secure their financial future. , you know that you've done all you can to help them tide over difficult times.

It’s not as expensive as you think -

Many consumers believe that life insurance is either too complicated or too expensive to consider, creating a barrier. In actuality, life insurance is inexpensive and much more accessible that you think. 

It’s part of a sound financial plan –

Insufficient coverage may have consequences for many families and households. Without any life insurance, they would have immediate trouble paying living expenses if their primary wage earner died.  

Life insurance helps with planning for your loved ones’ long-term plans by providing you with peace of mind that they are financially protected. 

The money from the policy’s death benefit can help your family meet important financial needs like, daily living expenses and funding for future.

“You don’t buy life insurance because you are going to die, but because those you love are going to live”

Buying a health insurance policy for yourself and your family is important because medical care is expensive, especially in the private sector. Hospitalisation can burn a hole in your pocket and derail your finances.

Health insurance is important and necessary –

According to the Agency Health Foundation study, millennials will be the first generation to have worse health problems than their parents when they reach middle age. Due to this, millennials will certainly need medical intervention much earlier and in fact more often than what their parents needed years ago. This situation has undeniably made health insurance a necessity rather than just being an option for the young Indian population. 

Buzz in lifestyle diseases -

With late night work and constant pressure, there has been an increase in younger patients coming in with a range of lifestyle diseases – from diabetes to heart disease. Hence acting smart by investing early in health insurance will help avoid eroding one’s savings later. 

Early bird saves most -

The younger a person is; the more affordable insurance is. Most of the health insurers today offer benefits that encourage early enrolment. This also comes in handy while tax planning as one can claim tax deductions on premiums under section 80D. 

Demand-buy sync –

Health insurance has traditionally been associated with hospitalization. However, lately, it has been observed that young customers want preventive health check-ups, wellness and fitness features in a health plan. Health insurance should also be superuseful, covering annual check-ups, OPD visits to the dentist or ophthalmologist, or even assigning a health coach to meet one’s fitness goals. Hence, health insurance companies are now customizing their products including such features making them more customer friendly.

It's time that matters -

Health insurance coverage may require a certain waiting period before one can start using it. Getting a cover while a person is healthy and does not need it right away, ensure that the health coverage is well utilized when the need arises.

A mutual fund is a type of financial vehicle made up of a pool of money collected from many investors to invest in securities like stocks, bonds, money market instruments, and other assets. Mutual funds are operated by professional money managers, who allocate the fund's assets and attempt to produce capital gains or income for the fund's investors. A mutual fund's portfolio is structured and maintained to match the investment objectives stated in its prospectus.

Mutual funds give small or individual investors access to professionally managed portfolios of equities, bonds, and other securities. Each shareholder, therefore, participates proportionally in the gains or losses of the fund. Mutual funds invest in a vast number of securities, and performance is usually tracked as the change in the total market cap of the fund—derived by the aggregating performance of the underlying investments.

• A mutual fund is a type of investment vehicle consisting of a portfolio of stocks, bonds, or other securities. 
• Mutual funds give small or individual investors access to diversified, professionally managed portfolios at a low price.
• Mutual funds are divided into several kinds of categories, representing the kinds of securities they invest in, their investment objectives, and the type of returns they seek.
• Mutual funds charge annual fees (called expense ratios) and, in some cases, commissions, which can affect their overall returns.
• The overwhelming majority of money in employer-sponsored retirement plans goes into mutual funds.

Types of Mutual Funds -

• Equity Funds
• Fixed – Income Funds
• Index Funds
• Balanced Funds
• Money Market Funds
• Income Funds
• International / Global Funds
• Sectorial Funds
• Exchange Traded Funds
  
  
  

  Advantages of Mutual Funds –

  Diversification, Easy Access, Economies of Scale, Professional Management, Variety and Freedom of Choice, Transparency

  Disclaimer –

  Mutual Fund investments are subject to market risks, read all scheme related documents carefully. The NAVs of the schemes may go up or down depending upon the factors and forces affecting the securities market including the fluctuations in the interest rates. The past performance of the mutual funds is not necessarily indicative of future performance of the schemes. Investors are requested to review the prospectus carefully and obtain expert professional advice with regard to specific legal, tax and financial implications of the investment/participation in the scheme.

A person cannot go directly to the stock market to buy or sell shares. Buying and selling of stocks has to be done through brokers. They are individuals, companies or agencies registered with and authorised by SEBI to trade on the stock exchanges. Brokers will charge a brokerage fee or brokerage for the assistance they provide.

Get a Demat account -
Once you have a broker, the next step is to open a demat and trading account. This account will hold the stocks that you have purchased and will reflect them in your name. Shares cannot be held in physical form and they form part of the dematerialised or demat account.

Buying and Selling -

In order to buy or sell shares, one needs to inform the broker the quantity to be bought or sold along with the price at which you wish to carry out the transaction. While investing in the share market, these are the ways to invest:

1.Understand your investment requirement and take decisions accordingly.
2.Decide your goal and plan the investment strategy accordingly. Find out the stocks that are likely to align with your investment objectives.
3.Enter the market at the right time. Try and buy the share at its lowest cost especially when the market is weak and sell when it rallies. This would yield higher returns.
4.While trading you should communicate the requirements to your broker. Ensure that the broker.

We can help you to open a Demat account With Sharekhan Ltd and Zerodha.

Company Fixed Deposit (corporate FD) is a term deposit which is held over fixed period at fixed rates of interest. Company Fixed Deposits are offered by Financial and Non-Banking financial companies (NBFCs). The maturities of various company fixed deposits can range from a few months to a few years.

A government bond is a debt instrument issued by the Central and State Governments of India. Issuance of such bonds occur when the issuing body (Central or State governments) faces a liquidity crisis and requires funds for the purpose of infrastructure development.

 Fixed-rate bonds

Government bonds of this nature come with a fixed rate of interest which remains constant throughout the tenure of investment irrespective of fluctuating market rates.

The coupon on a Government Bond is mentioned in nomenclature. 

• Income Tax Return Filling (Individual, Partnership Firm, Private Limited Companies).
• GST Registration and filling of GST Returns.
• New & Correction in PAN Card Apply.