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Investment-Planning

Investment-Planning
Investment-Planning

Investment-Planning

Investment Planning is the process of identification of your financial goals and objective as well as achieving them through a solid plan. An investment plan should be strong enough to build up your future stronger. You can also say the investment plan is a layout plan for your bright future. Everybody wants to make good and successful investments so that they can become secure and wealthy. For attaining your achievement towards the best investment plan you need to consider some important factors as an investment decision is very wide and somewhat scary. If you couldn't able to put your money in the right place then it can be risky for your future, PLease find out the factors to be considered:

Know your current financial status

This is the base on which you will make the building of your dreams. It is the first step because until you are not aware of the truth of your financial status, you will not be able to make any successful investment plan. Making a plan is not a tough job but implementing the planning into a real benefit is a challenge. Financial status can be categorized by the below points :
  • Regular income sources
  • Variable income sources
  • Growth changes in your current employment
  • How much cash you are sitting on
  • How much debt you owed
  • Further debt requirements in short-run
  • Your financial responsibilities

Identification of financial goals and objectives

Identification of financial goals and objectives is the second important step while moving ahead to financial planning. Your goals for anything means the result you would like to achieve in a specified time limit and objectives are the actions that help you to achieve that goal. For instance: your financial goal can be to increase your return on investment to double or paying off your debts or buying a house while objectives can be the sources of income which helps you to achieve these goals like changing the job with salary increment or investment you made which can give you a good return to fulfill your goals.

Check your goals with available sources of funds

Checking your goals with available sources of funds is a very crucial step as it is the second step towards your dream goal. Suppose you have your goal to buy a house in 2 years then how much money you have right now and what growth prospects you see in carrier point of view and how much realistic your dream is. Compatibility between your goal and available sources of funds is very much required. Suppose you want to buy a bungalow in 2 years and you have only 5 lacks in your pocket then this dream is unrealistic according to the specified period of time. To make your investment planning successful you need to make realistic plans.

Risk-taking capability

Your risk-taking capacity means that how much risk you can take with your investment profile.
The more in risk your investment is, the better the chances of return, the more the investment is safe, lesser is the return. Here come many things like if you are a risk-taker, then you should go with equity or mutual fund investment and if you are a risk-averse person, then you can keep your investments in the traditional way like FDs, NSC funds or post office schemes, etc.

Go through all investment tools with their pros and cons

By going through all the avenues of investment, we should be able to decide what would be the best tool for us which satisfied all the above conditions.
Investment tools are financial and non- financial:
Financial tools are direct equity, mutual funds, bonds, FDs, NPA, etc.
Non-financial tools are real estate, gold, silver, etc.

Take the advice of a financial expert or any fund manager

The final step toward your financial planning is after deciding what you want to do with your money just take the help of any good expert to make you double sure that this is the best for you and it will bring the best to you.

Also, read https://bijimoney.blogspot.com/2020/06/confuse-between-investment-tools.html
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I have started this blog to educate people regarding saving and investment of their hard-earned money wisely to become big, investing decisions play a very important role in our life to meet our retirement expenses and brighten our future.

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