Thursday, January 3, 2019

Must Have an Investment Plan

Have an Investment Plan, Money
Like maximum of the people you too have habit of saving some part of your earnings and investing that saving for future purpose. This is a good but it is found that maximum of people make investment but they don't have an investment plan. Hardly a few people are found to be having an investment and you might too fall in the category of the people who don’t have an investment plan.

Why an Investment Plan?

Planning is essential for success in any endeavor or work. Truly speaking investment is an adventure. Do you think that you can reach to your goals without any plan? Do not you plan your journey? Do not you plan your future? I think your answers to these questions will be yes. So why not to have an investment plan for your hard earned money. Always remember that it is your money that will help and assist to realize all your future plans and dreams.

So what is an Investment Plan?

Investment plan is a written plan about all the investment activities and strategies that you will undertake for the period under consideration. It should be clear that a person must have an investment plan for succeeding the financial plan. Also an investment plan is useful only for defined period not forever and investment plan should keep on changing with time.
An optimal investment plan must include everything from amount of money to be invested, type of assets (mutual funds, equities, ULIP and bonds etc) in which to invest, risk, time horizon, expected returns and expected losses before you will sell the assets and the periodic review. This may look like very conservative approach of investing but when you start investing with this way you will find the benefits of the approach as this will ensure that you are not losing your money or capital. This might seem to be strange but it works like panacea.

An investment plan is imperative before you invest into any kind of assets. And that too you must write it down on a paper beforehand when investing as when assessing the investment values and time horizon, the clear picture will be in front of you. Writing a proper investment plan is as important as investing and choosing right asset classes. 
So you must have an investment plan.
Happy Investing.

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