The Best Smart Investment Plan for 2018: Stocks|| Mutual Funds|| Gold || Currency

We are in the 21st Century where everything is becoming SMART like Smartphones, smart cities, Smart Tv etc. Then why not we make a Smart Investment Plan for good Return, Safety, and Liquidity. Don't you think it is a good idea? Of course, there are many investment products available in the market which can give you good return depending upon the various factors involved. Gold, Currency, Fixed Income, Mutual Funds, Stocks and Real Estate are the most common investment products where people invest as per their financial capability. But one should have a smart investment plan so that their investment remains safe and gives a good return in a short period of time.

At present the investment market scenario especially the equity market has become very volatile and oversold compare to previous years and so mutual funds. Real estate has become stagnant for the last five years and Fixed Income interest rates have been reduced from almost 9% to 6.5-7%. The investment market has become very complex and it's not an easy task to decide where to perk the surplus fund.

Smart Investment plan Stocks, Mutual Funds
 Smart Investment Plan for 2018: Stocks|| Mutual Funds|| Gold || Currency

Also, read our article Is your money lying idle at bank account? Here is what you should do

In this situation, one should make a Smart Investment Plan to invest the surplus fund so that one can get good return safely and in the stipulated time frame.

How to make Smart Investment Plan: Let us follow the 4 steps first

1. Fund Allocation:- Firstly one should allocate fund for investment. The fund should be a surplus of his daily or monthly needs. It should not be taken on loan or on credit.

2. Time Frame of Investment:-Once the investor allocate the fund then the 2nd step is to decide the time frame, how long one can invest the fund for e.g 3 months/6 months/1 yrs/3 yrs etc

3. Return Expectation:-The third step is the return expectation, how much return the investor is expecting from the fund.

4. Risk Taking Capacity: -The fourth step is his risk taking capacity, as we all know high risk earns a higher return. If the age of the investor is between 25-35 the investor can take more risk then a person at the age group of 50-60 years old. Similarly, if an investor is 30 yrs old with 3/4 dependents can take less risk then an investor having no dependent and zero liability at an age of 50 yrs. So one has to check his risk taking capacity and categorized them in three groups like high, medium and low.

Once the above four steps of Smart Investment Plan is decided, the investor should select the investment product as mentioned in the table below:

SL No. Smart Investment Steps Client Profiling Investment Product Selection
1 Fund Allocation 1L Real Estate not possible
2 Time Frame of Investment 3 yrs

3 Return Expectations 10.00% Fixed Income & Gold not possible
4 Risk-taking Capacity Medium Currency not possible

Conclusion: Solution for The Best Smart Investment Plan

Based on above one can easily find out the investment product for e.g one cannot go for Real estate, Gold & Fixed Income because the first one requires huge capital and second one's return is low not as per his expectation. As his risk taking capacity is medium so the investor should choose either Equity, Currency or Mutual Funds. As currency is unpredictable and already raised at all time high now it is again not advisable at present.

So the investor has only two option left one is Equity and Mutual Funds.

The equity market is oversold at this point of time so it is advisable to invest in at least 60% in Equity and balance 40% in Mutual Funds through SIP route in Debt and Equity combination portfolio. I think this way one can chalk out his own Smart Investment Plan which can give a good return, safety, and liquidity.

If you like the article please share with others.

Happy Investing !
Finogyan Team
The Best Smart Investment Plan for 2018: Stocks|| Mutual Funds|| Gold || Currency The Best Smart Investment Plan for 2018: Stocks|| Mutual Funds|| Gold || Currency Reviewed by Finogyan on October 12, 2018 Rating: 5


Nifty and Bank Nifty trend for next week (16th-20th Sept)

Nifty and Bank Nifty Trend

Powered by Blogger.