When the Bulls are in charge...

As the markets started going up riding on FII cash flows, what is in for the Financial Planning?

Comparatively more rate of return in a longer period is given by Equity. It accompanies High Risk also. Risk reduction is important to ensure the achievement of goals in life, be it Setting up a business, Getting married and establishing family, Children's Education, Their marriage, Protection against Loss of Life and Assets, Creating Income Earning assets for for Retired Life, Asset Distribution( Charity & Estate Planning) etc.

So tame equity to your benefit. Directly investing may prove costly for those who do not have the expertise, money and time to constantly evaluate the equity markets. Mutual Funds are the best to harness here. Equity comes with different risk level. Mutual Funds make portfolios that could be of your taste. Go for SIP than lumpsum investments. Get the power of compounding do the job for you. And as a final caution: MFs remain at same risk-return level all through out their life. Not your life. So when you reach milestones in your life, you have to offload your MF schemes and move to your preferred asset classes for rest of your life. For example a 40 year old bought UTI Mastershare-86 during its launch. In 2010, he is 64 years meaning retired. He has to take a call whether he has to further remain in that scheme or move to MIPs either from MFs or PO or Banks depending upon his life needs.


Real estate gives a certain amount of inertia to your wealth - the much needed anchoring could be in the form of your residence to begin with and later a farm house or additional number of dwelling units that give income as agricultural income or rental income as the case may be.


And if you are a NRI, you can look at many alternatives

For a domestic investor, lot many opportunities are available. Get out of 'avanavan kadampa' - self imposed restrictions or myths of investment. One can build wealth legitimately, systematically and improve from status co.

happy investing India