Investment Planning – How to Make a Voice Investment Plan?

Investment planning is one of the important aspects of financial planning. The probability of achieving your financial goals depends on how well you are planning your investment.

What is investment planning?

Investment planning is the process of placing your money / funds into the right investment vehicle based on your financial goals and the time frame to achieve it. How much risk you can take is also an important point here.

We usually give more interests for returns than goals. Example – You get a bonus of Rs 1 Lakh then the first question that might appear in his mind is – “Can I get a 10% refund if this 1 lakh is invested in XYZ products?”

The opposite should be ‘for where I want to invest this RS 1 Lakh?’

Investment planning process:

So, how should I plan an investment? Is there a better approach?

Identify your financial goals: These goals can buy a house, plan children’s higher education etc., you can sort it as a high, medium and low priority destination.
Analysis of how much risk you can afford: You are the best judge for yourself to decide how much risk you can take on your investment. There are certain psychometric tests that can be used to measure your risk taking capacity. The risk profile can be aggressive, medium and conservative.
Identify the time frame for your purpose: You can divide the goal based on duration as short, medium and long term goals.
Identification of Financial Products: Now based on the above points, identification of financial products that suit your needs.
Investment planning – important points for reflecting:

Dynamic process – Investment planning and financial planning are ongoing processes. This is not an event once. Your purpose and economic profile can continue to change. Thus, accommodate your investment.
Realistic – Try to set the number of goals in a realistic way. Consider various factors such as your future revenue growth, job stability, savings rate, etc., the aim must be achieved.
Taxation – While identifying investment products, you can check whether they save tax or not. But don’t buy it just to save taxes. Consider buying it only if they meet your needs. Also, find out a tailored tax return for each product.
Re-balancing & re-allocation – not only your priority changes over time period but also financial market conditions. Tweak your investment portfolio according to changing conditions.
Tracking & Monitoring – Maintain portfolio tracker to stay up to date on your investment performance. (You can create a portfolio tracker at
Diversification – Investment identification in the asset class. Spread your risk. Don’t invest in one product category.

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