What is investment planning?

A good income does not give you financial security. Financial security comes when you invest your money in the right investment options that align with your future goals.

How you can do investment planning?

Investment planning will ensure you attain your financial goals through the right investment options. By devoting a little time and effort you can speed up your journey and attain your financial goals faster.

Investment planning means saving a part of your income and investing them in securities as per your risk-bearing ability. Thus, if you are a risk-averse investor your portfolio with consist more of debt instruments or fixed income securities. Here are some financial instruments you might consider:

• Public Provident Fund
• 5-Year Bank Fixed Deposits
• National Savings Certificate
• Post Office Monthly Income Scheme

Similarly, if you like to take risks, then your portfolio will contain more equity-related products and fewer debt securities. Thus, you can aggressively grow your funds and achieve your goals faster.

Why we must plan our investments?

• Emergency Funds: Instead of spending all your money, you can set aside a sum every month for emergencies, allowing you to avoid borrowing money or feeling stressed during such times.
• Meet Financial Goals: By planning your finances and channeling your savings in the right direction, you can achieve your life goals effectively.
• Increase Your Wealth: Planning your investments benefits you in both the short and long term. Aligning your investments with your future goals helps build a substantial corpus, saves taxes, and meets your financial objectives with ease.
• Tax Benefits: Investing in tax-saving schemes like ELSS, NPS, and PPF allows you to compound your money while also saving on taxes through strategic planning.