Wednesday, January 1, 2014

Important things to complete before investing

Few  small  but important things before investing


Wish a very happy and prosperous new year 2014 to all of blog reader and investors. Let us take a closer look to 2003 to assess about the performance of various asset classes. After 6 year wait, nifty and sensex have broken their last high this year and delivered the positive return. Gold has posted its biggest loss since 1981 but the intensity of declining price was low in India due to weak rupee compare with rest of world. Real estate has also witnessed a slowdown during this year. The investor has also withdrawn money from equity mutual fund also and shifted towards fix return like product  like bank FD, company FD, govt. tax free bond etc. Inflation also has remained high side during the most of the year.

Most of my friends and investors are asking about where to invest in 2014 and which asset class going to deliver highest return. Most of us ignore some small but very important step before investment. We make big financial future goal and spend a lot of time on the research report and expert advice for investment. Before investment there are few things which everyone must address. Investing is not about to only picked some best sector stocks or mutual funds or bonds scheme. Many people want to talk only about inflation figure, interest rate movement or gold return.

There are some points which you should complete before a single money investment:

  • Go for online bank account facility. It would be good if you have separate account for income and expenses.

  • Open a demat account even if you do not interested in shares trading. Now in demat account you can manage your mutual fund units, insurance policies and bond also.

  • The other important thing is to compile KYC (Know your client) norm. For mutual fund it is compulsory for almost any investment.

  • All address proofs, ID proofs and other important docs like bank cheque book, insurance policy, your photograph etc should be keep safe and in properly.

  • Try to do maximum things online as it is time saver and quick and help to find your networth quick

  • At last very important, keep a track of income and expenses (cash flow), asses your liquid position, do provision for some money for emergencies, buy a term insurance and health policy according to need before a single rupee investment.

Once again my best wish to all of you for good financial health and physical health on the eve one year 2014. For more detail and any other query related investment, you can contact me through my email.

Warm regards,

Arvind Trivedi
Certified Financial Planner

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