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 The investor has also withdrawn money from equity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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