Declining Gold Prices

Biggest Fall in Gold Price

Yesterday, India has witnessed a biggest single-day fall in gold prices in 2014. The gold price has gone down up to Rs 800. The price has fallen after RBI eased import restrictions of gold. RBI had imposed severe restrictions on gold imports to reduce current account deficit (CAD) and control the sliding rupee in July last year.

In Mumbai, the gold price has dipped to Rs 27,840 per 10 gram. In world market, since last year the gold prices also has declined around 35% from 2000$ to 1300$. In India, due to weak rupee and import restriction the falling effect was not so intense. It may further go down till Rs 25,000 – Rs 26,000 level in near term if rupee get strong in next couple of months.

I have always written in my past articles that never over invest in this asset class. I still advise that do not invest more than 15% of your saving in the gold. In our Indian tradition, the gold needed in various auspicious occasion like birth, marriage etc. Only purchase as much gold as you required for those occasions and the rest of saving invest in equity and debt according to your financial requirement. My final word is on gold investment to stay away from it and keep investing in other asset classes.

If you want more information regarding investment or you have any other query about investment feel free to ask us.

Warm regards,

Arvind Trivedi

Certified Financial Planner

arvind.trivedi79@gmail.com

www.artofinvest.com

www.arvindtrivedicfp.blogspot.in

Asset allocation : Importance in financial planning

Asset Allocation : How much Important..?

This word is very familiar in today’s investment world but often the investor or general public confuse or not very clear about it. The main purpose of asset allocation is to minimize the risk involved in achieving a target return or maximize returns with managing risk in prudent way. Asset allocation works on a very famous proverb “Don’t put all your eggs in one basket”. It also play very vital role in any comprehensive financial planning.

We have mainly these types of investment assets:

• Cash
• Equity
• Precious Metal
• Real Estate
• Bonds

Among many of the the asset classes, mutual fund provide the well diversification and professional management. Asset allocation through mutual funds gives you the opportunity to get maximum benefit through diversification and reduce overall portfolio risk. Mutual funds provide better asset allocation in cash, equity and bonds asset class.

Before making any strategy to achieve long term financial goals through asset allocation there are some important points given:

• Asset allocation helps you to make fine balance between return and potential risk. It provides also a disciplined investment plan.

• It also protects your portfolio against declining market through rebalancing and diversification.

• The most important thing is that your personal asset allocation strategy may not similar than others. The financial goal and risk appetite different for person to person. It based on mainly your age, risk tolerance level, liquidity needs and time horizon.

• Please remember that asset allocation does not guarantee the best return but it offers the balanced return with managing the risk which is good enough to take care of your all future financial needs.

• The main aim of asset allocation or financial planning is to achieve your future financial goal and peace of mind. It is not much important that gain a maximum return from the investment but to achieve a peace of mind with achieve a financial goal through risk management.

For more detail and any other query related investment, you can contact me through my email.

Warm regards,

Arvind Trivedi

Certified Financial Planner

arvind.trivedi79@gmail.com

Some Important Points for Investors

Since last 4-5 year the retail investor has been losing money in equity market as market is not performing well. But not only in equity the so called advisor are fooling the investor from last so many years. I have earlier written so many times in my blog that if you have not much time and knowledge about market or investment please find a well knowledge filled financial planner. Set your financial goal and save before spending. Here I am sharing some basic tips which is very important for every investor before taking investment decision.

The most important thing is to protect your capital first. Take moderate risk for getting decent return. It is said that high risk give high return but before taking high risk assess your age, need and goal.

Never expect unrealistic return. Always try to get the return above average of the particular investment category. You cannot compare a single script return with any type of equity mutual fund. If anyone tell you about extra ordinary return please beware and alert before investing. I want to say only that keep reasonable expectation from any investment avenue.

Try to well diversify your investment portfolio according to your investment horizon and risk appetite. A well diversified portfolio reduces loss in other word say never put all eggs in one basket. Diversify your portfolio among different asset classes.

Keep away from any market rumors or news hype. Give proper time to your investment to grow. The process of investment is like sowing seeds. It need proper time to grow according to investment avenue. There is no rocket science to get multi-times return in short period.

There are other important things regarding investment which you will know in coming blogs. If you have some query about investment or financial planning please contact feel free to me

Regards,

Arvind Trivedi

Certified Financial Planner

arvind.trivedi79@gmail.com