Let me list down simple things that everyone must try and do.
Let me list it down as simple financial plan.
- Get a term plan (atleast 5 times your yearly income)
- Have an emergency fund (in some liquid MF)
- Invest in fixed deposits (like FD/NSC etc)
- Create a PPF account for long term plans and invest yearly
- Check your asset allocation and do put some form of gold in your portfolio (physical,MF,ETF)
- Invest in equity MF (use sites like www.valueresearchonline.com, www.morningstar.com etc)
Remember, equity returns will always outperform fixed return schemes
- If you can understand the market, invest in Stocks directly
If you can't understand market and don't want to take the pains to go through sites to look at MF ranks, just but index MF/ETF
Do the above and atleast you are better off than no plan at all.
What do you think?
Let me list it down as simple financial plan.
- Get a term plan (atleast 5 times your yearly income)
- Have an emergency fund (in some liquid MF)
- Invest in fixed deposits (like FD/NSC etc)
- Create a PPF account for long term plans and invest yearly
- Check your asset allocation and do put some form of gold in your portfolio (physical,MF,ETF)
- Invest in equity MF (use sites like www.valueresearchonline.com, www.morningstar.com etc)
Remember, equity returns will always outperform fixed return schemes
- If you can understand the market, invest in Stocks directly
If you can't understand market and don't want to take the pains to go through sites to look at MF ranks, just but index MF/ETF
Do the above and atleast you are better off than no plan at all.
What do you think?
1. The emergency fund should typically be close to 3 months of your average monthly spend.
ReplyDelete2. Instead of NSC and FD, a better option is good rated debt funds from which you can get the returns that are at par or better than the FD/NSC interest rates, but have a better tax treatment.