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Concept of Investment & Financial Planning

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Concept of Investment & Financial Planning

Concept of Investment & Financial Planning

Umesh Sharma 6 Jul 2019

Money Earned – Money Spent = Savings  (converted)       Wealth 

(Market Dependent)investment

The gap to convert Savings into Wealth is called Investment (Independent of Market).

Saving is a component of many variables. However, Investment depends on three critical factors:

  1. Future Goals and Objectives
  2. Ability to take risks (depending on income/age)
  3. Time to Attain Goals

To gain expert knowledge about the share market classes in Jaipur, you need to seek guidance from experts so that you can share your trading skills.

A person's Goals and Objectives are essential; hence, Investments must be made based on careful planning. The amount invested in each asset class should be aligned and prioritized based on the abovementioned parameters.

The longer the time frame of your goals, the greater your risk-taking ability. Hence, during the initial tenure, you would allocate more to risky assets (equity, real estate) and gradually realign later in fixed-income instruments as per your goal to reduce the risk when your goal is near.

Once the allocation is done, the next step is to revisit the portfolio, which needs to be realigned and benchmarked based on ReturnRisk, and Liquidity profiles.

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