06 Jul 2019
Concept of Investment & Financial Planning
By Umesh Sharma
Posted on 06 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:
- Future Goals and Objectives
- Ability to take risks (depending on income/age)
- 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 Return, Risk, and Liquidity profiles.
By Umesh Sharma
MBA with 20 years of experience in Banking and Financial markets with expertise in marketing, administration, sales and training. He is working as Director, of marketing operations and wealth management in NIWS. He always innovates new ideas with a positive attitude and long-term vision, making him a key asset to the team NIWS. He is of firm belief that one can achieve goals by ethics, integrity and passion.