FAQs on planning individual investments

financial planningMost individual investors in India today invest their money in the public provident fund, post office schemes or even worse, simply leave their money in their salary accounts where it only loses the tough war against inflation. In the long run, these investment habits are what make people unable to meet their financial goals in time.

However, it is the lack of knowledge and a fear of being duped instead of a conscious choice due to which most individual investors invest in such a ghastly manner today. The bitter truth today is that markets in India are still investor unfriendly and jargon as well as bad agents can make investing feel like a tough labyrinthine game to navigate.

Through this post, our online experts bust a few common myths about investing and get you cracking on how to get started and invest in a way that meets your goals. If you don’t have the time and/or energy to read up on investing, our basics will get you started and with the help of your financial planner, you’ll be on your way.

The first myth that needs to be dispelled is that you are probably too young and it is probably too early to plan for events that are to happen years later. With increasing delay is a rapidly diminishing prospect of earning high returns. Another advantage of starting early is that doing so shall enable to save and achieve your targets easily without the pain of making lifestyle changes.

Myth no. 2 that needs to be prevented from factoring into our investment decisions is that you should put all your money in shares because the XYZ person you know did so and earned great returns. Sudden large returns are rare and hard to come by. Higher returns entail greater risk. Investing is all about balancing risk and return as per your abilities and needs. For example, a younger person with fewer responsibilities may invest a greater proportion of his/ her income in equities, but never all of it. Which brings us to our next myth.

The most commonly prevailing myth among most individual investors today is “I don’t need a financial planner. I’m perfectly capable of making and managing my own investments.” Having a well-diversified portfolio ensures that the poor performance of some instruments are offset by the gains in others. Financial planners invest in a range of instruments appropriate to your levels of risk and required return, assure that your portfolio is well-diversified and thus well-protected and take all the paperwork off your hands.

In case of queries, contact our online expert financial planners at Querease.com.


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