Saturday 24 November 2018

Personal finance wrap: Steps to create a viable long-term financial plan; How balanced is your mutual fund portfolio?


Having a well thought out plan on money issues is a must for creating longterm financial security. However, not everyone is adept at dealing with money matters. Though financial planning may sound daunting to many people, it is not as difficult as it seems. The starting point is to know the steps one should take in creating a viable financial plan.

Among the many issues is assess one’s risk taking abilities and progress on the plan accordingly. For example, a mutual fund may be suitable for someone but not be suitable for another person.

The next is to set out some goals for oneself for which the money has to be saved and invested. This needs evolving a definite strategy.

Here are 5 steps to take to have a viable financial plan.

Investing in mutual funds is gaining popularity with rising inflows. A major of mutual funds is that with their wide array of offerings they help investors diversify their portfolio across asset classes in order to reduce the overall risk. One of the basic tenets of investing is not to concentrate one’s investment in one asset class but to divide in among a variety of asset classes. In such a scenario, the positive effect of growth in other asset classes will offset the negative effects of downfall in one asset class.

If you have been investing in mutual funds have you assessed whether your portfolio is diversified enough to minimise your risk? Read to know how to look at a portfolio to understand whether it is diversified enough.

Credit rating agencies play a crucial role in helping investors make investment decisions on debt issuances. Their ratings point out the quality of the issuing company and how likely it is able to honour its repayment capacities.

However, many retail investors do not take note of the rating assigned since they are unable to understand their implications.

Credit rating agencies (CRAs) assigns ratings after assessment of financial services companies by analysing risk parameters. Here are some of the risk measures you should know that CRA takes into account while analysing a company’s profile.

Life is full of uncertainties. An untimely death of a bread earner or any burglary home can cause huge financial loss. To minimise the risk of financial loss, your insurance coverage should offer protection for not only your possessions, income but also, for the loved ones you will someday leave behind.

Thus, it is better to safeguard yourself from these risks by transferring them completely to an insurance company. Here are five important insurance products which everyone should have during the lifetime to protect themselves and their family.

With rising incomes, more and more Indian are travelling abroad each year. A must-have thing in your travel kit is a travel insurance cover which would protect you and your family from health emergencies during the trip. Travel insurance can also cover emergency evacuations to the nearest and best hospital, while it covers incidents like baggage loss, baggage delay, trip delay, trip cancellation, etc.

In an interview to Moneycontrol, Parag Ved, EVP and Head Consumer Lines, Tata AIG talks on the importance of having travel insurance, benefits of multi-trip travel insurance, travel insurance for senior citizens travelling abroad and more.

This week we reviewed Aditya Birla Sun Life Tax Relief 96 which was launched on March 29, 1996. The AUM of the scheme as on October 31, 2018 is Rs 6,480 crore. It is an open-ended ELSS that provides an opportunity to save tax while growing your money through equity investments.

The objective of the scheme is longterm growth of capital through a portfolio with a target allocation of 80% equity, 20% debt and money market securities. Read to know whether you should use the fund for investing for tax planning and capital appreciation.

We provide you sure shot Commodity & Equity Market Tips, Intraday tips, share market tips, Mcx bullion tips, Mcx tips, Stock tips, Future and Cash tips with Technical & Fundamental Research.

Contact us @ +91-9644405056




No comments:

Post a Comment