Investment Strategies of an Investor

That is why it is important to be clear of what your investment goals are and what kind of appetite you have when it comes to risks in financial decisions. The best investment plan starts with having absolute clarity with regard to your own financial circumstances and your goals, and the kind of time frames that you would want to commit to.

Investment Time frames: In general, investment plans could be categorized into short term, medium term and long term. You could compare plans in terms of their duration, where the short term option could be anywhere up to three years long, the medium term that could go on for 4 to 6 years, and the long term ones lasting for over 7 years

The popular options in these plans include mutual funds, fixed deposits, government bonds, post office savings accounts, investing in public provident funds, opening fixed deposits, and investing in gold. And in line with the modern times of communication technology and internet, it is also a safe bet – and certainly an easy option – to go in for an online plan that takes good care of your finances, operating within the constraints of your investment needs, income status, and risk appetite.

Risk of Returns? Whether you choose to invest the traditional way or you would want to check out the convenience and advantages of an online plan, you do have options. However, it is important to note that there may not be a universal solution that could be termed the best investment plan For instance, even within the category of mutual funds, you could choose among debt, equity, and hybrid funds that have a mix of debt and equity in them. The difference, as you would guess, is in their risk outlook, and in your own appetite for risk in investment

Another form is the Public Provident Fund, which has the advantages of being safe havens in terms of investment, and being attractive in terms of returns. More importantly, you may also gain from income tax exemptions. While Fixed Deposits are the traditional, safe ways of going about your investments, those who would want to venture out into the world of stocks and have a flair for corporate affairs may find themselves excelling in IPO’s – IPO’s lead the way in online too!

As you may note from the discussion, your best bet in terms of investment would be to compare investment plans after you have done a bit of soul-searching as to what you would want and how you would want your returns to pan out in the world of investment.

Leave a Reply

Your email address will not be published. Required fields are marked *