Most people mistake financial planning for the child to mean transferring capital in the child's name. This is neither necessary nor enough. Our child is still a child and he or she doesn't have the capacity to make proper financial decisions. So it is we who must make these on his or her behalf by making optimal use of the instruments at our disposal. In fact, it is prudent practice to invest the funds in our own name, earmarking the capital for the child, as and when he or she may need it in future. Only bear in mind that, the money is our child’s money. If we invest it well, it our child who will benefit. Investing for a child is no different than investing for our self.
One should try to maintain a good mix of liquidity & flexibility. Ensure a good asset spread, which provides adequate safety and growth. For a medium risk person, a spread of 40:60 or 60:40 in debt to equity is acceptable. Here are some equity or hybrid type instruments, where one need to be very careful while selecting the scheme. There is little bit of risk involved while handling these instruments.
 | ||
Pure or Direct Equity (Stocks): This is an option used by knowledgeable investors. The advice here is not to enter into stock market by your own. Also, never, never, listen to anyone's tips. That's a sure fire way of losing money. The procedure to invest in Equities is by keep on investing and accumulating good quality stocks with long-term track record and with a very good growth opportunities in smaller quantities over a period of time. Do a thorough study of the stock picked and keep an ear open to any kind of news about the stock. It has been proven that equity investments have outperformed any other asset class. However, it comes with associated risks.
The basic risk in investing direct equity being the investor getting carried away and start buying stocks with short term focus or on hot tips. The investor should be clearly focused and should buy only with long term focus and only growth and quality stocks and irrespective of whatever happens to the market should not get carried away.
Mutual Funds: Also known as diversified equity funds .These are the extremely flexible instruments that offer the optimum mix of return, risk, liquidity and tax-efficiency. There is a disciplined approach, the Systematic Investment Plan (SIP) , where one can invest as little as Rs 1,000 monthly and the investment would be automatically done on our behalf. One should carefully choose a basket of schemes, which should be a combination of debt and equity investments. More of equity means more risk.
There are enough mutual fund schemes available in the market to meet each and every need of an individual with a various risk appetites. One can invest the proposed 1 lakh between A 40% in a safe mutual fund where the spread is more in the debt portion and risk grade is low A 20% in a steady returning mutual fund where the spread is equal in both debt and equity portion and risk grade and return grade both are average.A 40% in a high growth mutual fund where the spread is more in the equity portion and return grade is high.
Commodities: This is a traditional way followed by Indians for investment. These days, where commodity rates are touching highs and highs every day, especially gold and silver, this is one of the best way to invest. But bear in mind, investing in gold and silver does not mean buying ornaments. One has to go for Biscuits or Coins.
Here is just a guide that gives an overall picture of all the instruments available for the investment. A knowledge from books, net and experience. It is wise to consult professional financial adviser before making any investment.
Hiç yorum yok:
Yorum Gönder