Yesterday, we considered How to start investing in equity Today, let us discuss what should be the first mutual fund for a young earner or for new mutual fund investors. The financial services industry makes a big deal out of risk profiling. You cannot take theoretical answers about market volatility and provide investment advice on that! The true risk appetite of a person is revealed only when the market crashes.
This weekend, in a two-part re-assemble series posts, let us consider: (1) How to start investing in equity and (2) what should be my first mutual fund?. The transition from the comfort of fixed income to volatile equity can be quite dramatic. I discuss simple getting-started ways for investors new to equity.
Investors make two big mistakes when it comes to equity
1: Forgetting about asset allocation (how much is invested in equity and how much in fixed income)
All of us dream. Some of our dreams are serious enough to become goals and like it or not, many dreams are financial. That is they require money to implement. Here are three key factors that decide how well we can achieve our financial goals. Although each individual is different, there are some similarities. This post is inspired by a discussion with fee-only SEBI registered investment advisor Swapnil Kendhe.
We discuss how to create a retirement income plan with 27-year old Amar as a case study. We shall consider asset allocation for each year of investment before and after investment and how Amar can derive an inflation-protected income and be financially free after retirement. This is step 11 of Re-assemble, a series on the basics of money management aimed at beginners and young earners. The full list of steps with links can be found below.
This is part one of an investment planning case study in which we consider how to create an investment plan step by step using real data obtained from readers belonging to different age groups. This is step 10 of Re-assemble, a series on the basics of money management aimed at beginners and young earners. So far we have covered 9 steps and all set to move on to investing – with a clear purpose. In step 10 of re-assemble, let us consider an investment planning case study and learn how to create an investment plan. Before that here is a brief summary of all Re-assemble posts.