Last Updated on September 4, 2018 at 10:19 am
Here are ten questions that every investor should answer. I have inserted links to relevant posts for some questions.
If you are DIY investor or intend to be one, ask yourself these questions. If you have engaged a financial planner, ask these questions to the planner .
If you have any suggestions that would help us all answer these questions better, I am all ears.
A suggestion: please copy these questions on a word processor and answer them. Include relevant links etc.
Join over 32,000 readers and get free money management solutions delivered to your inbox! Subscribe to get posts via email! 🔥Enjoy massive discounts on our robo-advisory tool & courses! 🔥
Here goes:
1) Have I listed all my financial goals, categorised them as per duration and decided on suitable asset allocation for each goal?
2) Have I determined how much I need to invest for each goal as per the intended asset allocation?
Related posts: A Step-By-Step Guide to Long Term Goal-Based Investing
3) Have I determined how much I can invest for each goal and begun investing?
4) Do I have a plan to tackle the shortfall in the investment amount?
5) Is my portfolio diversified across asset classes and diversified within each asset classes?
6) Am my monitoring my investments month by month? Am I maintaining a schedule?
Related posts: Monthly Financial Tracker
7) Am I monitoring my net portfolio value and returns for each goal at least once a year? Do I know if I am on track wrt each goal and if not, have I determined the cause? If my goal is to build wealth, am I tracking the CAGR and taking steps to
Related posts: Automated Mutual Fund and Financial Goal Tracker
8) Do I know how to measure risk of an instrument or portfolio? Do I understand the idea of risk-adjusted return? Do I understand the importance of downside protection?
Related posts:
Simple Steps to De-risk your portfolio
Understanding Risk–Adjusted Return
9) When do I exit a poor performer? Do I look at only returns? Do I look at the nature of the holding and make a call? Am I tracking the holding month by month (eg, mf portfolio)?
Related posts: Mutual Fund Risk and Return Analyzer
9) Do I know the importance containing portfolio volatility? Do I know the importance of rebalancing?
Related posts: The What, Why, How and When of Portfolio Rebalancing With Calculators to Boot
10) Am I going to be a ‘buy and hold’ investor or am I going to use ‘tactical asset allocation’? If I am going to make tactical calls, have I decided on what basis am I going to act? PE ratio, PEG ratio, FearGreedIndex, GDP? How am I going to ascertain the ‘state of the market’?
Let me add one more which can be handled down the line.
🔥Enjoy massive discounts on our courses, robo-advisory tool and exclusive investor circle! 🔥& join our community of 5000+ users!
Use our Robo-advisory Tool for a start-to-finish financial plan! ⇐ More than 1,000 investors and advisors use this!
New Tool! => Track your mutual funds and stock investments with this Google Sheet!
We also publish monthly equity mutual funds, debt and hybrid mutual funds, index funds and ETF screeners and momentum, low-volatility stock screeners.
- Do you have a comment about the above article? Reach out to us on Twitter: @freefincal or @pattufreefincal
- Have a question? Subscribe to our newsletter using the form below.
- Hit 'reply' to any email from us! We do not offer personalized investment advice. We can write a detailed article without mentioning your name if you have a generic question.
Join over 32,000 readers and get free money management solutions delivered to your inbox! Subscribe to get posts via email!
About The Author
Dr M. Pattabiraman(PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. He has over ten years of experience publishing news analysis, research and financial product development. Connect with him via Twitter(X), Linkedin, or YouTube. Pattabiraman has co-authored three print books: (1) You can be rich too with goal-based investing (CNBC TV18) for DIY investors. (2) Gamechanger for young earners. (3) Chinchu Gets a Superpower! for kids. He has also written seven other free e-books on various money management topics. He is a patron and co-founder of “Fee-only India,” an organisation promoting unbiased, commission-free investment advice.Our flagship course! Learn to manage your portfolio like a pro to achieve your goals regardless of market conditions! ⇐ More than 3,000 investors and advisors are part of our exclusive community! Get clarity on how to plan for your goals and achieve the necessary corpus no matter the market condition is!! Watch the first lecture for free! One-time payment! No recurring fees! Life-long access to videos! Reduce fear, uncertainty and doubt while investing! Learn how to plan for your goals before and after retirement with confidence.
Our new course! Increase your income by getting people to pay for your skills! ⇐ More than 700 salaried employees, entrepreneurs and financial advisors are part of our exclusive community! Learn how to get people to pay for your skills! Whether you are a professional or small business owner who wants more clients via online visibility or a salaried person wanting a side income or passive income, we will show you how to achieve this by showcasing your skills and building a community that trusts and pays you! (watch 1st lecture for free). One-time payment! No recurring fees! Life-long access to videos!
Our new book for kids: “Chinchu Gets a Superpower!” is now available!
Must-read book even for adults! This is something that every parent should teach their kids right from their young age. The importance of money management and decision making based on their wants and needs. Very nicely written in simple terms. - Arun.Buy the book: Chinchu gets a superpower for your child!
How to profit from content writing: Our new ebook is for those interested in getting side income via content writing. It is available at a 50% discount for Rs. 500 only!
Do you want to check if the market is overvalued or undervalued? Use our market valuation tool (it will work with any index!), or get the Tactical Buy/Sell timing tool!
We publish monthly mutual fund screeners and momentum, low-volatility stock screeners.
About freefincal & its content policy. Freefincal is a News Media Organization dedicated to providing original analysis, reports, reviews and insights on mutual funds, stocks, investing, retirement and personal finance developments. We do so without conflict of interest and bias. Follow us on Google News. Freefincal serves more than three million readers a year (5 million page views) with articles based only on factual information and detailed analysis by its authors. All statements made will be verified with credible and knowledgeable sources before publication. Freefincal does not publish paid articles, promotions, PR, satire or opinions without data. All opinions will be inferences backed by verifiable, reproducible evidence/data. Contact information: letters {at} freefincal {dot} com (sponsored posts or paid collaborations will not be entertained)
Connect with us on social media
- Twitter @freefincal
- Subscribe to our YouTube Videos
- Posts feed via Feedburner.
Our publications
You Can Be Rich Too with Goal-Based Investing
Published by CNBC TV18, this book is meant to help you ask the right questions and seek the correct answers, and since it comes with nine online calculators, you can also create custom solutions for your lifestyle! Get it now.Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want
This book is meant for young earners to get their basics right from day one! It will also help you travel to exotic places at a low cost! Get it or gift it to a young earner.Your Ultimate Guide to Travel
This is an in-depth dive into vacation planning, finding cheap flights, budget accommodation, what to do when travelling, and how travelling slowly is better financially and psychologically, with links to the web pages and hand-holding at every step. Get the pdf for Rs 300 (instant download)