Why is Investment Planning Necessary?

It is necessary to match the resources available at hand with your financial targets and objectives. Therefore, investment planning is a process that starts when you are ready with your financial goals and objectives. A pioneer in the field, Joseph Stone Capital helps you with financial planning to match the resources with your objectives.

You will find a variety of investment opportunities around the world. Some of the commonly used investment avenues are bonds, equities, cash, and property. A proper investment plan will comprise all of these instruments. The financial experts will help you establish measurable and clear goals. A mix of investments will be ready to suit and meet each of your financial objectives. As you progress with your plan, necessary adjustments will be incorporated to reach your financial goals successfully.

Investment Planning’s Objectives

It offers better financial security and safety to all of your family by keeping aside some money for your future requirements. It assesses risk tolerance and suggests suitable investment avenues to maximize your returns. It improves liquidity. You should be able to liquidate your investments to meet emergency needs. The financial experts at Joseph Stone Capital will make a better investment plan to meet your long-term objectives without compromising on your emergency needs.

The main aim of the investment is to generate funds. You can use the generated funds to meet your financial targets. With a proper plan, you can park your funds in equities to offer handsome returns in the short and long term. You can invest in tax-saving funds that offer moderate returns while helping with your tax payments.

The main intention of a good financial plan is to grow your capital and create wealth. A proper financial plan will tell you where to park your surplus funds, considering your risk appetite and time frame, say 3, 5, or 10 years. It is advised to focus on creating wealth in the long term rather than in the short term.

Create an Investment Plan

You need to know your current finances to create an investment plan. It is necessary to take into account your assets, expenses, liabilities, salary, and other sources of income. It is a necessity to know your net worth using your liabilities and assets. It means you need to consider the amount available in your savings account, cash, car, home, and existing investments.

You can compute your surplus funds after deducting your liabilities from your income. You need to make a list of your goals, which could be building a home with INR 5 crore, buying a small car for office commuting, or visiting your girlfriend. After jotting down all these, you need to find out the time required to achieve all these goals.

If you can achieve goals within 3 years, such goals are considered short-term. Any of your goals beyond 3 years are known as long-term goals. It helps you pick the right investments and make sufficient funds to meet your financial goals. You need to regularly monitor your investments and make switches at the right time to maximize the fund’s value.