1) How does the Investment Planner help?
Whether you're a beginner who’s started with investing, or you're already a veteran investor, our Investment Planner can help you figure out how to meet your financial goals with diversified asset allocations. It helps to give a clear picture of how much you should ideally save & how much you should invest (financial planning), and where should you invest (asset allocation). We'll walk you through the basics of investing, tell you about different risks and considerations involved to put your money to work.
2) Why you should invest?
Investing lets your money (that you’re not spending) be kept at a place where it can work for you. In simple terms, setting aside some money out of income to get money from it in the future is termed as an investment. The money you invest in stock and bonds can help governments or companies grow, and in the meantime, it will earn you good amount return.
3) How to decide your asset allocation?
If you’re a conservative investor, go with fixed income instruments like FD, Debt bonds, etc. where principal amount remains safe, and investor gets interest over this amount. However, if you’re aggressive, you can go with equity where higher returns can be seen with high risks.
Risk v/s Returns on Investments:
In general, investing is a trade-off between risk and return. Investments with higher return potential also have a higher risk potential. The out-of-danger investments sometimes barely beat the inflation rate. Finding the rightly balanced asset allocation for you will depend on your risk tolerance and age.
When it comes to investment planning, the closer you are to retirement, the more vulnerable it is to your investment portfolio. So, what's an investor supposed to do? Conventional wisdom says older investors who are getting closer to retirement should reduce their exposure to risk by shifting some of their investments from stocks to bonds.
4) How does Investment Planner work?
One can easily check-up the efficiency of money utilization through the investment planner calculator with high accuracy. The variables involved in Investment planner are
- Monthly salary
- Current age
- Current monthly savings.
Steps to calculate your financial efficiency through investment planner are:
STEP 1 : Fill the amount of your monthly salary.
STEP 2 : After this, enter your current age. Above six months can be treated as a complete year.
STEP 3 :Enter your monthly savings, which is the net-off total income and total expenditure.
After done with all three steps, press the CALCULATE button where you will be getting the output for your savings.
- Ideal monthly investment,
- Deficit amount and
- Allocation in equity & debt.
After getting the ideal asset allocation amount start investing, because your money will start to work for you only if you start investing right now. Remember that you should never give an unreasonable chunk of money to fund managers when you alone can grow your money. Investing has risks, but investors need to find their comfort level and build their portfolios and expectations accordingly. That amounts to good financial planning and asset allocation.