Saving is the most required and often overlooked habit among majority of people
. Are small savings are sufficient in order to secure your future from all the financial risks? The answer would be an easy No in order to secure your future; you have to go for huge investments. But this doesnt mean that you have to invest all of your money in a single source. What matters here is the portfolio management!
Portfolio management means diversifying your investment among different securities in such a way so as to maximize return while minimizing the risk. And this will be possible only by formulating some clear investment strategy. And the best way is to take investment advice of some experts. These experts are qualified independent financial advisers or the brokers who will help you to decide about your investment goal and various strategies that you would follow in order to achieve those goals.
Investment goals are different for people belonging to different age groups. It means goals of youngsters are varying from those of the people who are in their retiring age. So investment advice will help you to decide upon various opportunities where you can invest your money to achieve your individual goals. Important points that you need to consider are:
- Make yourself clear with regard to the term of the investment and the type of risk you can bear. Sometimes your risk tolerance capability will help you to decide upon the term of investment. Like if you are conservative investor you would have less risk bearing capability and short term investments are more suited to you. And if you are a moderate or aggressive investor then you can bear high risk, medium, and long term investments are more suitable. But always consider one factor, which is higher the risk, the greater will be the return
- Always concentrate on the diversification of investment. Many youngsters dont have much knowledge and usually invest all their investment in a single security. This will only result in loss
- If you belong to high tax slab, then you can opt for tax saving investments. You can get a deduction under various sections of income tax
Thus, independent financial advisers play a very important role in almost every economy. They are responsible not only for the success of individual investors but also for big business houses. You can count on their expertise for indulging in the best investment.