Are you planning for financially safe future for family?

India’s young population, especially people in the age of under 25, is increasing sharply. And, today’s young brigade is quite smart. Like the way they believe in working and partying harder, they also consider earning quick money. At young age, you can take more risks to earn money so that you relax during old-age. This is exactly the thesis applied when it comes to making your investment plan. In today’s growing uncertainties it is important that every individual works out some sort of investment or savings plan to lead a happy and financially secured lifestyle. You may be unmarried or recently married or may be on the verge of starting a family. You might be new to professional life or settling in your career. You might have bought a new house or lavish new car; everyone can enjoy the affluence only if they have carved successful path of the best investment plan in their lives.

The article guides on few tips to be considered while working upon the best investment plan of life:

Age

As we discussed earlier the younger your age is for taking more risks in investment. That is because you have more time to recover from market downturn or loss of value in a particular investment. So, if you are in your 20's, you can allocate more of your portfolio to more aggressive investments like equity or stocks. Alternately if you’re nearing retirement, allocate more of your portfolio to less aggressive investments, like fixed-income, and large-cap value companies. Therefore, the age at which you start making investment plays a crucial role on your investment strategy. Financial Situation

To make investment it is important for you to gauge your existing financial resources and stable source of income. It is advisable to take a look at your budget and determines how much money is remaining for investments after your monthly expenses and set aside an emergency fund equivalent to 3 to 6 months' worth of expenses. You can make a sound planning only if you have some sort of financial back up in hand.

Risk Potential

This is another crucial element in working upon your best investment plan Your risk profile determines how much risk you're willing to take. The percentage of money you wish to fuel in various market based funds such as equity, debt or balanced funds etc. Generally speaking, stocks are more volatile than bonds, and bank accounts are safe. Remember, there are always risk trade-offs to be made if you wish to earn good money. Often, when you take less risk, you make less. Investors are richly rewarded for taking significant risks, but they can also face steep losses, at times. Your risk potential and thorough market research should go hand-in-hand for better prospects.

Set Goals

Your investment plans will be successful if you keep achieving each goal. Set goals for your investments such as what do you want to do with the money you make from your investments? Do you want to retire early? Do you want to buy a nice house? Do you want to own a restaurant? As a thumb rule, diversified portfolio will matter for buying house, saving for child or marriage etc. The idea is to let the investment grow over a long period of time so that you have enough to fund the goal.

Monitor Investment

If you want to make the best investment plan, you will have to monitor investment plans time to time. Check to see if they're performing according to your goals. If not, switch funds and determine where changes need to be made. Take expert advice and switch funds to produce requisite result.

In today’s time for the best investment plan, it needs tweaking keeping pace with the change in the economy. Same rules apply for change in your life. Look these situations as opportunities to revise your strategy, while keeping your goals intact in your minds. This will give direction to your investment activities and make it easier to see the big picture even as you deal with what is happening today.