Friday, 18 December 2015

Your 4 Best Investment Strategies For New Year 2016

Posted by MyInvestmentsPub
Just few days away to enter into New Year 2016. Every New Year brings with it new beginnings and optimism. A lot of people like to usher in the New Year with resolutions that they eventually end up breaking. A lot of people usually fail to maintain such New Year financial resolutions because they over complicate their resolutions making them hard to maintain. It is the time for us to get rid of the habits which don't have benefit for us. A simple   Financial Planning with Right Investment strategies would help you to overcome the failures in your Financial Resolutions in this New Year 2016.


Investment Strategies in New Year 2016:


Year 2015 is not a good year for Investors. Many National and International factors influenced the Stock Market's poor performance. Nobody knows how this Market trend in New year 2016. Many Market experts as usual expecting Market would show good performance levels siting various reasons like low Crude oil prices, Controlled Inflation rate and Government's new upcoming projects. However, any events like Greece Effect, Chinese Currency fluctuations, Gulf turbulence etc may occur and all the expectations of Market recovery may reverse. So, it is always required a Right Investment Strategy to proceed your financial journey with safe and steady.

1. Emergency Investment Strategy:


In this day and age of increasing inflation, sudden job loss or a sudden illness of any family members can damage your finances. Therefore, it is imperative to have an Emergency Investment Strategy to encounter these kind of emergencies. You should maintain an Emergency fund or Contingency fund for this. How much you need to maintain in this fund? On a thumb rule, you should maintain a sum which is equal to 6 - 12 months of your monthly salary into this emergency fund. For eg. you are earning Rs.10000 per month, then your emergency fund should be in the range of Rs 60,000 to Rs 1,20,000. Then, where should we keep this amount? Liquid funds are my suggested choice to maintain this Emergency fund. Initially, you start investing through SIP into a good Liquid fund and once you reach the suggested levels, then stop the SIP and keep maintain the sum into the Liquid fund. A good liquid fund yields returns 8% - 9% annually which is better than the Bank FDs. Do not touch this amount unless you have any emergency situation.

Here are my top suggested Liquid funds for 2016:


2. Life Insurance Strategy:


Insurance are the best ways which can increase your risk taking abilities and prepare yourself for the unexpected. Once you know you are prepared for any kind of mishaps it lowers your worries. It is safe to take a Term insurance plan at least 10 - 12 times of your annual income. For eg. if your annual income is Rs 1,00,000 then your Term Insurance would be for the sum of Rs 10,00,000 - Rs 12,00,000. But one should not consider buying an Insurance plan as their investment. An Insurance plan is just to take care of the dependents and shouldn't be considered as return bearing investment. Do not forget to consider the Riders along with the Base Plan.

The following are the Best Term Policies available in the Market for 2016: 
(for 30 year non-smoker)


3. Health Insurance Strategy:


Most of us are not aware of 'how much' Health insurance we need to buy to protect our family in case of an eventuality. Some of us who are already covered with Group Health Insurance provided by their company think that another Health Insurance is not required. But, imagine if you change / lost your job? or if your existing policy is not covering in some private hospitals? It will cost a huge damage in that scenarios. Hence, every one should take a Family floater policies for at least for the sum of Rs 3 Lakhs at early stage. You can also consider riders along with the policy.

The following are the Best Health Insurance providers for family floater policy for 2016:


4. Setting Financial Goals Strategy:


Review your existing Financial Goals and re-balance them with the upcoming challenges. For eg. you may have spouse, children or wishing a new Home or Vehicle. According to these new additions in your wish list, you need to add your financial goals accordingly. You may also get a promotion or a job change where there will be significant salary hikes. In this case, your allocation of funds should also be appropriate to maintain the current life style in future. Mutual funds are my top priority in choosing the right investment to your Financial goals. Be cautious about setting too many or unrealistic financial goals. Otherwise, you may be unable to accomplish any of them. maintain a checklist to keep track of how you are doing throughout the year, so that you can make any necessary modifications. Consider meeting with your financial adviser to review the goals and objectives that you have established.

Here are my top suggested Mutual funds for your Short-Term and Long-Term financial goals for 2016:


Conclusion:

Maintaining a Disciplined Systematic Investment approach would always yield a handsome and Inflation-beat returns irrespective of Market oscillations. Take these Resolutions and Strategies in this New Year and enjoy rest of your life.
Small is Beautiful!

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