Fiscal Planning

There is a tradition in our society to take resolution in the New Year. We all take resolution in the New Year to do something or not to do something. I think the most important resolution that we should take is The Investment planning. By this, we can improve our standard of living very easily. So, if you want to improve your standard of life by taking a resolution then take a resolution for Investment planning.

Make a fiscal goal in your life.

First of all, you have to make an Investment Objective. It must be very clear and concise. By doing this, you will be able to make an outline of savings after your Incomes and Expenditure. Another profit will be that you will grow with the pace of time. Make a resolution in the starting of the year to save 20% of your total monthly income. For example, if you want to buy a home in near future and save money for the Down Payment. You can save 20000 Rupees par month, that will be 240000 Rupees in a year. If it is not sufficient for your purpose, you can cut your expenses and increase your savings accordingly. By doing this, you will be able to get your dreams fulfilled in proper time period. 

Get advice by your Investment Adviser

General people are very confused about how and where to get advice. They do not know where to invest their money to get good return. They follow traditional way of investing by doing Fixed Deposits in Public Sector Banks and Post Office. They often invest in Chit Fund Companies and Pongy Schemes in order to get more profit. In Fixed Deposits, one can get hardly 7 to 8% of returns every years. But it is not able to counter the effects of Dearness and in Chit Fund Companies, your whole savings will be lost forever. So, take advice by a financial adviser.

Investment options available in the market

There are a lot of investment options available in the market. You have to make use of it according to your needs. You should make decision in the context of your time frame, age, and your ability to take risk. If you are able to take risk you should go with Equity options. If you want to take medium risk you should make use of ELSS, Debt Fund, Mutual Fund. If you do not want to take any kind of risk and want to go safe you have to choose Fixed Deposits, LIC policies, PPF and Gold investments. 

Means to get Income Tax Exemptions

There is often seen that people invest aimlessly in the last hour, in order to get Income Tax exemption u/c 80c of Income Tax Act. People have been investing in LIC Policies, National Savings certificates until now. But these are traditional ways of investments. Now more options are available for you in the market. Some of them are as follows:

• Tax Savings Mutual Funds(ELSS).
• Public Provident Fund.
• Unit Linked Investment Program(ULIP)
• LIC policies.
• New Pension scheme(NPS).
• Rajiv Gandhi Equity Savings scheme.

These are some Tax Benefit schemes which will be very beneficial if you want to invest in a Non-traditional ways.

Need to diversify your Portfolio

It is necessary to have diversity in your Portfolio, if you want good return in low risk. If some Investment options is not performing well other performing options would make up for your loss.