Are you a “new” Mutual Fund Investor? Here Are the 5 Rules That You Should follow in 2019

Are you a “new” investor? Umm. Let us be more specific. Are you a “new” mutual fund investor? In that case, you might be facing a tough phase while making investments in 2019. Many investors whom we have made a connection with have just started investing in mutual funds after the “demonetization” drive was carried out by the central government. This what has created the major problem among the investors.   

Like you, there are many investors who have staggered while getting negative returns from their equity mutual fund investments. For those investors, it is extremely decisive to stay focused on their investments during uncertain situations. 

Still having confusion about how to handle all your investments? Look no further. Here in this blog we have listed down 5 crucial rules that if you embrace them in 2019, you can surely enjoy in the end, making successful mutual fund investments.   

1. Stop chasing Returns: When you stop chasing returns, the return will chase you. While making your mutual fund investments, it is certain that you will be told about high returns. But if you believe that high returns will knock your door from the day one then you are surely on the wrong track. 

Additionally, there are some investors who prefer to invest their money in schemes depending on their past performance and expect similar returns in the future as well. This is completely the wrong approach. 

Instead of choosing the schemes based on past performance and expecting high returns from the very first day, you need to look for risks associated with it. Higher the risks, higher will be the returns. Hence knowing your risk appetite will help you to make perfect investments. 

2. Focus on your Investment Goal: Every investor has their own specific investment goal. Some want to make an investment for their child's higher education, some make investments for their daughter's marriage, and so on. The list is long but the main motive is to make investments and save money. Therefore, you must go for those schemes that cater to all your needs. 

For instance, if your goal is for long-term, you should make investments in equity mutual funds, whereas for short-term goals, debt funds are the best. Generally, there are investors who invest in mutual funds online just for high returns. But they lose their focus when they encounter adverse situations. Are you doing the same? This is what you need to rectify while you are planning for investments in mutual funds. 

3. Be patience during Uncertainties: Another most important thing that new investors least emphasize on is patience. Patience matters a lot whenever you are investing in mutual funds. Especially when there is any uncertainty or volatile period, instead of panicking, you need to stay calm and keep trust on your investments. 

We have seen many investors, making investments with strong zeal but during the volatile period they withdraw their money. Mutual fund investments is not a game of a year. It has to be played for a long-term period, if not long at least for 5years.

4. Have Balanced Portfolios: Having a balanced portfolios is yet another technique that you must learn while making investments. Based on the market survey it has been found that many investors who have joined mutual funds after the hike of the equity market in 2016, started investing just in equity mutual funds.

Being an investor, you need to keep in mind that one asset class for example equity mutual funds can never perform all the time. There might be ups and downs in the market. Hence it is feasible to depend on a plethora of portfolios, instead of a single one.  

Investing in mutual funds is one of the finest ways to secure your future and achieve your financial goals. But not every mutual fund tailors your needs. Hence, it is beneficial to look for the fund that cater to all your requirements. 

The best way to get the best advice regarding your investment is to look for a financial advisor. Some financial studios like Wealthclock Advisors will help you with your concern.  

5 Things You Must Know Before Investing in Mutual Funds via SIP

A mutual fund investment plan is recommended for the investors who do not wish to bear more risk and also, do not have the capacity or time to analyze the market trends on a regular basis. Mutual funds investment through the extremely useful Systematic Investment Plan (SIP) has become very popular in recent years. 

SIP is a process that benefits investors in several ways and this facilitates mutual fund investment too. So, if you are an investor who is looking forward to the best way to earn handsomely from your investment, then go for this kind of fund but via SIP. Mutual funds have several benefits like an easy process, lower risk than others, active market tracking is not necessary and others. 

5 things that you need to know while going for mutual funds via SIP

Set objectives at first

If you are following this route for wealth creation purposes, then you must set a definite objective as per the respective requirements. If you are having trouble in doing so, then visiting top experts like Wealthclock Advisors can be pretty helpful. They will also guide you on how to invest in mutual funds online free. 

Lower average cost

While investing in the best performing mutual funds 2019 through SIP, you will have a lower average cost of investment. It is not possible otherwise through lump sum investments.

One-time return Vs SIP return

It is not necessary that your mutual fund SIP returns will be higher than the lump sum investment. Returns from the same mutual fund scheme vary between investment via SIPs and one-time investments.  

Refrain from stopping SIP

You should not stop your SIP investment especially at difficult times or maybe when its time for a market correction. Because of the dip in market prices of the underlying debt or equity assets, a smart investor may end up purchasing more mutual fund units compared to what he does during the bull run. 

Investment review

If you invest in mutual funds via SIP route you are not required to keep a track of your investment on a daily basis. But, a monthly or maybe a quarterly review of the SIP investments will offer a clearer picture of how things are going and whether there is any need for improvement or change so as to facilitate the overall goals. 

3 Reasons Why Asset Allocation is Highly Useful

If you ask a financial expert to define the true meaning of the term 'asset allocation' then they will explain it to you as an approach to investing where people decide the amount they want to invest in different assets based on their long as well as short term financial goals. Well, this is what the process of asset allocation really means and you should adopt it to strengthen your position. 

Asset allocation is something that can benefit your financial investment process in a huge way. Today, with the plethora of financial experts available all around the town, you can get the best advice related to this highly useful process. Among the many firms, Wealthclock Advisors, hugely lay emphasis on the importance of asset allocation.  

In this blog, we will know about the reasons why asset allocation is considered so useful.

The importance of asset allocation in today's time

It spreads the risk

People have a knack for a certain kind of investments. Some may prefer best performing mutual funds 2019 over fixed deposits. Some of us keep equity higher than real estate. We do investment based on our intuition. And intuitive investments often lead to over-reliance on a particular kind of asset. This can leave us exposed to risks. 

So, this is where asset allocation comes into the picture. It helps to spread the risk so that your investment portfolio is not in danger.

Definition of investment objective 

Everyone invests with the aim to meet their future goals or needs. People may have short-term needs such as paying for children's education fees or long-term goals like retirement plans. So, if you engage in asset allocation and combine the top equity mutual funds to invest and fixed income investments in a suitable way, that will facilitate your financial goals, then it will be quite helpful.  

It will also help you to manage and grow your investment portfolio in a better way. We all look for safety when it comes to investment and this process helps us to achieve a safe status.  

Eliminates the possibility of market timing

It has been said a lot of times that the market can't always be perfectly timed. But still, people tend to flow with what the media has to show. If they see a sudden price rise, it may tempt them to make some bizarre decisions. We may think engaging in some fancy move may bring us glorious results. But more often than not, we end up hurting our portfolio. 

Asset allocation will help you to achieve not only your short-term but long-term goals too in a stable and logical manner.

Why is Equity Considered The Best Retirement Plan?

When it comes to retirement you need to make certain choices. So, if you wish to live a fulfilling retirement phase, then you not only need the correct kind of investments but also the right amount of time. Basically, you only have two choices; live a retirement life worrying about your financial aspects or retire and live an enjoyable life. 

What does retiring rich mean? It does not mean retiring with just enough to last for a couple of decades but the type of money that does not have the risk of running out. There are no actual shortcuts when it is about saving for retirement. Most of us don't receive stupendous salary hikes or fat bonuses. So, the choices we make will decide how comfortably we will live our retirement time. 

So, if you want the best financial advice, then visit the top experts like Wealthclock Advisors. They provide the best guidance and help to clear any such doubts. 

How is equity the most suitable retirement fund?

In order to retire comfortably and ensure a rich lifestyle, you should go for an investment option that will grow at a considerably higher rate than inflation. Equity is the best investment option in this respect. They have a historically proven track record of being always on top of inflation. You will see most rich people holding their wealth in the form of equity. 

Equity shows its true potential in the long run, like in the seventh year or so. The average growth rate of such investments in recent times has been 12% and it speaks highly about this scheme. They have often been regarded as the best investment plan with high returns in India. The rate is significantly higher than other similar schemes available. 

How is equity a helpful retirement solution?

Another advantage that equity has over other firms is that anyone in their early 20s can begin investing in them. And this gives them a whole lot of time to reap off the benefits of such safe investments with high returns in India. The phase of retirement can get extremely tough for people. And so, it is essential that they do proper retirement planning from early on.

Saving for retirement is a long term challenge. There is no other instrument other than equity that addresses long-term growth needs perfectly. Equity works perfectly over the long-term. 

Simple Ways To Obtain Better Results From Your Portfolio

Every investor aims to obtain good results through their investment process. But at times people are unable to achieve the same. So, they implement several tactics for this. However, not all of them are helpful and hence, they do not deliver the desired results too. Whenever you are facing a similar situation, make sure to get in touch with the most competent financial advisor.

We are a financial advising firm that offers excellent services to our customers. Our wide range of financial services are loved by our customers and they always look forward to taking valuable guidance from us. Your portfolio is very valuable and therefore, you need to take the best foot forward. Have a look at what we have to offer in our website.  

Meanwhile, check out the ways we advise that will help you to make your investment portfolio a better one! Choosing the best investment plan with high returns in India is not sufficient. You need to consider other things too while aiming to make your portfolio a strong one. We will discuss them below. 

Some effective ways to make your investment portfolio a stronger one

You need to spend a lot of time ensuring that your portfolio is a stronger one so that it can withstand the different conditions of the financial market. The steps mentioned below are helpful.

Assessment of risk-taking ability

The first thing that you need to do is a risk assessment. Every investor falls under some category or the other mainly aggressive, conservative or balanced investor. You may have a great life and have the potential to invest heavily, but you still need to understand your risk-taking ability. Your capability to handle loss is another factor that determines your risk-taking ability. 

A risk assessment will ensure that you select the best financial schemes that you can handle on the long-run and whose benefits will satisfy your investment. This will make your portfolio a rather strong one. There are many ways to assess your risk-taking capacity. You may contact a competent financial advisor for this purpose.  

We engage in this process and carry it off in the best possible way. Your risk appetite can also be evaluated through the tenure of your desired investment schemes. You will get the best Risk-Based Fund Recommendation in Wealthclock. 

Systematic Investment Plans

After evaluating your risk profile, the next thing that will help you to make your portfolio a stronger one is if you go for systematic investment plans. Wealthclock Advisors always recommend them over the lump sum investments for long-term goals. 

The best thing about them is that they work beautifully during volatile market phases and thereby, this is the reason behind their immense popularity among long-term investors. Your SIP returns will always be better than any other schemes. This is because they operate for a longer period of time and thus have the chance and potential to deliver superior results.

We at Wealthclock will always advise this step if you wish to strengthen your investment portfolio. They are safe investments with high returns in India. 

Diversification

This is an excellent step that you can take towards achieving a strong investment portfolio. The best thing about Mutual Fund Investment Plans in India is that they diversify across instruments/stocks. So, the best step that you can take in this regard is diversifying across asset classes as well as fund investment styles.  

This will help you considerably reduce risk and ensure that your portfolio is not easily affected by negative outcomes. We at Wealthclock, always advise this step to our customers. We believe in the power of diversification.

Some other ways to ensure an effective portfolio

Rebalancing

Asset allocation will not alone help. You need to engage in rebalancing too. The ratio will transform as your investment grows. So, this is when you should engage in the rebalancing process. A yearly review along with rebalancing of the asset that has helped those assets that have fallen will greatly help.  

Wealthclock Advisors offers excellent financial advising services and covers a broad range of subjects. Starting from financial planning to goal setting, you can always count on us for your financial needs.

Careful reviewing

You need to carefully review your ongoing investment schemes. Like for e.g if you own both large-cap and mid-cap funds and the former underperformed the latter then the reason behind this could be simply a not-so fruitful year for the large-cap stocks. So, it is imperative that you compare with that fund's own benchmark as well as similar category funds.  

Also, you as an investor need to stop expecting your fund to rise to the top of the performance charts every year. Even if they slip a bit, don't the decision of leaving them hastily. 

How Should a Newly Married Couple Plan Their Finances?

A couple who has recently begun a new journey of their life, in the form of marriage, need to discuss an utterly important topic; finance. There should be a common understanding relating to the financial aspect of their lives. When two people embark on a common journey together, then they should deal and handle their finances in a planned way. 

This is where a skilled financial advisor comes into the picture. In this case, a newly married couple should consult the best advisors in town in order to get a clear picture of how they should handle their finances in the right way. Wealthclock Advisors is a name that stands true to its reputation. So, what should be the ideal financial planning for a newly married couple? Let's find out below.

4 financial steps that one should take in this respect

An understanding of the existing finances

Both of them should clearly understand each other's post-tax income, financial position along with current savings. Calculation of their existing monthly expenses and prioritizing them should be taken into serious consideration. The couple should also ideally save at least 30% of their combined post-tax earning, as it is a recommended step by most financial advisors.

Discussion about important goals and milestones

There has to be a common understanding of both short-term and long-term goals. The former will include elements such as buying a house, retirement planning, children's educational expenses etc. They need the Best Investment Plan With High Returns In India, and for this, a session with their chosen advisors will be fruitful. 

The short-term goals include purchase of cars or going on a holiday and also saving for emergencies.

Fruitful investments

The emergency funds can be invested in different liquid funds in order to ensure easy liquidity, optimal earnings along with tax efficiency. For tax savings the couple can engage in those mutual funds investment plans that help to save taxes like ELSS. For long-term goals such as retirement, children's education, home purchase, a diversified portfolio would be quite useful.

Operational aspects

The couple should make the other partner a nominee in their respective investment and bank accounts. This will lead to a smoother asset transfer if there is a demise of one partner. There should be a transparency in case of bank account details like account number, ATM password among the couple as it will lead to easier access during an emergency. 

When a Person Need a Financial Advisor?

Every individual who manages the finance of his family requires a financial advisor to guide them and make the right investments. Are you a financial caretaker or financial chowkidar of your family? If yes, then definitely you need a guide who will help you in handling your own financial needs.

financial chowkidar

In this blog, we have mentioned the type of person needs a financial advisor.

1. Professionals who remain Busy: With the term “busy professionals” we mean the executives or the business owners who are highly engaged in their own field. These officials will certainly benefit from the comprehensive services of the professional financial advisors. From a one-time financial review to ongoing investment and other financial planning advice, you will be served with all of your concern. You might be an intelligent person, you might be a financial chowkidar of your own family, but do you have the required time to think about the right investment plan? In between the busy schedule, it is really hard to take the right decision. And hence, the financial advisors like WealthclockAdvisors appears in the picture. 
   
   
   
   
2. A Person who is about to Retire: If you are about to take your retirement and live a peaceful life without any financial glitch, then hiring the services of a financial advisor would be an ideal option. Being a financial chowkidar, it is the right time to make fruitful investments and enjoy the rest of your life with your family. However, often these folks tend to be their own financial advisor and end up making a mess with their own investments. Do you want to mess up your retired life like this? Of course, not. Seeking the help of a financial advisor and investing your savings in the right platform is always the best decision that you can take in this stage of your life.
   
   
   
   
3. Newly single Individuals: Are you recently divorced? Or there has been any accidental death of your spouse? In either of the cases when you are new to this single life, you need a financial advisor to assist you in the right way of making investments. Here you are the financial chowkidar of your own. However, in this complex situation, it might be hard for you to take an appropriate financial decision for yourself. A financial advisor in this stage, will play the role of your financial guardian and drive you to make safe investments with high returns in India. Additionally, there are situations when you need to solve some potential issues like life insurance that can be attained in case of the death of a spouse. In this situation, a financial advisor will certainly be God for you. In case you are divorced or you are undergoing the process, engaging with a financial advisor will help you to determine a fair split of the couple's assets. 
   
   
   
   

Reaching the bottom line, it is not the type of a person or a profession that should hire a financial advisor. It is basically the situation that compels the financial chowkidar to do so. Do you belong to any of the aforesaid situations? If yes, then you should visit a financial advisor and make a safe investment with high returns in India.