Tips to help you frame investment strategies for 2009 – 1 January 6, 2009
Posted by dhirendra08 in Blue Chip Stock, Economic slowdown, Financial Responsibilities, Health Insurance, Life Insurance, Long-term Capital, Long-term goals, Lower Interest Rate, Realty Price, Turbulent market.Tags: Economic, Goals, Income, Insrance, Interest rates, Investments, Loans, Market, Stock
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Good morning friends! There are some tips which I read with reference to The Times of India. I want to share this to everyone and I’m sure it will also help you a lot.
Depending on how you choose to look at it, 2009 could either be the harbinger of more bad news or offer a plethora of opportunities.
While an economic slowdown, turbulent market conditions and job/pay cuts will, no doubt, test your resilience, opportunities may come knocking in the form of correction in realty prices, lower interest rates on loans and attractive valuations of blue-chip stocks.
To capitalise on the opportunities and tackle the challenges during the year, you need to stick to an investment strategy based on your long-term goals and risk profile. Here are a few guidelines to help you frame one:
25 To 30-Year-Old Singletons
Irrespective of the age bracket you belong to, health insurance should figure prominently in your must-have list.
The need for life insurance for this category, however, will arise only if you have dependents. “In addition, you need to create a contingency fund, because this year, increments will be hard to come by, and the sword of job cuts will continue to hang over employees’ heads,” points out certified financial planner Amar Pandit.
While this piece of advice will be applicable to all classes of investors, youngsters who have just started their careers need to take it seriously as unlike other age groups, they may not have the luxury of existing investments to cushion the impact of tough times. Also, you will need to be thrifty when it comes to spending on consumption needs.
You should strive to save around 40% of your income and direct most of it towards investments — mainly equities. “Although the asset allocation depends upon one’s risk profile and other needs, generally speaking, youngsters can take advantage of their youth and relatively fewer financial responsibilities to take on more risk and participate in long-term capital appreciation,” says Kartik Varma, co-founder, iTrust.in, a financial planning firm.
