Skip to main content

Do I require Financial Planning Expert?

Buy Gold Mutual Funds

Invest Mutual Funds Online

Download Mutual Fund Application Forms

Call 0 94 8300 8300 (India)

Why do I need? Am I right in making this decision?


Human psychology goes against the practicality and general logic and most of the time it compels people to take their decisions emotionally. When we were using landline phone for telephonic conversations, we never felt the necessity of mobile phone. Even when it came, as a concept people were reluctant to use such hi-tech instrument for exchanging conversations. But, no sooner it came, it became hot favrourite of young and old alike. Whole generation got hooked to it. Today we will not see any single person who is not having mobile.

Considering the above example where human psychology is at play, it is evident that we follow people around us rather than our own preferences. So much so, that we are not even ready to look at the features and benefits of the product.

Don't you agree that many of us are doing it with our financial matters also. When it comes to making a financial plan by paying fees to an expert, our logic is that we don't require it. But here you are loosing out on most important aspect i.e. unbiased advise of an expert who can guide you for your finance, for your health, for your goals thus making you lead a happy life. Still you are just looking at the fees of the expert. Is it right thing to do? No!

Read on to know why.

It is noteworthy that we should not be too late to know that financial planning done by an expert is worth your money as he is the one who not only has the required qualifications but also detailed knowledge of the subject. They are known as Certified Financial Planners. So before taking a step towards planning your finances, you should know the phases in your life. Say as you ascend newer highs in your lives, your aspirations and needs grow proportionately. These ever-increasing needs are further compounded by inflation, which depreciate the purchasing power of your hard-earned money. To achieve your dreams and fulfill your future obligations, you need to carefully plan your finances. This can be done via sound financial planning that takes into account your current and future needs, your individual risk profile and your income to chart out a roadmap to meet these anticipated needs.

Now you must be curious to know in which all areas an expert can help you.

The areas are listed below:

1) Investment:

Investment is very important when it comes to planning. You make investments either in Equity shares or in Mutual Fund or in Fixed Deposit or in Gold. What good are these if they are not goal based as you are doing it through agents who may be your relatives or friends, just having sales skill to promote those products, which can earn them commissions. Hence the advice is very biased in nature. Here you are not sure that these investments will fulfill your requirements and also will help you to let you live your life peacefully. But when you do your investment through a Financial Planner, the first step, which he will ask you to take, is to decide the path of your life, set priority of your goals, understands your risk appetite, in short, he will take you through the entire process of planning which ultimately helps to allocate your assets in to proper asset class, based on your goals by considering inflation into account

2) Cover yourself Adequately:

We all know that insurance cover is utmost important still we are very reluctant to take insurance. Even if you have taken Insurance it is through endowment plans or ULIP plans which is the combination of insurance and investment, it applies to health insurance too, as people take investment and health insurance combination plans. According to financial experts it is always advisable that you should take separate plans for your different needs. Because you will neither satisfy your insurance cover need nor growth on investment. By keeping your insurance and investment separate, it is sure that you will have adequate cover for your self for both life insurance (Online Pure term plan) and health (Mediclaim through general insurance).

3) Professional Approach:

The Financial Planner will always clearly explain or document the services to be provided to you and will define both his and your responsibilities. The Planner will explain fully how he will be paid and by whom. The Planner will also disclose any restrictions on his ability to give unbiased advice and disclose any conflicts of interests. You and the Planner should agree on how long the professional relationship should last and how decisions will be made.

4) Review:

Generally you do not give importance to review your plan or may be you don't get time to do so. But for the financial planner it is one of the process or stage where once the execution of plan is done, it must be reviewed regularly. As your needs change, and the economy changes, so does your plan. A good financial planner should encourage you to review your plan and make changes as needed thus keeps a check on your progress.

This way you understood the importance of taking services of a financial planner who is expert in making your life simpler, which we can easily point out by giving thorough look on above important highlights. Hope that, now most of you will not mind in taking guidance of financial planner by paying fees rather than living life in a haphazard way.

Happy Investing!!

 

We can help. Call 0 94 8300 8300 (India)

 

Leave your comment with mail ID and we will answer them

                        OR

You can write back to us at prajnacapital [at] gmail [dot] com

---------------------------------------------

Invest Mutual Funds Online

Transact Mutual Fund Online

Download Mutual Fund Application Forms from all AMCs

Download Mutual Fund Application Forms

Best Performing Mutual Funds

    1. Largecap Funds        Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Birla Sun Life Front Line Equity Fund
    2. Large and Midcap Funds     Invest Online
      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    1. Mid and SmallCap Funds    Invest Online
      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    1. Small and MicroCap Funds             Invest Online
      1. DSP BlackRock MicroCap Fund
    1. Sector Funds              Invest Online
      1. Reliance Banking Fund
      2. Reliance Banking Fund
    1. Gold Mutual Funds             Invest Online
      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund

Popular posts from this blog

Atal Pension Yojana contribution Tax Benefit for spouse

Contributions to Atal Pension Yojana (APY) are eligible for the same tax benefits as the NPS. This means that the contributions can be claimed under Section 80CCD (1B). The current limit for Section 80CCD (1B) is   Rs   50,000, over and above the   Rs   1.5 lakh limit under Section 80C. Section 80 CCD (1) is a different one, meant to cover employers' contribution towards NPS . You cannot get tax benefit by investing in the name of your spouse under Section 80 CCD . ------------------------------ ----------------- Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds Top 10 Tax Saver Mutual Funds to invest in India for 2016 Best 10 ELSS Mutual Funds in India for 2016 1. BNP Paribas Long Term Equity Fund 2. Axis Tax Saver Fund 3. Religare Tax Plan 4. DSP BlackRock Tax Saver Fund 5. Franklin India TaxShield 6. ICICI Prudential Long Term Equity Fund 7. IDFC Tax Advantage (ELSS) Fund 8. Birla Sun Life Tax Relief 96 9. ...

L&T Income Opportunities Fund dividend

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300 L&T Income Opportunities Fund declares L&T Mutual Fund has announced dividend under the following schemes: Scheme Dividend ( R /unit) L&T Gilt Investment-DQ 0.3 L&T Gilt Investment Direct-DQ 0.3 L&T Income Opportunities Ret-DQ 0.31 L&T MIP-Wealth Builder-DQ 0.3 L&T MIP-Wealth Builder Direct-DQ 0.3 L&T MIP-DQ 0.3 L&T MIP Direct-DQ 0.3 L&T Short Term Opp-DQ 0.26 L&T Short Term Opp Di...

Common errors that couples make while investing

Most couples plan their strategies together but make mistakes while investing. Here’s how they can avoid the common errors Make no mistake. Ignorance is no longer bliss. In fact, many couples goof-up while investing together because they are not financially transparent to each other and don’t share a common goal. KEEPING SECRETS You may find questions from your spouse as an intrusion into your privacy, but financial planners believe that sharing financial details with each other is the first step that a couple takes towards their family financial goals. If you plan to invest together, then it’s important that you should be transparent to each other on the financial front. The whole idea is that you should be able to determine how much you will set aside for investments after making all the deductions for personal and household expenses. IMBALANCED APPROACH As a couple, you may have huge assets and hold stocks, but it’s important that you should direct a part of the investments for emer...

Avoid NFOs

  Don't get taken in by the flurry of new fund offers. You will be better off sticking to the tried and tested schemes.   For the past one year, to cash in on the bull run in equities, mutual fund houses have gone on a new fund offer (NFO) overdrive. But experts are unanimous in their advice: avoid NFOs . While past performance is not an indicator of how a fund will fare in the future, it does tell the investor how skilful the fund manager is. This crucial information is missing in an NFO. Not only is there no track record to judge an NFO by, many NFOs are similar to funds that already exist. If the new fund is similar to existing funds, you are better off investing in the latter. Around 67% of the new launches in 2014 were closed-end products. Investing in the NFO of a closed-end fund is doubly risky. In case the fund's performance is lacklustre, a closed-end fund does not allow you to exit. Even though closed-end funds are listed on the stock...

L&T Growth

Invest in Mutual Funds Online Download Mutual Fund Application Forms   L&T Growth Fund (LTGF) is open-ended diversified equity fund that invests predominantly in large caps. LTGF follows the growth style of investing and has been in existence for over 10 years now.   Type of scheme Open-ended Category Diversified equity Sub-category Large Cap Style Growth Launch date September 17, 2001 Risk-Return proposition High risk-Average return   Investment Objective and Proposition The fund's primary investment objective is "generate long term capital appreciation income through investments in equity and equity related instruments; the secondary objective is to generate some current income and distribute dividend. However, there is no assurance that the investment objective of the scheme will be achieved." Following large cap ...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now