Tuesday 17 January 2023

Wealth Creation

Every person desires to create wealth since young age. Day in, day out we work and keep hunting for business opportunities to earn money, to meet our needs and desires. We might have often experienced this that by the time we are able to gather the required amount for a specific goal and we realise that the goal has become more expensive.  Hence it becomes important for us to understand that how better the planning can be done. Please remember unless it is not planned well the cost of the financial goal is going to increase faster than the value of your investment.

As quoted by Warren Buffet “Never depend on a single income. Make investment to create second source” Hence it becomes very important that we need to plan well and get our money start working for us simultaneous with our regular income.

We being a financial service provider often come across this question that what is the right time to start investing and how much should we invest? The answer is - there ‘no right or wrong time’ to start investing, what matters is to start investing with whatever investable surplus is left. You can start your investment with as low as 2000/- rupees. For e.g. one can do a SIP (Systematic Investment Plan) through Mutual Funds. What is more important is prioritising your expenses.

Every person should manage his cash flows i.e. review his earnings, calculate his expenditure and savings and invest accordingly based on his risk appetite, financial goal and liquidity needs. In the market there are many investment options available with different characteristics like, Debt, Gold, Real Estate, REIT’s.

For the purpose of ease it is always better to have some financial goal in mind and plan for the same. Any good Financial Advisor can guide and help you better to understand your goals and invest in the right avenue.

There is an old saying that “Time in the market is more important than timing the market”. For wealth creation just setting a financial goal and choosing right investment instrument is not enough you need to give your investments time to grow and there should be disciplined and consistency in your investing habit.

Review & Rebalancing is Important for Portfolio Management







Investment is not only the important point but at the same time, review and rebalancing plays a very vital role. Like we always say regular HEATH CHECK-UP is important, similarly REVIEWING our PORTFOLIO’S HEALTH is equally important.

1.      Helps maintain the original asset mix.

2.      Better risk management.

3.      Useful in implementing changes in investment strategy.

One must review their investment portfolio periodically to identify if any market changes have led to an immersion or rise in the value of your assets, thereby making your portfolio too risky or non-progressive. Over time, the risk-to-return ratios of assets might change. You might see your risk profile and financial needs change.

Re-balancing your portfolio helps to stay in line with your asset allocation strategy and implement any changes you make in your strategy. Some of the benefits of re-balancing your portfolio are listed below:

Author Mr. Bhavin Shah

Latin Manharlal