Home > Education > What are your investment objectives?

What are your investment objectives?

Monday, November 26, 2007 Leave a comment Go to comments

Whenever I ask people about their investment objectives, they feel confused.

Do you really know “Why are you investing in the markets”? I know all of us want to make a quick buck in the markets but how much do we want and what is it for?

Have you ever given thought to these questions?

Without having defined objectives and goals, investing can be very dangerous. How would you know that you have adopted the right strategy? How would you know that you are making a good progress and on your way to achieving your aims? Taking a systematic and planned approach to your investments is the first step in achieving financial success.

We can look at some of the possible objectives for investing and some of the approaches we can take to achieve our goals.

Investing for your kid’s education or for your retirement:

Are you one of those wish to invest in equities for long term so as to finance your kid’s education abroad or to have enough money in hand at the time of retirement?

If yes, then why do you have to take excessive risk in doing short term trading with futures? Don’t you know that you can even lose your capital if you are not careful?Don’t you understand the power of compounding? Are you aware of the fact that if you grow 5 lakhs at 35% per annum for 10 years, then your 5 lakhs grows to 1 crore. No wonder Einstein had called “compounding” as the eight wonder of the world!What you might require is a slow and steady growth of your investments every year. You are better off thinking about the next 10-15 years rather than the next 10 days!

And the earlier you start in life-the sooner you can think of being financially free.

Investing to buy your favourite car or take your dream vacation:

If you are investing to buy your favourite car next year, then you might do well to exactly find out the money you require to buy that dream car or take that dream vacation. Do you need to make 30% or 50% or 100% in the next year? This way you can define your risk in the markets and the rewards you are seeking. After that you need to put some hard work to achieve your objectives.This might also call for some short term sacrifices as you might reduce your unnecessary spending in the short term and invest that money into the markets.

Also one should keep in mind that it is not advisable to take a huge debt to invest in the markets. I have come across people who take these credit card loans to invest in the markets. For such guys it is better “not to invest”.Greed won’t help you achieve your objectives.

If you just enter the markets without even knowing what you want from them, you might be in for some big time trouble. You might just be moving like a pendulum between long term and short term investments without knowing a clear direction. View them as vehicles to create wealth and not as vehicles for some “short term excitement”.

All of us understand that “investment objectives” change with time and circumstances but we can always make those adjustments if we know what we are in for.

So write your financial goals and take the necessary steps to achieve those goals. Follow your dreams!

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Categories: Education
  1. manish mishra
    Thursday, November 29, 2007 at 6:33 pm

    Good guidelines for the market lovers you are 100% righat there should be proper way for investing in to market from the investor point otherwise the chances of loseing money are bright so first of all make plan and invest .Than only you will be able to maintain your wealth as well as mental peace.

  2. sagecapital
    Wednesday, November 28, 2007 at 5:43 pm

    Ashish-It remains to be seen if it is just a bounce.
    Bajaj Auto looks interesting.

  3. ashish ji
    Wednesday, November 28, 2007 at 10:35 am

    SAGEE — I”M NOTICING SOME MOMENTUM BUILDING IN AUTO/IT STOCKS… IS THE WORSTT over?>

  4. Raj
    Monday, November 26, 2007 at 10:39 pm

    Wise words! I would be very happy to get your contact and get some guidance for my financial plans. Can you write me?
    My email: rajsoman@gmail.com

  1. Monday, November 26, 2007 at 9:16 pm

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