Who are you?
The correct answer to the question "Where should I invest?" should always begin with this counter-question. Far too often, we, as well as our readers are guilty of focussing on investments. We talk about fund categories and returns and ratings and fund managers and sectors and benchmarks and the rest of the jargon and the paraphernalia of mutual fund investments.
Nothing wrong with this-each of these play an important role in choosing good funds. However, they do carry the danger of making us forget that investing is less about the investment and more about the investor. The biggest factor that decides what kind of investments you ought to be making has less to do with the investments themselves and more with you. Investment-planning is a response to a challenge-and what the response is, depends entirely on the challenge.
What makes the task easier is that for the most part, the lives of each of us follows a certain pattern. We finish our education and go to work. After a few years, we get married and have kids. The kids grow up and get educated and then get married. Somewhere along the way, we buy or build a house. We do better at work and earn more and eventually we retire. Of course, some of us follow a different path and become big businessmen or go to jail or maybe both. It does sound boring, doesn't it? Still, the excitement in your life must lie elsewhere, whether in your profession or your lifestyle. If you go by what Value Research will recommend, your life's financial plan is going to be boring, dull, and in all probability, without any negative surprises. Surprises are the last thing you want while planing your financial life.
There's a great advantage that comes from the cycle of most people's lives running to a common pattern-their financial planning can be to a common pattern. What follows is an article in three easy-to-digest parts that lay out the basic recipe that you can follow to plan an entire lifetime of investment.