Pixie’s post got me started..
While she has just stated how she goes about her investments, I found quite a few places where I disagree. There are a lot of myths about investments floating around ! Not always is the right advice available and sellers always have ulterior motives. I thought maybe I bring some of my work to my blog for a change… Advising portfolio’s is my work, my work details can be found HERE
I thought maybe I should do a series of posts on how to construct a portfolio for yourself.
Here is part 1 :
When you start building your investment portfolio first up you should ensure enough protection for your life and for your loved one’s if you were not there… here are two things you must get for yourself first up.
First and foremost get yourself a very good comprehensive Mediclaim. Before you worry about retirement, living too long, childrens marriage or education worry about your health and uncertainties. Get a good mediclaim as diseases can strike even the most healthiest of people. Ask plenty of questions and always insist to get the wordings of your Mediclaim policy and read it before buying it.
Look out for the Exclusions ! Be sure of what you buy ! Most of the dissatisfied customers are those who just trust the seller’s word and buy products without actually checking the product they are buying and then blame all and sundry.
You dont buy a Saree or a vegetable without feeling or seeing it do you ?
Don’t do it when you are buying any financial product either, infact they must be bought with extreme care and due diligence.
2.) Term Insurance
If you are the bread winner of your family, get yourself a very good term insurance. Generally opt for insurance cover that is 150 times your monthly income or expense as per your suitability. For Eg. Monthly exp Rs. 10000/- go for a term plan of Rs.15,00,000/-
* Today if a 35 year old male (non-smoker) wanted to buy Term Insurance worth Rs. 1 crore his annual premium for 35 years would be Rs. 10,949/- vonly !!!!!!
This will take care of your basic need of protection. Term Insurance Premiums are quite low and easy on the wallet. Do not buy insurance plans for kids or people who are not earning. Loss of loved one’s is an emotional loss that no Insurance policy can compensate, Insurance can only compensate for the loss of income, so only insure people who are earning money.
Insurance is basically an expense and should be treated that way.
PLEASE NOTE MOST IMPORTANT ADVISE : Do not mix Investment & Insurance
Investments only should feature once you have got protection for yourself.
There are various investment options like Bank FD’s, PPF, Recurring Deposits, Bonds, Stocks and Mutual Funds which we shall cover in due course.
There is a saying, Good advice does not come free… Well I am hell bent upon proving that cliche wrong. You can pester me with all your queries and I will advice 🙂 🙂
Its on the house folks !:D 😀 😀 😀 😀