1. Get rid of ULIPs
It is advisable to stop the premiums you are paying for the ULIP plans as they are an expensive mode of investment. One should never mix investment with insurance as both have separate requirements in life. Instead, you can take term insurance plans which have lower premium charges and provide higher life insurance cover. Invest in mutual fund schemes for your future goal achievement.
2. Build an appropriate portfolio of Mutual Funds
For long-term purpose, one should have maximum exposure to plain vanilla diversified equity funds and a minimal exposure to sector or theme based funds.
3. Make separate portfolios for separate goals
Some of the goals in life ( Child's higher education or marriage) are long-term oriented with different time spans. It is advisable to maintain separate portfolios for each of the goals so that you can track them separately.
4. Invest systematically
It is very important for you to start your investments by adopting a systematic investment approach. This is an appropriate choice for long-term investors as it not only provides the benefit of rupee cost averaging but also ensures a disciplined investment approach.
5. Add debt
It is important to have some exposure to debt so as to curtail the downfall of equities during falling markets.
It is advisable to stop the premiums you are paying for the ULIP plans as they are an expensive mode of investment. One should never mix investment with insurance as both have separate requirements in life. Instead, you can take term insurance plans which have lower premium charges and provide higher life insurance cover. Invest in mutual fund schemes for your future goal achievement.
2. Build an appropriate portfolio of Mutual Funds
For long-term purpose, one should have maximum exposure to plain vanilla diversified equity funds and a minimal exposure to sector or theme based funds.
3. Make separate portfolios for separate goals
Some of the goals in life ( Child's higher education or marriage) are long-term oriented with different time spans. It is advisable to maintain separate portfolios for each of the goals so that you can track them separately.
4. Invest systematically
It is very important for you to start your investments by adopting a systematic investment approach. This is an appropriate choice for long-term investors as it not only provides the benefit of rupee cost averaging but also ensures a disciplined investment approach.
5. Add debt
It is important to have some exposure to debt so as to curtail the downfall of equities during falling markets.
6. Rebalance your portfolio once every year
After choosing appropriate funds, allocating SIP amount to it and paying the money on time, your work doesn't end here. It is very important for you to continuously monitor the portfolio and rebalance it according to the predetermined asset allocation at least once every year.
All you need to do is follow these basic principles and opt for the right investment approach to easily achieve your goals.
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