Why You Seriously Need To Think About Investment Planning
Jul 03, 2018

Author: PersonalFN Content & Research Team

I met one of my cousins few days ago and we landed up talking about finances.

We discussed investments, and he realized he had never given a serious thought to it. All he has are some insurance policies, fixed deposits, and SIPs (Systematic Investment Plans) in mutual funds which a bank recommended.

And I was surprised; but at the same time realized that there may be many naïve investors like him.

So, it decided to write this piece, which I hope proves illuminating.

I believe buying insurance products that commingle investment needs has not made anyone rich. This holds true for bank fixed deposits too.

While there are a good number who also invest in SIPs offered by mutual funds, not all mutual funds are best suited for investors .

Investing is a serious business, and prudent investment planning is essential so that you accomplish the financial goals you’ve envisioned.

There’s no point aping or mirroring someone else’s investment portfolio; because each one’s risk profile, investment objective, investment time horizon, and financial goals are different.

Barry Ritholtz, an American author, newspaper columnist, and equity analyst has aptly said, “When it comes to investing, there is no such thing as a one-size-fits-all portfolio.”

If you really wish to build wealth and achieve your financial goals, crafting your own portfolio wisely is a must!

Aimlessly investing in multiple investment avenues is no good. You ought to pick investments that are most suited for you …and once that is done, even review the investment portfolio.

At PersonalFN, we believe that investment planning is very important and at every stage. You got to assess the risk-reward regularly, assess if the portfolio is well-diversified, and evaluate if the investments are performing so that you are on-track to achieve your goals.

Mutual Funds are a potent way to generate wealth, and there are various types of mutual fund schemes to fit your risk profile. You can start investing smaller sums via SIPs regularly and build a significant corpus in the long run. And if you opt for a Direct Plan, you can enjoy the sweet fruits of power of compounding even more.

[Read: Even 1% Difference In Expense Ratio Can Make A Huge Difference To Your Investments]

But selection plays a crucial role to make SOLID gains with mutual funds.

With the number of investment schemes out there, the task of selecting the best mutual fund scheme has become difficult.

And basing your investment decision on star ratings isn’t a prudent idea, as most are merely focus on past returns.

[Read here: Why You Should Stop Looking At Mutual Fund Star Ratings Now]

Likewise, there’s no point seeking advice to invest in mutual funds from a bank, because they put their interest before your own. Note that a big boost to a bank’s earnings comes from commissions, not from the quality of advice!

[Read in detail: Why Investing In Mutual Funds Through A Bank Is A Bad Idea]

So, what’s the way out ?

PersonalFN has more than a decade experience in mutual fund research.

Our premium research service ‘FundSelect’ is celebrating its fifteenth anniversary. And as you may know, so far it has helped to beat the market as much as 80% abetted by PersonalFN’s time-tested hard-core mutual fund research methodology.

The motto of FundSelect is 'Consistent Returns for Long Term Wealth Creation'. And as reflected in the graph below, we have lived up to it.

FundSelect's Recommended Diversified Equity Funds Vs. S&P BSE 200

Performance as on March 28, 2018; Past performance is no guarantee of future results
(Source: ACEMF, PersonalFN Research)

In FundSelect we cover detailed analysis on equity and debt schemes, every month and provide a view: Buy, Hold, and Sell.

Not only that, you also get regular updates on our views and performance of our past recommendations and open position for easy tracking.

For those of you who wish to hold solid mutual fund portfolio, there is a ‘FundSelect Plus’. It is strictly a model mutual fund portfolio recommendation service which provides you access to various ready-made mutual fund portfolios recommended by PersonalFN.

And the three equity mutual portfolios: Aggressive, Moderate, and Conservative have delivered stellar performance. Take a look…

Note: Calculated based on NAV as on 28-Mar-2018, Return from 02-Jul-2007 to 28-Mar-2018
(Source: PersonalFN.com)

While the equity fund portfolios outperformed the S&P BSE-200 Index by about 80-110%, the debt portfolios classified based on your investment time horizon (viz. less than 3 Months, 3 - 12 Months, and More than 12 Months), too, have done well...

Note: Calculated based on NAV as on 28-Mar-2018, Return from 02-Jul-2007 to 28-Mar-2018
(Source: PersonalFN.com)

FundSelect Plus also carries recommendations on Tax Saving mutual funds (also known as Equity Linked Saving Schemes), which can help you in tax planning, i.e. reduce your taxable income and potentially earn you a higher return over the long-term.

Plus, those who wish to build a portfolio based on the “core and satellite” approach of investing, there’s PersonalFN’s special report: The Strategic Funds Portfolio For 2025.

Core and satellite is a time-tested investment strategy used by most of experienced and successful investors to build substantial wealth over the years. With Strategic Funds Portfolio For 2025, you too can be a part of this league. In this report, we have recommended a portfolio of SIX equity mutual funds with solid growth potential in the next 8-10 years.

In short, PersonalFN can do all the hard work of selecting the best mutual funds for you !

If you are already holding a mutual fund portfolio, timely reviewing the portfolio is highly recommended. PersonalFN can help you even with that.

[Read: Why You Need To Get Your Mutual Fund Portfolio Reviewed Right Now!]

Happy Investing!

Editor’s note:

Before you go, here’s an exclusive invitation to become a member of Lifetime Wealth Alliance.

And here’s what you will get as PersonalFN's Lifetime Wealth Alliance member. Full access to

✔ FundSelect

✔ Debt Select

✔ FundSelect Plus

✔ The Retirement Letter series

✔ The Strategic Funds Portfolio For 2025 [2018 Edition]