Like everyone else, I also started my financial journey with the pledge that I will buy only handful of investments. But as I started understanding investments I started coming with excuses to add new exciting investment to my already diversified portfolio. Believe me, every time I pledged that this is last time and I won’t add unnecessary investments which are not tagged to any goal, but there is always some exciting new investment coming down the road. The situation started becoming so messed up that instead of 4-5 funds, I ended up with more than a number of funds possible to manage for an individual, I had to scroll several times on my Value Research Online to see entire portfolio. I lost track of funds and it’s objective for being part of my portfolio. That’s when I decided to go back to basics of tagging (labeling) each investment.
As with any other person starting investments today, I have had similar questions on types of schemes available from the mutual fund asset management company.
Believe me, there’s a jungle out there. More than 2,500 schemes to choose from. You are spoiled with choices. Without any professional guidance, either we end up choosing the one being marketed heavily with the fat commission for seller or misfit for our scenario. In a worst case, due to so many choices, we drop the idea of investment altogether and continue with bank deposits.
There are several ways to participate in the market. Some prefer big bang entry while some prefer staggered entry into the market. Both have their own advantages and disadvantages. In investment terminology, big bang (usually) known as Lump Sum investment and staggered is known as Systematic Investment.
Parents have very important role to play in raising next generation, they influence major decisions of next generation from taking courses for better future to choosing company to work for better prospects. Their experience of life certainly is a big help for next generation.