Investment planning aims at identifying prudent and lucrative investment strategies in accordance to an investor's financial goals and risk passion.

Prioritization of goals is mandatory before opting for a plan. For example, if an investor wants to invest for funding his holidays the following year, he should choose an investment plan that does not have a three- year lock-in period. Similarly, if he wants to invest for his son’s education or daughter’s marriage after ten years, he should not invest in one-year or two-year bonds for the next ten years. Instead, he must choose an option that matches his investment sphere.

The success of an investor is gauged upon his ability to make the right investment choices. This, in turn, depends on a host of factors like his age, requirements, goals, etc. The choice of the best investment options will depend on his personal circumstances as well as the general market conditions.

Essentially, the right investment is a balance of three components

• Liquidity : The ability and ease to convert an asset into cash quickly

• Safety : Security of investments

• Returns : Proceeds from investments


Investment planning helps in formation of a roadmap for every investment activity, which a person would involve himself in.

The in-depth description of all the major constituents of an investor’s strategy would thus help him perform the following:

• It helps an investor represent himself by explaining his investment features like risk forbearance and personal constraints, and how those relate to his targets and allocation of assets

• Along with including investment guidelines, it also helps him articulate his do’s and don’ts

• The plan also provides a unique framework and guiding principles for making sensible and smart investment decisions. It helps a person to decide upon the right investment strategy and to derive the maximum benefits from his investments. It thus helps him to strike a balance between risk and returns

Online investment plans have been gaining tremendous momentum of late, especially amongst the service class.

No matter how the economy is performing or markets are reacting; there is always ample scope for investors to invest and grow.

Author's Bio: 

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