Facebook TwitterLinkedInYoutubewhatsapp Start Planning for your Financial goals
Schedule Your Free Consultation
  • Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
Holistic investment planners, financial planning Chennai, Private wealth management Chennai

Holistic investment planners, financial planning Chennai, Private wealth management Chennai

Financial Planning chennai India, Private wealth management chennai India, Investment Advisory India, Systematic Investment Plan, Mutual Fund SIP, Mutual Fund ELSS, Tax Saving scheme

  • Home
  • About Us
    • Who we are & What we do
    • Services
      • Financial Road Map
      • Retirement Roadmap
      • Asset Allocation Plan
      • Webinar
      • Money Management
      • Wealth Management
    • In the Media
    • Testimonials
    • What Makes Us Different
    • How we can help you
    • Specialties
    • Honors and Awards
    • Vision & Mission
  • Resources
    • Blog
    • Articles
    • Podcast
  • Ideal Client
  • Contact Us
What an Investor Needs to know before Investing about Asset Classes

What an Investor Need to know before Investing about Asset Classes?

by Holistic Leave a Comment | Filed Under: Investments

Making the right investment plan is an interesting way to multiply an individual’s savings. How well the planning could be done? From where should it begin? How is going to grow? Isn’t it very curious to make money multiply?

There is a saying, “Anything that started well, ends well”.’

Read ahead to know where to start and how to go ahead with your investment planning.

Know your objective:

Benjamin Franklin rightly said, “If you fail to plan, you are planning to fail!” So, decide your objectives based on three important things:

1. The time period you are intending to invest your money.

2. The level of risk you are ready to take with your money. Investment planning using different asset classes requires making decisions based on your risk tolerance. If you wish to take more risk and need more returns in spite of market risk, then go for equities or stocks . Instead you may want a constant return of money even though the return may be low. In such a case Fixed Income Instruments may be the better option.

3. Choose the right product after analysing each one of them well.

Hence, it is important to learn about the different asset classes available in the market. Knowing in detail about the asset classes helps in planning asset allocation meticulously.

The Characteristics of Asset Class:

Based on the investment objective, let us now learn more about asset classes.An asset class is a group of investment options that have similar characteristics but are individually unique. Sometimes, specific characteristics may overlap but still each asset class is unique. Neither any asset class can be a perfect substitute to another not we can compare one over another.

For example, nowadays, we have different options available to cook. Right from kerosene stove, gas stove, hob to microwave oven and many more. However, we cannot compare one over another as each product has its own advantages and disadvantages. Asset classes are like the building blocks of a good investment strategy.

Learn better about different types of Asset Classes:

No asset class can be defined as ‘right’ or ‘wrong’ to invest. It is all based on the investor’s objective and needs and preferences. Pros and cons of each asset class needs to be investigated before investing. Let us look at some of them individually.

Cash:

Cash can be the physical currency or the cash in bank which is available for withdrawal at any needed time. If the investor needs money back quickly and cares only for the principal, cash is the safest option. Cash has safety and liquidity. For example, in case of emergencies like hospitalisation, cash will be required immediately and you need not wait to gather your resources. But, with the growing inflation rate and lower interest rates,the return is also lower than other asset classes.

Fixed Income Instruments:

Instruments like bonds, securities that yield fixed or periodic income come under this category. These offer steady growth of principal. The security will be high and the right option for those who has low risk tolerance. One can invest in debt mutual funds to invest in a diversified debt securities. About the cons, one can get the returns after a long period where money is kind of locked.

Equity:

Investing in equities, stocks of companies, yield higher returns over long periods. You can invest in equities directly or through equity mutual funds. They are easy to liquidate. Also, it has the potential to beat the inflation. Whereas investing in equity requires a very strong expertise, as little knowledge of it may end you up in high losses. Equity prices are prone to wide fluctuations leading to losses, forcing the investor to sell at the wrong time. Also, slumps in equity market may last for a long period.

Physical Assets:

The investor may opt to invest in physical assets also. Investing in real estate will be a good bet. This class gives a psychological comfort of safety. It fetches good returns in the long period. But valuing real estate is hard, requires expertise employed before investor is buying value for his money. Huge amount of money needed (affordability) to invest, sometimes goes beyond affordable limit. This may restrict investments in other classes. High maintenance will also be required. Also, it has a very less liquidity.

There are other asset classes available in the market like gold, commodities, and collectibles. Asset classes are wide and varied. No single asset class will meet your requirements. Only a combination of these asset classes covers most needs and goals .

“If a man empty his purse into his head no man can take it away from him because an investment knowledge always pay the best dividend.”― Benjamin Franklin. Knowing the asset classes gives you the ability to choose among them. This helps to allocate the money in different asset classes wisely, based on your investment objective and grow the return the way you need.

If you have any comments or questions, write them in the comment box below.

Or are you interested in creating a Comprehensive Financial Plan for your financial goals?

Skip the queue by registering for your 30 Minute FREE Financial Plan Consultation. Click the ‘‘BOOK YOUR SLOT NOW!’’ button below. 

Reader Interactions

Previous article: 5 Critical Warning Signs or Indicators of a Financial Trouble
Next article: Is your financial plan really practical and workable?

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Client Login

Recent Posts

  • How to Become a Crorepati by just Investing Rs. 10000 per month?
  • How to invest in Mutual funds without losing a single rupee?
  • Chit Funds vs Mutual Funds: Which is better to invest in the long run?
  • Max Life Flexi Wealth Plus: Review (2023) – Should you buy?
  • LIC Dhan Varsha Insurance Plan: Complete Analysis & Review – Should you buy? 
Jey S
Jey S
24. September, 2021.
I have been using Holistic Investment Planners for the last three years. Mr. Srinivasavaradhan answered all my questions and doubts very patiently during the first free consultation. I was able to clearly define my short-, medium- and long-term goals once I signed up for the comprehensive plan and got their investment plan suggestion to achieve my goals. They are very polite and highly professional whenever I contact them for any queries or make investments. They never pressurize you to invest on their recommended financial products. I would have been lost money by investing directly without their help since I do not have time and knowledge about different financial products. Risk planning is also done as part of financial planning. Truly, they are holistic planners when it comes to your financial planning. They help you to define your life goals, understand your financial resources and establish a plan to invest towards reaching those goals. They do review your plan as you progress to make sure that you are on correct path to achieve those goals. Kudos to the team and keep up the good work!!! I am happy that I found holistic investment planners for my financial planning and management.
aksaswadkar
aksaswadkar
24. September, 2021.
I was about to retire and really not understanding how to invest money to have financial freedom and fulfilling my goals. Was desperately searching on internet way out and fortunately came across Holistic Investment Planners. I read number of articles on their website and realized that this is the agency which I want and engaged their services for my retirement planning. It is an excellent experience to be associated with Holistic. Right from day one our interaction was fantastic and they gave me such a wonderful plan that I had never imagined. I am fortunate enough to be in the client list of Holistic. I have recommended Holistic to my friends as well.
Lionel Faber
Lionel Faber
16. September, 2021.
I've been availing their services for the past year. They are highly knowledgeable in the field and are very patient with all doubts and queries. Personalized financial planning is provided keeping your short term, medium term and long term goals in mind. They do not pressurize you to purchase schemes of their choice. They provide their input and suggestions and leave the decision up to you which shows their honesty and high principle.
Sridhar
Sridhar
8. September, 2021.
Financial planning brings peace in life. Holistic Investment have supported in arriving financial plan based on future goals. My investments are regular since then. They are professionals in their business, will recommend others.
Nitesh Agrawal
Nitesh Agrawal
6. September, 2021.
I have been using Holistic Investment Planners from last one year. The journey has been fantastic. Being a finance person myself I always thought we can look after and plan own finances also. However, due to lack of time and deciplain the things are not always as desired. After joining with Holistic Investment for the first time Icame to know the Financial goals and quantified them. Some dreams were unrealistic based on the earnings and savings so had a reality check. Also got the information and deciplain of investing on regular and more rewarding securities. I definetly suggest to use Holistic Investment Planners. They are professionals, available and hear youor full story before presenting plans. They are flexile in the sense if there are some urgent deviations required, they help to plan the same. For all professionals/individuals I would suggest using professional help of Holistic Investment Planners for best results in long term investment and financial goals achivements. Last advise will be to start early in your life. It really pays well to start in the beginning itself else the dreams needs to adjust :)
Swetha Vasanth
Swetha Vasanth
6. September, 2021.
This is my first year service with the Holistic Team and I would say that they are very much helpful in creating a financial plan and follow ups during the year. I would definitely suggest them if anyone who is willing to proceed with their savings professionally.
Joseph Mathias
Joseph Mathias
6. September, 2021.
I came to know about Holistic Investment Planners online while searching for different investment ideas. Once I contacted them the journey was very smooth. Mr. Ramalingam explained all the aspects of Financial planning in detail and it opened my mind. I realized how important it is to have a Financial planning. Mr. Rajan suggested all the requirements as per my goals and made a Investment plan keeping in mind of my goals. I started my Investment journey with them. I wish I had done it some years back then it would have been in a different level. Review meetings were held every six month to check the implementation of the plan and check the results as per the requirements and to check if any changes required. Overall it was a good experience with Holistic Investment team and would like to continue in the years to come.
Srinvas Kannan
Srinvas Kannan
30. July, 2021.
I came across Holistic investment planners almost 5-6 years back, but I did not have the trust since I had met a few of them who did not sound promising. Then I started investing through a financial advisor of my friend. After 4 years of investing the returns were very low. I was disappointed and started looking for financial advisors when I came across Holistic investment. I had a detailed discussion about my goals and the way they would approach achieving my goal before deciding to switch my investments to them. After a thorough analysis of my then existing portfolios, they suggested new ones and we zeroed-in on 6 schemes/funds where our investment would be split. I am glad I made the decision of switching over and taking Holistic planner's advise, my returns are handsome and I only wish I could have taken their help/advise 5 years back itself. Neverthless, I would like to recommend their services for investment and financial advise if someone is serious about their investments.
Shivaram Andiappan Selvaraj
Shivaram Andiappan Selvaraj
3. July, 2021.
I got a free first time consultation. I got my doubts resolved. They also gave additional advises for investment planning which was also useful.
Nellai B
Nellai B
26. June, 2021.
I have been associated with them for the past three years. They are very professional and polite in answering all our questions. I have complete trust in their suggestions. I strongly recommend for anyone. I am looking forward to have strong and successful association with them.
Google rating score: 4.4 of 5,
based on 61 reviews

Footer

  • Articles
  • Gallery
  • Ideal Client
  • Jobs(Full Time)
  • Podcast
  • Services
  • Testimonials

Connect With Us

Holisticinvestment.in
10/15, Second Cross Street,
Seethammal Extn.,
Teynampet,
Chennai – 600 018,
INDIA.

Copyright © 2022. Holisticinvestment.in | All rights reserved.    Cared with ❤ by T-Square Cloud

×