Like maximum of the people you too have habit of saving some part of your earnings and investing that saving for future purpose. This is a good but it is found that maximum of people make investment but with no plan. Hardly a few people are found to be having an investment and you might too fall in the category of the people who don’t have any investment plan.
Why an Investment Plan?
Planning is essential for success in any adventure or work. Truly speaking investment is also an adventure. Do you think that you can reach to your goals without any plan? Do not you plan your journey? Do not you plan your future? I think your answers to these questions will be yes. So why not to have an investment for your hard earned money. Always remember that it is your money that will help and assist to realize all your future plans and dreams.
What is Investment Plan?
Investment plan is written plan about all the investment activities and strategies that you will for the period. An investment plan is useful for pre decided period only. This plan should include everything from amount of money, type of assets in which to invest, risk, time horizon, expected returns and expected losses before you will sell the assets and the periodic review. This may look like very conservative approach of investing but when you start investing with this way you will find the benefits of the approach as this will ensure that you are not losing any money or your capital. This might seem to be strange but it works like panacea.
Investment plan is imperative before you invest into any kind of assets. And that too you should write it beforehand when investing as when assessing the investment values and time horizon, the clear picture is in front of you. Writing a proper investment plan is as important as investing and choosing right asset classes.