financial planning-Win big by using all asset classes

Target score: Irrespective of the team batting first or second, each team keeps a target score in mind. Similarly, investors must ask some questions before they start their investment journey. These can include: What are they saving for? How much will they need for their children's education? How much should be the retirement kitty to live a comfortable retired live? etc.h Game format: The strategy for a 20-20 game is different from a one-day match which, again, is very different from that of a test match.Likewise, short-term goals must be funded by fixed-income products, whereas growth assets such as equity or equity funds must fund only long-term goals. h The team: A winning team comprises few good batsmen, few good bowlers and good fielders. Similarly , not always all asset classes perform simultaneously. It is seen that each asset class performs under a certain situation and economic environment financial planning. So, an investor's winning team must comprise of investments across all assets classes, such as fixed income, equity, gold and real estate.h Optimize player's potential: Investor's risk tolerance and time horizon of the goal plays a critical role in deciding the winning combination of assets. The winning team must try to optimize returns within each asset class. For example, if someone is conservative and has a higher debt allocation, then FMP and debt funds for over 3-year period, or tax-free bonds could be a better alternative to FDs.h Focus & hold your nerves: The mindset of players always plays a crucial role in winning. The winning team's body language gets reflected on the field. Players are also trained about the external environment which they can control, so all they should do is to control their own self. Investment is no different. No one can ever predict or control the market, so one has to keep their goals in mind and have to ensure that the products selected will enable them to reach their goals by re-balancing their asset allocation periodically .h Keep faith in your team: Holding one's nerves becomes easier if there is conviction in the products one is invested in. Ask yourself simple questions like: Is it going to help meet any of the goals?