financial planning-Win big by using all asset classes

To a large extent, the fear of losing money prompts people to take such safe routes.But being aware of the real demon is extremely important. Consider this: Over a 34-year period, the sensex has delivered a compounded annual return of 17.85%. So, an investment of Rs 1 lakh 34 years ago is now worth Rs 2.68 crore. And such a phenomenal return has come despite some major events, crises, scams and disasters during these years.

However, very few investors have made such returns.That's because people who have overcome the fear of investing may still get caught in the behavioural biases of overconfidence, thereby at tempting to time the market to beat it and in the process losing money.

Creating wealth lies in simplicity. Let me explain this in cricketing lingo: The financial planning: ‘Failing to plan is planning to fail’. Most people do ad-hoc investments.