These 5 steps could help in reducing investment-related risk:-
1. Segregate life goals / needs by fixing time horizons for achieving each of them.
2. For each goal / need, assign a specific investment category, based on the risk, return and liquidity it offers, to avoid frequent churning.
3. Select sound products in each category after evaluating their strengths, unique features and associated costs and invest in them systematically.
4. Track, review and re-evaluate the performance of products periodically, and shift investments systematically to ones with lower risk when approaching a goal.
5. Maintain a debt-equity investment ratio as per age, working status and overall risk appetite.
1. Segregate life goals / needs by fixing time horizons for achieving each of them.
2. For each goal / need, assign a specific investment category, based on the risk, return and liquidity it offers, to avoid frequent churning.
3. Select sound products in each category after evaluating their strengths, unique features and associated costs and invest in them systematically.
4. Track, review and re-evaluate the performance of products periodically, and shift investments systematically to ones with lower risk when approaching a goal.
5. Maintain a debt-equity investment ratio as per age, working status and overall risk appetite.