May 28, 2009

Retirement Planning:

Retirement planning:

There are various investment options available to plan your retirement. In India people opt out for very secure kind of plans such as Insurance, FDs, PF, Gold, Real Estate, MFs, and Equities etc. the last two are the least preferred.

Investment planning must have three main features: Regular benefit from the investment, Capital appreciation & Liquidity.

I would say that Equities can have all these features & hence can become a great tool for your retirement planning. Investment in equities means you are investing in business. With growing demand the business has to grow & hence the profits can grow. This results in dividend incomes which can be regular. Apart from that, as the business grows, it props up the company valuation & gain in the share price. This results in capital appreciation. Further, you have the option of selling part stake of your portfolio when you are in need of money; still you remain in the business & can enjoy benefits of growth.

It becomes very imperative to understand in which company & business you are investing your money. You can seek advice of experts which is widely available nowadays. India has great potential as 33% of population is between the age group of 15-40 which will create huge demand for good & services going forward. If foreigners are betting hugely on India, why can’t we? So, I would suggest you to start investing in equities, earlier the better, & become a part of YOUNG INDIA GROWTH.
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