Money is vital to one and all. However, the fact that a few people in this world have it in abundance and a few strive extremely hard to earn it has increasingly become a stark reality. Thus, it becomes imperative for all of us to make smart investment decisions very early in our lives in order to lead a peaceful life, especially after retirement. Please note that the best time to start investing is now, irrespective of how old you are. Remember the adage ‘it is never too late to begin investing money’. Smart investing decisions would reap lucrative results, especially in the long run and would help you immensely in living your life the way you want, while covering up for phases of life where you would experience financial difficulties. Contingencies, uncertainties of the future, and the fact that we don’t know how the future would pan out makes investing all the more imperative. Please remember that contingencies such as accidents, diseases, health issues, and physical impairments, might critically hinder your money-earning ability through the traditional means, at a later part of your life. This is where your smart investment decisions would come in handy.

Saving money is critical and would cover you for many future expenses such as children’s education, marriage, buying new vehicles, and making house renovations. Yes, saving money gives you the cushion that you would need for the future, but it is here that you would need to understand the major difference between ‘saving money’ and ‘investing money’. Remember that you save money with the sole objective of spending money later. Therefore, your savings here would not increase or multiply your wealth. This is where investments would come into play. If you invest your money into various debt or equity avenues, it will not only help you in spending the money later in the future, it will multiply or increase your wealth as well and would thus, improve your financial position. Therefore your savings base would increase automatically, making life a much smoother ride, going forward.

Investing decisions in debt or equity would depend largely on your risk appetite, financial resources, risk profile, and investment objectives. Therefore, it is advisable that you perform an online risk profile with any prominent stockbroker or investment consultant before investing your hard earned money. This would help you know whether you are conservative, cautious, aggressive, or moderate investor. Importantly, risk profiling is a potent tool largely due to the fact each investor has a different way in which he/she would perceive risk. Once you know your risk profile and your risk appetite, it becomes easy for you to choose an appropriate asset allocation (debt or equity markets, real estate, commodities, etc) that fits your investment needs.

Asset allocation helps you diversify your portfolio effectively, especially under the expert guidance of noted stockbrokers and investment consultants. Your investment consultants could help you spread your money into different asset classes, industries, and sectors, reducing your investment risk to a large extent while making you enjoy the fruits of maximized returns through your diversified asset portfolio.

Therefore, become a ‘smart investor’, make smart investment decisions, and become aware of all the available investing opportunities. This would allow you to pick and choose the returns that your money can generate. Happy investing! 

Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing.