Conventionally, Indians used to invest primarily in real estate, fixed deposits and gold but the past couple of decades has witnessed a change in the traditional pattern of investment with financial assets coming into play. There have been efforts towards awareness and promotion of investing in financial assets. Thus, investors have become a lot more open to other options but still, the overall penetration has been low in India. The chart below states the tendency in India to invest in traditional forms; real estate emerges as the most preferred option.
Seasoned professionals take care of the volatility, say, for example, during elections, and invest wisely. Peace of mind and a sense of assurance that an investor receives are also some factors for you to consider while deciding whether to hire an investor or take an individual decision.
While taking fee-based advisory is recommended, it is very important to visualise and be aware of the risks associated with these services. Trust is a vital element here. It has been observed that almost 71 per cent of the Indian investors consider their advisors as trustworthy; globally it is 54 per cent. But even if you have hired an advisor, you need to understand the rationale behind his strategies and plan. Financial advisors charge a fee, either as a percentage of the gains or a flat management fee. Both can eat your profits after tax deductions. Fee-based advisory in India is not regulated and there isn’t any certification for being an advisor. There are fundamental flaws that can be cited. Agents can act on incentives that the mutual fund companies in the market offer and some suggestions can be purely based on information floating around, without making appropriate calculations.
There are a few points that you must keep in mind when you decide to invest on your own. The prominent one is to have a goal-based approach; consider your short-term and long-term plans. It is also important that you do not waver during market fluctuations and stay focused. Consider investing in mutual funds. By pooling in funds from a large number of individuals, they can hire a team of professional fund managers that can manage your money better. Instead of speaking to intermediaries such as agents, consider purchasing your mutual funds from Finserv MARKETS, an online platform. Finserv MARKETS offers a wide range of mutual funds across categories – debt, equity and hybrid funds for instance. Finserv MARKETS charges you zero commission and gives you complete transparency through the entire process, giving you the confidence you need to make such important financial decisions.
When you are looking to pick a mutual fund to invest in, there are two primary factors to look at – your risk profile and the fund’s past performance and rating. Your risk profile may change with your age and your goals. Younger investors typically have the ability to take on more risk and may lean more heavily towards equities. In accordance with this, you can pick equity-focused mutual fund from Finserv MARKETS. On the other hand, older investors may choose to balance out their risk. Hybrid mutual funds, available on Finserv MARKETS, have a balance between debt and equity. Meanwhile, those approaching retirement may choose to invest heavily in safer debt-focused mutual funds in line with their risk profile. Finserv MARKETS offers mutual funds across the spectrum that can the needs of a diverse set of investors.
Indian investors are definitely going to relocate more holdings towards financial assets and going to get great benefits over the next ten years and this will definitely open up opportunities to have a structured and regulated financial advisory.
Finserv MARKETS, from the house of Bajaj Finserv, is an exclusive online supermarket for all your personal and financial needs. We understand that every individual is different and thus when you plan to achieve your life goals or shop for the gadget of your dreams, we believe in helping you Make it Happen in a few simple clicks. Simple and fast loan application processes, seamless, hassle-free claim-settlements, no cost EMIs, 4 hours product delivery and numerous other benefits. Loans, Insurance, Investment and an exclusive EMI store, all under one roof – anytime, anywhere.