Investment strategies for your long term goals

Podcast Duration: 07:34

Hello friends, Angel One ke is podcast mein aapka swagat hai!

Doston lockdowns ka time ab mostly and hopefully ja chuka hain, and economic recovery is in the air! Is beech, kai log apne investment goals aur personal finances ko review kar rahe hain. And why not! Kehte hain ki building something meaningful takes time - and investments ke relation mein this saying makes so much sense, haina? Have you ever seen someone become a millionaire overnight? Achcha bitcoin millionaires ki baat nahi karte hain, kyunki most of the times, such overnight millionaire schemes can also drive your few thousand rupees into double and triple digit figures. But there is a proven and safer way of getting rich over the course of your life - and that is, by focusing on the long term. No matter what your long term goals are - whether you want to buy a villa on a beach, or simply become rich by your fifties - investment will inevitably form a major part of this strategy. Isliye, aaj hum long term investment ki subtleties aur strategies par baat karne waale hain. So are you excited? Then let's start right away, by looking at these five major steps!

Number 1 - Long term investments can help you see risk in a different light.

Doston long term investments aapke paise ko lambe samay ke liye underlying wealth building process ka exposure dete hain. Toh jab aap apne funds ko 20 se 30 years ke time period ke liye invest karte ho, toh you should focus on how sustainable that wealth building process is. For example, agar aap apne funds ka tenth portion kisi agro-food mutual fund mein invest kar rahe ho, toh your money is likely to be safe despite the ups and downs that the industry will face in the foreseeable future. Kehte hain ki 2008 financial crisis aur covid crisis jaise hiccups, jo short term mein significant losses demonstrate karte hain, woh long run ke growth curves mein flatten ho jaate hain. That's why, despite having a low risk appetite, long term mein invest karte hue aap apne funds ko slightly riskier instruments ka bhi exposure de sakte ho. BSE sensex ki growth aapko is subject par kuch important insight degi. Now, if you have been following the markets closely in your lifetime, then you probably know how the Sensex has crashed multiple times in the last few years. Iske bawajood, if you had invested 1 lakhs in BSE sensex in 1980s, then this value would be 4+ crores today - this statistic is your window into how long term economics differ vastly from short term investments!

Number 2 - Your tax saving strategy will have a significant implication on your long term investments

Doston taxes are a constant source of stress even for the expert financial planners - so don't feel beaten down if you are struggling to save taxes. Lekin if you are wondering whether tax implications will significantly affect your long term investments, then you are thinking in the right direction. Now imagine ki aapne kuch relatively stable funds identify kiye hain, and you are considering saving your retirement money on these funds. If you manage to save 2 crores by the end of 20 years on a mutual fund, toh exit karne ke time par aap current tax regime mein around 20 lakhs taxes mein pay karoge. That's enough money to buy a good car for a middle class family, and to buy all the fuel they will ever consume to travel over 2 lakhs kilometres. Mere friend Sameer ne mujhe tax saving ke liye kuch important tips diye the. Section 80C mein aapko investments ke through taxes save karne ke liye kuch excellent strategies dekhne ko milegi. If you want to hear about them, don't forget to check out our other podcasts on the subject of tax savings through investments!

So what to do with this information? Yahan par aapki tax planning strategy kaam mein aayegi. Firstly, internet par sabhi tax saving options ko explore karen. For example, PPF, ELSS, National Pension scheme, and so on. Secondly, consult your CA on this subject - you might be underestimating the power of tax planning, but in the long run, taxes can put some major dents to your savings.

Does this make sense to you? Toh dekhte hain third point.

Number 3 - Buy low and sell high - but without the stress

Doston ye strategy equity instruments ke liye zyada relevant hai. Basically, trading mein you make money by buying low and selling high - if we overlook the subtleties and oversimplify trading. But jab aap long term investments karte ho, toh there is a way to consistently buy low and create multiple entry points for yourself. To do this, avoid making lump-sum investments, and instead, make systematic, regular investments of smaller sizes. Is strategy se aap kisi growing fund ya stocks mein systematically, multiple prices par buy karoge, and ultimately, the gains will add up and offset the times when you didn't enter at the perfect price point!

Number 4 - Don't ignore the trends that emerge with time.

Doston, investing in the long term isn't a simple game of finding a high-growth fund and continuing to invest in it for the rest of your life. In fact, kai trends aap apne lifetime mein observe karke kuch impactful money decisions le sakte ho. For example, jab mainstream population ke paas computers aur mobile phones nahi hote the, tab apple company ki stock prices lower levels par float karti rahi. Lekin kuch investors ne Apple mein invest karne ki jagah Steve Jobs ki visionary leadership mein invest karne ka decision liya, and they stayed invested without focusing too much on the short term price movements. In our times, cryptocurrency is a hot subject, and many people are jumping into crypto investments - lekin understanding the real use behind the underlying money making mechanism, and its relevance in the future can give you crucial insights into whether 'hot' investments of today will withstand the test of time!

Toh what did we understand from this story? Ki long term investments ke liye ek dynamic approach lena bahut zaroori hai. Imagine that you have invested in a tech-focused mutual fund, and tomorrow's technologies are created by other companies than today's tech giants. What happens to your investments in such a world? Reflect on these deeper questions to take money decisions that make sense rather than believing in speculations.

Number 5 - Don't lose sight of the bigger picture.

Doston aapne apne friends ko ye kabhi na kabhi mention karte hue zaroor suna hoga, ki life is too short to worry about the future. But we recognize the problem with such a perspective - you might end up saving nothing, and head unprepared into the future. Lekin there is another side to the problem - kuch log long term investing par itna focus karte hain, ki they forget to live their life in the process. It is important for you to enter into your retirement, or save to buy a house without losing the small pleasures that life can give you on the way! Sahi balance strike karna ek meaningful life lead karne ke liye bahut important hai. This is exactly the reason why wealth management plans make sense for some people, who do not want to live their life worrying about how their long term investments are doing.

Think about what you want from life as you set your long term investment goals, since discovering yourself is perhaps the biggest thing you can get out of your life!

Do remember that Investment strategies for your long term goals is not a topic for a select group, everyone should pay attention to this, as everyone has the potential to become an investor. On that note, Angel One wishes you the best in your journey to leading a meaningful and financially stable life in the long term! If you are looking for more knowledge on how to plan your finances for the long term, don't forget to visit for free resources!

Until then, goodbye from Angel One, and happy investing!