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Tips for Retirement Planning in India | Retirement Planning Guide

9-points-to-consider-before-retirement

9 Points to Consider Before Retirement

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<h2>9 Points to Consider Before Retirement</h2><p>Retirement is no more a word which means life after 60. The kind of work load that is put on our heads, everybody wants to retire earlier. The question is how many Indians you have seen who retire wealthy and are able to maintain the same lifestyle? At the same time how many foreigners have you seen travelling, who are above 60? Let’s try and see some of the points that may help us plan a better retirement.</p><h2>What are the Tips for Retirement Planning?</h2><ol><li>Retirement is for everybody, whether it be a salaried, self-employed, businessman, or any other occupation. Today even if you are a businessman there is no surety that your next generation wants to join you, therefore you need to leave your business and make sure the income continues.</li><li>Retirement in technical terms is known as point of inflection or when your unearned income becomes more than your earned income. For e.g. if you last drawn salary is 2 Lakhs per month and you also have a corpus which at 6% can give you 2 Lakhs per month, you can retire and pursue your passion. You do not need to work for basic survival after this.</li><li>Most people start planning for retirement at the end, but that’s too late my friend. Retirement planning should ideally begin with your first earnings. A person who starts planning at 25 can retire at 50.</li><li>Don’t be a single asset class player. Most of the people in India become compulsive asset class investors. For e.g. a person who loves real estate will keep on investing in real estate and someone who has more liking for equity will continue to invest there no matter what happens. One needs to avoid such impulsive behaviour and concentrate on portfolio returns. If one asset is not looking convincing, then there is no point sticking to it.</li><li>Don’t underestimate interest rates and inflation. People, who are around 45-50, believe that with their corpus, they will make a FD at 8-9% with which they can manage their monthly income forever. They also believe that the inflation will keep falling in India. Now the above two thoughts are contrarian to each other and one needs to do realistic calculations.</li><li>Find a sound advisor who can help you lay down goals according to priority and then help you make a road map to achieve these goals. Lay emphasis on retirement. Now let’s not even discuss the fee that the advisor should be charging for his services. In the past not paying has proven more dangerous than paying to a genuine advisor.</li><li>Just imagine three phases of life:</li></ol><ul><li><i><strong>Accumulation Stage</strong></i>: When you are earning, you should be able to save higher and people just go opposite.</li><li><i><strong>Vesting stage</strong></i>: When you are nearing the age you have decided for retirement, be sure you reduce volatility in your portfolio. This is also the time to decide the amount you require per month and also a resultant of how much corpus have you finally accumulated.</li><li><i><strong>Reaping stage</strong></i>: Since now you have started getting the monthly income keep an eye on interest rates. Any fresh income that you earn from your occupation now should help you prolong your retirement income or increase the monthly outflow.</li></ul><p><strong>Also Read: </strong><a href="https://zfunds.in/m/7-important-tips-for-mutual-fund-investments-">Best Tips to Invest in Mutual Funds</a></p><ol><li>Ignore peers and concentrate on your court. Sometimes we tend to get carried away by financial decisions our friends have taken for their retirement and on the face of it might look great, but you need to examine the risks closely. Sometimes you can make an irreversible mistake which can prove disastrous.</li><li>If retirement doesn’t sound that interesting, ask your spouse about how she wants to lead her life post 55, give a thought to her desires as well and just filter these desires by what you have so far achieved….you could be shocked.</li></ol><p>Just plan in time for the wonderful years when your responsibilities are over, you can catch up and holiday with old friends, relatives and people whom you just missed being in touch while you were busy grinding in career. Just imagine your passion….is it travelling or photography or that painting you wanted to paint but couldn’t get time to. Retirement is all about planning and age is all about mindset….don’t mix them.</p><p><strong>Read More:&nbsp;</strong></p><p><a href="https://zfunds.in/m/deduction-under-section-80tta">Deduction under Section 80TTA</a><br><a href="https://zfunds.in/m/elss-vs-ppf">ELSS VS PPF? WHERE TO INVEST FOR TAX SAVING?</a><br><a href="https://zfunds.in/m/become-mutual-fund-advisor">How to become a Mutual Fund Advisor</a><br><a href="https://zfunds.in/m/major-mistakes-investors-make-in-their-life">Major Mistakes Investors Make in their Life</a><br><a href="https://zfunds.in/m/rupee-cost-averaging-power-of-systematic-investment-plan">What is Rupee Cost Averaging in SIP?</a><br><a href="https://zfunds.in/m/what-are-shariah-compliant-mutual-funds">Shariah Compliant Mutual Funds - Types, Who can Invest, Minimum Investment</a><br><a href="https://zfunds.in/m/how-to-invest-in-mutual-funds">How to Invest in Mutual Funds?</a><br><a href="https://zfunds.in/m/best-large-cap-mutual-funds">Best Large Cap Mutual Funds</a><br><a href="https://zfunds.in/m/best-small-cap-mutual-funds">Best Small Cap Mutual Funds</a><br><a href="https://zfunds.in/m/best-multi-cap-mutual-funds">Best Multi Cap Mutual Funds</a><br><a href="https://zfunds.in/m/arn-code">ARN Code - Purpose, Registration, Renewal, How to Apply Online</a><br><a href="https://zfunds.in/m/nism-va-certification">Nism VA Certification: Objective, Preparation Tips, Fees, Exam Certificate</a><br><a href="https://zfunds.in/m/mutual-fund-distributor-commission-structure">Mutual Fund Distributor Commission Structure</a><br><a href="https://zfunds.in/m/euin-number">EUIN Number: Purpose, Registration, Rules, Renewal Process</a></p>

List of seven habits of highly successful investors.

7 Habits of Highly successful Investors

7-habits-of-successful-investors

7 Habits of Highly Successful Investors

<h2><strong>7 Habits of Successful Investors</strong></h2><p>The largest dichotomy in investment is the difference between the investment returns and the investor returns. This is also called the behavioural gap. Apart from this there are many things that set apart successful investors from the others. I am trying to list 7 habits of successful investors here:</p><h3>1. They have a strong emotional control:&nbsp;</h3><p>The markets run on emotions of greed and fear and to have a control over them is one of the important factors in deciding how successful you will be as an investor. With huge influx of data in various forms of media, it is tough to decipher the information which is useful and the one which is not.“The information you have is not the information you want. The information you want is not the information you need. The information you need is not the information you can obtain. The information you can obtain costs more than you want to pay.” – Peter L. Bernstein</p><h3>2. They thrive on Risk</h3><p>&nbsp;A ‘risk’ is present in probably everything in life. A smart investor understands that chance of succeeding anything in life is 50:50, but he would put strong risk control measures. Risk has to be managed and not to be avoided</p><h3>3. They understand value</h3><p>&nbsp;Value is everything, price is nothing. Sometimes a market correction may be a trap if you are trying to seek price. One has to know the intrinsic value of the investment rather than become a trader by trying to get the right price. A good company will never be available cheap and no price is cheap for a bad company</p><p><strong>Must Read: </strong><a href="https://zfunds.in/m/7-important-tips-for-mutual-fund-investments-">Important Tips to Invest in Mutual Funds</a></p><h3>4. They invest for the long run &amp; plan inter-generational wealth</h3><p>&nbsp;There could be a debate on what is long term but one has to just understand that investment portfolios are largely perpetual. One may derive income from it or use it partially to fund goals but eventually some part of the portfolio will always remain invested</p><h3>5. They learn from their mistakes</h3><p>&nbsp;Successful investors understand the fact that they cannot avoid mistakes, but they try to learn from them and understand that every loss teaches a lesson and they take it in their stride to make better investing decisions in the future</p><h3>6. They understand equity is a wealth creator</h3><p>&nbsp;Business is the highest return creator and people who understand this know that they will either put money in their business or buy other businesses (Equity). In the longer run nothing has beaten equity and it will continue doing so</p><h3>7. They concentrate on Portfolio Returns</h3><p>Successful investors do not get entangled in scrips or schemes or asset classes, but look at overall returns their entire money is making. This habit also helps them over diversifying and maintaining a manageable portfolio</p><p><strong>The bottom line: To make your portfolio work for you efficiently, one must adapt best practices and the best practices are mostly hidden in behaviour rather than in the markets.</strong></p><p>The financial world is always very dynamic, but the above habits of investors make them successful. Build a smart plan, stick to it, save enough money, select reasonable investing options and always be aware of taxes. Adopting these necessary habits for investing can definitely make you a successful investor.</p><figure class="image"><img src="https://lh3.googleusercontent.com/_IeXgg3D8cW8sEa8Tv_rJVK0q4s7USDrdKdJC1lM-WNUyDJDVCIu-jE1GN8HSp3dYrylZStPAfYfgb7rp7IOvMHNx-2CvrpHh4jsl5g0vNWYS5SOnX45BtQo_JNEb-JCLakg4Qg" alt="Warren Buffett quotes"></figure><p><strong>More Information:&nbsp;</strong></p><p><a href="https://zfunds.in/m/how-to-invest-in-gold">How to Invest in Gold ?</a><br><a href="https://zfunds.in/m/how-to-invest-in-mutual-funds">How to Invest in Mutual Funds?</a><br><a href="https://zfunds.in/m/how-to-select-the-right-investment-advisor">How to select Right Investment Advisor</a><br><a href="https://zfunds.in/m/icici-prudential-freedom-sip">ICICI Prudential Freedom SIP</a><br><a href="https://zfunds.in/m/become-mutual-fund-advisor">How to Become Mutual Fund Advisor?</a><br><a href="https://zfunds.in/m/arn-code">ARN Code - Purpose, Registration, Renewal, How to Apply Online</a><br><a href="https://zfunds.in/m/nism-va-certification">Nism VA Certification: Objective, Preparation Tips, Fees, Exam Certificate</a><br><a href="https://zfunds.in/m/mutual-fund-distributor-commission-structure">Mutual Fund Distributor Commission Structure</a><br><a href="https://zfunds.in/m/euin-number">EUIN Number: Purpose, Registration, Rules, Renewal Process</a></p>

Vividly defined the concept. Thanks a lot.

Debt funds are a vehicle to participate in some of the Debt instruments like Corporate Bonds, Certificate of Deposits (bank FD’s issued to Institutional Investors), Government Bonds, Debentures, etc. Debt funds pool in the money from various investors and invest in the debt securities

Debt Assest Class and Most common terms explained

what-are-debt-funds

Debt – The Undeciphered Asset Class

<h2>What is Debt? What are its features?</h2><p>Debt in simple words means ‘a sum of money that is owed or due’</p><p>Some of the common features of Debt are:</p><ul><li>Principal</li><li>Tenure</li><li>Interest (or some places also called coupon)</li><li>Credit Rating</li></ul><p>Let’s take some examples</p><p><strong>Example 1:</strong></p><p>Mr. Ram goes to his bank to make a Fixed Deposit. He makes the deposit of Rs. Ten Lacs for a period of 36 months at the interest rate of 8.00% p.a.</p><p>This means now his bank owes Mr. Ram a sum of Rs. 10 Lacs with interest, to be paid in 3 years.</p><p><strong>Example 2:</strong></p><p>Mrs. Kanta went and opened a PPF account in the nearest post office. The tenure is 15 years by default and a deposit of Rs. 1.5 Lacs was made. The government fixes the rate at 8.50% (changeable every year).</p><p>This means Government of India (through post office) now owes Mrs. Kanta the sum of Rs. 1.5 Lacs at the interest rate of 8.50% p.a.</p><p><strong>Example 3:</strong></p><p>Mr. Pramod bought a long-term bond of Edelweiss Financial Services. The investment was 10 Lacs and the tenure was 10 years. The coupon rate was 9.75%.</p><p>Edelweiss owes Mr. Pramod a sum of 10 Lacs at the end of 10 years and at an interest rate of 9.75% p.a.</p><h3>Let us now look at various type of Debt instruments:</h3><ul><li>Fixed Deposit</li><li>Public Provident Fund (PPF)</li><li>Bonds (issued by both Government and Companies)</li><li>Debt Mutual Funds</li><li>National Savings Certificate</li><li>Debentures</li></ul><h3>What are Debt Funds?</h3><p>The picture below shows the different kinds of Debt Mutual Funds available for investors.&nbsp;</p><figure class="image"><img src="\&quot;https://lh4.googleusercontent.com/sDYzCFaGZejjHOnPU-kKg5mMFrYLKsUlI0vLsh1AguIZslyleAaUMTTFAIJzYuPa1yO44xVMdCWgNgRYB3N_FHq1eDSodUU7lJVkIDuvR5y2-842TKPx1uUHCDYfzQup9UmxsiM\&quot;" alt="\&quot;32895_Tree-480px\&quot;"></figure><p>Debt funds are a vehicle to participate in some of the Debt instruments like Corporate Bonds, Certificate of Deposits (bank FD’s issued to Institutional Investors), Government Bonds, Debentures, etc.</p><p>Debt funds pool in the money from various investors and invest in the above-mentioned debt securities.</p><p>The key terms to be known while investing in Debt Mutual Funds:</p><p>What are the key terms used in Debt Mutual Funds?</p><h3>Key terms to be used in Debt mutual funds</h3><ol><li>Type of Debt Funds: there are debt funds for each investor need, right from parking money for a couple of days to creating a long-term strategic debt portfolio</li></ol><p>The classification as prescribed by the regulatory is as follows</p><p>What are the various types of Debt Funds?</p><p>&nbsp;</p><figure class="table"><table><tbody><tr><td>Category</td><td>Scheme Characteristics</td></tr><tr><td>Overnight Fund</td><td>Investment in overnight securities having maturity of 1 day</td></tr><tr><td>Liquid Fund</td><td>Investment in Debt and money market securities with maturity of up to 91 days only</td></tr><tr><td>Ultra-Short Duration Fund</td><td>Investment in Debt &amp; Money Market instruments such that the Macaulay duration of the portfolio is between 3 months – 6 months</td></tr><tr><td>Low Duration Fund</td><td>Investment in Debt &amp; Money Market instruments such that the Macaulay duration of the portfolio is between 6 months- 12 months</td></tr><tr><td>Money Market Fund</td><td>Investment in Money Market instruments having maturity upto 1 year</td></tr><tr><td>Short Duration Fund</td><td>Investment in Debt &amp; Money Market instruments such that the Macaulay duration of the portfolio is between 1 year – 3 years</td></tr><tr><td>Medium Duration Fund</td><td>Investment in Debt &amp; Money Market instruments such that the Macaulay duration of the portfolio is between 3 years – 4 years</td></tr><tr><td>Medium to Long Duration Fund</td><td>Investment in Debt &amp; Money Market instruments such that the Macaulay duration of the portfolio is between 4 – 7 years</td></tr><tr><td>Long Duration Fund</td><td>Investment in Debt &amp; Money Market Instruments such that the Macaulay duration of the portfolio is greater than 7 years</td></tr><tr><td>Dynamic Bond</td><td>Investment across duration</td></tr><tr><td>Corporate Bond Fund</td><td>Minimum investment in corporate bonds- 80% of total assets (only in highest rated instruments)</td></tr><tr><td>Credit Risk Fund</td><td>Minimum investment in corporate bonds- 65% of total assets (investment in below highest rated instruments)</td></tr><tr><td>Banking and PSU Fund</td><td>Minimum investment in Debt instruments of banks, Public Sector Undertakings, Public Financial Institutions- 80% of total assets</td></tr><tr><td>Gilt Fund</td><td>Minimum investment in Gsecs- 80% of total assets (across maturity)</td></tr><tr><td>Gilt Fund with 10 year constant duration</td><td>Minimum investment in G secs- 80% of total assets such that the Macaulay duration of the portfolio is equal to 10 years</td></tr><tr><td>Floater Fund</td><td>Minimum investment in floating rate instruments- 65% of total assets</td></tr></tbody></table></figure><ol><li>Yield to Maturity (YTM): YTM is the weighted average interest rate that a debt mutual scheme carries on its current portfolio</li><li>Average Maturity:&nbsp;This is the weighted average time period in which the securities held in the debt fund, will mature. This doesn’t mean the portfolio will end after that. It suggests the tenure of the portfolio and can be used to assess suitability (explained later in the article)</li><li>Expense Ratio:&nbsp;This is the per year cost that the fund will deduct (daily pro-rata basis) from the unit price</li></ol><h3>What are the risks involved in investing in Debt Funds?</h3><p>Now lets us look at the major risks associated with debt funds:</p><ol><li><strong>Interest Rate Risk</strong>: The bond prices are inversely proportionate to interest rates. Increase in Interest rates push the prices of the bonds downwards and decrease in interest rates can push the prices of bonds upwards. The maturity period of the bond also impacts the sensitivity of the bond towards any change in the interest rates. Longer the tenure, higher will be the sensitivity of the bond</li><li><strong>Credit risk (default risk):</strong>&nbsp;Debt funds invest in corporate bonds with various ratings from AAA+ to BBB+. The lower the rating, the higher will be the interest offered by the corporate. There are various rating agencies who use their own methodologies to rate various bonds. Ratings can also change with the period of time. Any rating upgrade is positive for the fund and any rating downgrade is negative for the fund.</li><li><strong>Reinvestment Risk:</strong>&nbsp;This is not much spoken about but is also an important aspect to take note of. Sometimes, due to market conditions the short-term rates go up and the funds to take advantage invest in those. The problem with the strategy is that the fund may not find appropriate securities after the portfolio matures and if the time horizon of the investor is long, he may not be best served in this case</li></ol><h3>Benefits of Debt funds</h3><ol><li>Debt funds allow you to participate in the debt market instruments, which otherwise require larger capital</li><li>Unlike the FD’s, you are not required to pay tax on accrual. You only need to pay taxes once you sell the Debt Fund</li><li>There is a lower tax on Debt funds, if held for 36 months or more</li><li>Debt fund allow you to diversify your debt allocation amongst large number of securities</li><li>Debt funds earn you pro-rata returns unlike an FD. For example, if you make a FD of 1 year and break it in 5 months, you will be given the 5-month rate (which could be lower) and some penalty too maybe applied. In a Debt fund, you can take the return up to date</li><li>Market returns can possibly be much higher than a fixed rate because there is usually a reward for the risk taken</li></ol><p>Experience of investors has been mixed and to make the experience better, investors should match the fund with their necessity and goal.</p><p>The above article may miss out some points but tries to highlight some of points which investors may find useful.</p>

Getting a 10% return on portfolio should be the first objective of every investor. Even if the rates move up back, there will be immediately negative impact on debt holdings and therefore managing more than 8-8.5% will be tough. 

Tough Road to 10% Returns

tough-road-to-10-returns

<p>Isn’t the topic itself so stupid? &nbsp;An advisor saying even a 10% return is tough to achieve.</p><p>Well, to attain a 10% compound growth rate it will take some beating and the reasons why I say that are:</p><ol><li>Proper investment planning is all about asset allocation based on risk behaviour. Not many clients are comfortable looking at negative returns on the overall portfolio</li><li>Equity cycles are becoming shorter as India in now closely knitted to the world markets and every event now impacts our markets</li><li>The return expected from Debt is&nbsp;also moving downwards from what it was a couple of years back. The interest rates are cooling off and the Govt is looking to lower its burden by bringing down the rates in small savings like <a href="https://zfunds.in/m/public-provident-fund-ppf">PPF</a>, NSC, etc. Expectations from debt have to be trimmed down to 7-7.5% at the max and that too comes with volatility</li><li>Real estate generally speaking is on a weak footing and will find it difficult to even beat the FD returns in years to come. However smart investors may still be able to find deals which can produce higher returns. The definition of ‘smart’ here will be based on exits and not entry into the investment</li><li>Clients also do not understand the fact that equity portfolios cannot be based on 1-2 years scenario. While one may be lucky to get returns in short periods, there is no guarantee of the same</li><li>Equity market returns are slaves of corporate earnings and for last 5 years we have seen lot of difference in forecasts and reality</li><li>Fundamentals tend to catch up with the markets sooner or later and exuberance and sentiments cannot sustain the markets for too long</li><li>There is more noise on ease of transaction and cost of advice rather than quality of advice and portfolio strategy, which I feel is detrimental to the investor experience and the portfolio returns as well.</li><li>India still doesn’t seem to be getting the kind of flows which were expected from FII’s and the main reason is the transparency in numbers. There has been a lot said about the new GDP numbers which are said to be false indicators and true GDP is much lessor</li><li>Retail participation in Equity markets remains a concern and therefore huge dependence on FII flows, which makes us very vulnerable to short term reactions across the globe.</li><li>There is still overhang from the returns of 2003-2008 which I feel is an era where the world order was much better and Indian economy on a good footing. Some errors made then are still hurting our economy</li><li>The index has delivered less than double digit returns in last 5-7 years and the calculation based on these returns suggest that with 7% on debt and 12-13% on equity, huge amount of risks will need to be taken to achieve any return higher than 10%, which traditionally Indians are not known for</li></ol><p>I am not trying to dissuade people from investing into equity. In fact I believe equity should remain the best asset class for the next decade. My only endeavour is to highlight the fact that since all monies cannot be invested in equity, getting a 10% portfolio return should be the first objective of every investor and then look further from there. On a 100% equity portfolio the standard deviation can be beyond the risk appetite of many</p><p>If you are being shown a rosy picture of 12-15% p.a., please check the volatility you can be exposed to and see if that is the situation you want to be in. Life in investments is all about Risk Adjusted returns</p><p>Happy Investing!</p><p><strong>More Information:</strong></p><p><a href="https://zfunds.in/m/national-pension-scheme-a-beginners-guide-for-rules-and-benefits">National Pension Scheme (NPS )- Tax Benefits, Eligibility, Features, How to Open, Application Form</a><br><a href="https://zfunds.in/m/sukanya-samriddhi-yojana-ssy">Sukanya Samriddhi Yojana (SSY) Scheme: Benefits, Eligibility, Interest Rate 2020, Application Form</a><br><a href="https://zfunds.in/m/how-to-invest-in-mutual-funds">How to Invest in Mutual Funds?</a><br><a href="https://zfunds.in/m/best-large-cap-mutual-funds">Best Large Cap Mutual Funds to Invest in India</a><br><a href="https://zfunds.in/m/best-small-cap-mutual-funds">Best Small Cap Mutual Funds to Invest in India</a><br><a href="https://zfunds.in/m/best-multi-cap-mutual-funds">Best Multi Cap Mutual Funds to Invest in India</a><br><a href="https://zfunds.in/m/best-elss-mutual-funds">Best ELSS Mutual Funds to Invest</a><br><a href="https://zfunds.in/m/become-mutual-fund-advisor">How to Become Mutual Fund Advisor?</a><br><a href="https://zfunds.in/m/mutual-fund-distributor-commission-structure">Mutual Fund Distributor Commission Structure</a></p>

Understand the risk, identify your portfolio needs and get an optimum portfolio made which can deliver superior portfolio performance. Don’t get carried away with high or low returns of any financial product in the recent times

9 Things Investors Must Do for Superior Portfolio Performance

9-things-investors-must-do-for-superior-portfolio-performance

<p>Portfolio Management requires a partnership between the Advisor and the Investor and while the role of the advisor can be discussed in detail, there is some discipline required from the investor as well. I am listing below few points that investors can adopt for a superior portfolio performance:&nbsp;</p><h2>1. Look at the bigger picture</h2><p>Most of the times we spend a lot of times debating about a scheme in the portfolio, which is not doing well or one which has given higher returns than the others. What we ignore is the ‘Portfolio returns’, which is the most important number to track. Of course, the schemes are important but that should be the job of the advisor, when and how to deal with the scheme.</p><h2>2. Understand the concept of risk adjusted returns</h2><p>&nbsp;The best-case scenario for everyone is highest risk with lowest return and therefore people end up with unpleasant experience with investing in the markets. The simple theory is that anything which can give you more than a Fixed Deposit will have risk. Understand the risk, identify your portfolio needs and get an optimum portfolio made which can deliver the returns with minimum risk.</p><h2>3. Avoid too frequent portfolio updates</h2><p>&nbsp;This habit of constantly watching the portfolio is almost impossible to break, but once done; it allows the breathing space to the portfolio, the advisor and the investor. A multi-year portfolio can easily be viewed once a quarter and reviewed once in six months, unless there are changes required.</p><h2>4. Don’t fall trap to guarantees or capital protection</h2><p>&nbsp;If anyone really needs capital protection then he should have all monies in Deposits. To search for guarantees itself suggest your risk profile is low, hence don’t try and experiment with your hard-earned money.</p><h2>5. Don’t compare yourself or your portfolio, you are different</h2><p>&nbsp;Every investor has a different behaviour towards market events, towards risk and towards life. Don’t compare yourself as you are unique. You will react differently to the same market situation and therefore your portfolio construct will be different, hence producing different results.</p><h2>6. Don’t base your decision on recent performance</h2><p>&nbsp;3-5 year is a reasonable time to measure any returns. Don’t get carried away with high or low returns of any financial product in the recent times.</p><h2>7. Write your Investment policy statement</h2><p>&nbsp;It really helps when you sit down with your advisor and pen down your objective for investing, your asset allocation, your expected returns and the worst and the best-case scenario is mentioned. Review this regularly and make changes if required.</p><h2>9. Keep the trust going</h2><p>&nbsp;If you do not trust your advisor the you should immediately stop dealing with him/her, but if you do, then allow him/her to implement the strategy and let if work over a considerable period. Share as much financial information as possible, so that an optimum solution can be tailored made.</p><p>Don’t take advice of people who have nothing to do with the outcome: This is self-explanatory.</p><p><strong>More Information:</strong></p><p><a href="https://zfunds.in/m/retirement-planning-with-mutual-funds">Retirement Planning with Mutual Funds</a></p><p><a href="https://zfunds.in/m/can-nris-invest-in-mutual-funds">Can NRIs Invest in Mutual Funds in India?</a></p><p><a href="https://zfunds.in/m/how-to-become-a-mutual-fund-advisor">How to become a Mutual Fund Advisor</a></p><p><a href="https://zfunds.in/m/stages-of-financial-freedom">4 Different Stages of Financial Freedom</a></p><p><a href="https://zfunds.in/m/tips-for-personal-finance">Tips for Personal Finance</a></p><p><a href="https://zfunds.in/m/best-mutual-funds-to-invest-for-long-term">Best Mutual Funds to Invest in for Long Term in India</a></p><p><a href="https://zfunds.in/m/how-to-invest-in-mutual-funds">How to Invest in Mutual Funds?</a></p>

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