India has saving rate as high as 30% in comparison to the US and UK of avg 17%: Source – World Bank. But majority of our investment options are Fixed Deposits, Gold. Further the most common mistake we Indians fall prey to is considering insurance option as an investment more than protection & security.
Asset allocation spectrum in Indian scenario is limited keeping in mind few things.
For example, we save keeping in mind our child’s future educational needs and their marriage expenditure.
The inflationary rate of developing nation as ours is quite higher. We need to keep this in mind while we plan our investment. For example, today the educational course you aspire your child to study in future is costing 10 lakhs. Higher inflationary trends would make education costs, marriage expenditure expensive in future. Here, financial planning is a concrete step to ensure that your return on investment then is considered keeping in mind the inflation projections.
Financial goals can be attained through effective financial planning which takes care of aspects: future financial goals, current position, risk ability.
Asset allocation is the most important step towards financial planning.
Prior to attaining this step of asset allocation, it’s the duty of every financial advisor to make the investor financial literate. The common and startling myths we come across in Indian investors are as follows:
Financial literacy will help build our nation. 90% of the population barely knows what returns, protection and security their investments, insurance are deriving.
Individual financial advisors, trainers & financial institutions play a vital role in this process. Let us aim towards a “Financially Literate India”.
To know more email us at empower@alpashah.in