January 4, 2018

Simple Rules

 Simple Rules of Investing

Rule No.1 : Never lose money

Rule No.2 : Never forget Rule No.1……..Warren Buffet

What is a game without rules? Rules make any game interesting.
Every aspect of life we experience rules. Whether we talk of office rules, traffic rules, army rules etc.

So than why not follow some rules while investing? Over the years we have observed that while investing generally no rules are applied and it thus becomes a random trail & error approach.

We follow below Simple Rules for destination financial freedom (Financial Nirvana)

  1. Income-Saving = Spending. First and basic rule, invest first and then spend not the reverse way.
  2. Create alternative/multiple sources of income. Never depend on one source of income. Make investments to create a second source.
  3. Contingency fund – A corpus enough for 6-8 months first has to be built & then invest for long term.
  4. You are never too late – The best time to invest is now. Earlier you invest it helps you in compounding your money.
  5. Risk is inevitable – In today’s times you cannot avoid risk, you need to manage risk.
  6. Invest systematically and regularly.
  7. Spread your corpus – As we need to have a well balanced diet to grow healthy, similarly we need to have well balanced investments to grow wealthy. In financial terms it is called an Asset Allocation.
  8. Build a tax efficient portfolio. Taxes eat into a major portion of your income.
  9. Liquidity is King – Never invest in Lock in products. Liquidity should be the first priority while investing.
  10. Never invest with a transactional approach, always invest with a vision. Transactions will never create wealth, it will create only excitement.
  11. Stay away from Emotions! Greed and Fear – Need to have realistic return expectations. Greed and fear often drive’s one to extremes.
  12. Never try and compare with others. Every individual is unique and has unique investment needs.
  13. Investing is less of investing right and more of behaving right.
  14. Invest in yourself. It gives the best returns.
  15. Most importantly Keep it Simple.

We feel the above rules would  help in giving a guideline or a direction, but to be a successful investor and to achieve financial freedom meticulous planning and a process has to be defined and followed in a very disciplined manner.

We will help you in designing a plan and the process as well.

You have all kinds of complex financial needs..! We have all kinds of Simple Solutions

  • Price is what you pay. Value is what you get.
  • We simply attempt to be fearful when others are greedy and to be greedy
    only when others are fearful.
  • Someone's sitting in the shade today because someone planted a tree a long
    time ago.
  • Risk comes from not knowing what you're doing.