Welcome to the world of finance
Thanks for choosing Sunflower Broking to start your investment journey. If you’re new to investing or want to upgrade your knowledge about it, then you must go through this section. We have provided here information and guides to help you make your own investment decisions.
Read before investing:
Before you start investing, we would like to update you that Investment in stock market and mutual funds are subject to market risks, the value of investments can fall as well as rise, so you could get back less than you invested. You can contact our experts for getting knowledge and understanding of investment in stock market.
Before you start investing, ask yourself these basic questions:
Reasons for Investing:
Write down on a piece of paper following to help you take decision on why and where you want to invest;
- Current financial position
- Regular uninterrupted income / inflow
- Regular cash outflow
- Goals, like
- Education (personal/kids/spouse)
- Marriage (self/Kids)
- Car and other luxuries
Time Frame :
You should plan your investment as a medium- to long-term commitment. We guide you to keep your plan minimum for 5 years and best if you have more than 5 years plan. If you are not ready to commit your money for at least five years, all investment options may not be right for you.
Why are we talking about 5 years? It gives you longer period to invest, gradually month by month and grab opportunities of fluctuating investment markets and in a typical economic cycle, five years are enough time to recover from negative trends to bullish trend. Of course, this isn’t always applicable – but it has been witnessed past. You may still get back less than you initially invested after this time, if you have chosen incorrect instrument/investment options
Risk vs Reward
You should always design your portfolio according to your risk appetite. Here we will try to give you brief idea on risk vs reward attached to different type of investment options.
|Instruments||Rate of Returns (estimated)||Risk|
|Bank Deposits||8 to 9%||Almost nil|
|Company deposits||10 to 12%||Subject to company viability|
|Post office savings||8 to 8.50%||Secured and also has tax benefits|
|Mutual Funds||Depends on market||Risk involved|
|Stock Market / Equity||Fluctuation, our experience is that it gives average of 12 t0 18% of annualised return||Subject to market risks|
Always take an expert advice to plan your taxation on income, a proper plan will give you benefit of direct savings of current income and good returns on investments made for tax benefits.
Read our section Fiancial Planning for more details.
Personal Risk cover:
We always ask our clients to cover themselves with Term Plans of any good insurance company and health insurance of entire family. This will cover you form unexpected cash outflow an also give tax benefits which will save on your current income, which you can invest in other savings instruments.
Lastly, If you are unsure about which investment is right for you, please seek independent advice from certified experts or send us your query by clicking here
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