By: K Naresh Kumar | January 11,2015, 12.41 AM IST | THE HANS INDIA
Here goes the saying that many people look forward to the New Year for a new start on old habits. On each New Year, most people embark on a list of resolutions but by the end of the year, a very few manage to achieve the desired results. So, let us look at the 15 investing/saving ideas for the year 2015.
Prepare/revisit goals: Dream and draw up a plan to reach them. Like they say it all starts with the single small step, so break it down to a financial goal and seek ways to reach it.
Have a budget: This is something many people struggle at, including our Govt. To remain organized, identify and define your expenses as discretionary and non-discretionary, Create caps and ensure you stick to it. Use any of the available online organizers or budget planners to keep tabs.
Cut costs: Cutting costs doesn’t mean cutting back, one needn’t change the lifestyle to reduce expenses rather change how much your lifestyle costs. For instance, go for an online purchase and only after a comparison of an essential.
Ditch the savings account: Savings account can’t even match the current lower inflation. Once the budget’s in place, route the rest of the amounts to a liquid/liquid plus funds. The results will sure be pleasantly surprising.
Invest in Equity: India story is intact and the worst is behind. Add this asset class according to their risk appetite, though this year could witness quiet an amount of volatility. Stick to a SIP for better cost averaging.
Expose to Fixed Income: The possibility of interest rates going down is higher than ever this year. Lock-in on higher interest rates with better tax efficiency like the FMP, long term debt funds than a FD.
Bond with Bonds: Explore bonds including tax-free variant. The falling interest rates would appreciate the bond prices while one continues to enjoy the accruals (interest). Try to time the investment before the yields harden.
Exploit the taxation: Max out on the tax shielding instruments that could cut your tax liability. But please ensure these decisions are in line with ones goals.
Create a portfolio: Asset diversification is a must and create a portfolio that has the least possible correlation. This way one could reduce the risk and also end up positive in most market conditions.
Do charity: Be it Karma or otherwise, one gets what one gives. Spare a bit to charity and also claim tax benefits u/s 80(G)
Play hard ball: The businesses are slowly looking up, so bargain for its true worth.
Go for a Gold cover: With so much uncertainty and strife in the world economies, gold could add a bit of sheen, at least from last year’s perspective but limit to less than 10% of the portfolio.
Dabble with Oil: Try playing in commodities this year and Oil, though going through a bloodbath might rise up as all the falling is only to build up.
Dump the DIY in investing: Take help of an expert for advice and execution. Make sure he acts as a guide and understands your needs and requirement.
Leap of faith: There is an information overflow across media now-a-days. Make a habit to acknowledge ones instinct aka gut while making important decisions. No amount of fundamental, technical and exogenous cues could replace. Pick all or some of these ideas to realize your dreams.