Close
Close

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term

Protect Your family’s financial future with Kotak e-Term. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and insurance in one premium. Know more

Kotak e-Invest

Insurance and investment in one plan with Kotak e-Invest. Know more

Kotak Lifetime Income Plan

Retirement years are the golden years of life. Know more

Close

Get a Call

Enter your contact details below and we will get in touch with you at the earliest.

  • Select your Query

Thank you

Our representative will get in touch with you at the earliest.

A Step-by-Step Guide: How To Make An Investment Plan?

Designing the best investment plan takes more than just opening a savings account. Here is a step -by-step investment planning guide that can aid you in making the most of your money.

  • Feb 15, 2022
  • 2,341 Views

Designing the best investment plan takes more than just opening a savings account, purchasing a few stocks, or investing commonly sought-after financial instruments like mutual funds. To create a suitable investment plan, it’s critical to understand where you are now, what your current financial condition is, what your future ambitions are, and what you want to achieve with your investments. To determine your best asset allocation, you must specify your needs and how much risk you’re ready to take. Of course, it is extremely prudent to plan ahead of time before investing your hard-earned money. Though it is best to start early, you may still establish and implement a personal investment strategy and begin building a future nest egg if you are in your late 40s or 50s.

Regardless of the phase of life you are enjoying, this well-formulated, step-by-step investment planning guide can aid you in making the most of your money.

Step 1: Examine your current financial circumstances.

At first, figure out where you are financially right now. You must understand the amount you need to invest. One way to achieve this is by making a budget to examine your disposable income after expenses and emergency reserves. It’s also crucial to examine how liquid or accessible your investments must be. For instance, if you need to cash out instantly, you should consider liquid assets, such as stocks, instead of real estate.

A complete, step-by-step guide on making a long-lasting investment plan

Step 2: Define your financial objectives

The next stage is to establish your financial goals. Why do you need this investment? What do you aim to achieve with it? The answer can range from purchasing a car in a few years to retiring comfortably in a few years. Your objectives can be categorized into safety, income, and growth. When you want to maintain your present level of wealth, income is what you want from your assets, and growth is what you want from your investments if you want to develop wealth over time. Based on which categories your goals fit into, you may decide the ideal investing strategy for you.

Step 3: Determine your risk tolerance.

The next step is determining how much risk you are ready to accept. Because your portfolio has time to recover from any losses, the younger you are, the more risk you may take. Since riskier investments offer the potential for huge gains and significant losses if you intend to create money over time, opt for a safer option.

Step 4: Decide on where you want to invest.

The list of investment plans in India is endless. Your budget, goals, and risk tolerance play a role in determining the best investment plan with high returns. Ensure to diversify your portfolio regardless of the plan you decide to invest in. This is because you don’t want to invest all of your money in stocks and risk losing it all if, for example, the stock market crashes. To maximize your growth and stability, allocate your funds to a few different investment kinds that align with your goals and risk tolerance.

It may be necessary to seek a financial counsellor’s advice once you reach this point in the procedure. Based on your existing financial status and goals, an advisor can assist you in determining the best methods to invest your money.

Step 5: Keep an eye on your investments and rebalance them if necessary.

It’s not good to leave your investments alone once you’ve made them. Instead, you should check in on your investments now and again to see how they’re doing and whether you need to adjust. Once you’ve determined that your investment strategy is sound, you should consider rebalancing your portfolio. This entails restoring your portfolio’s asset allocation to its original state. For example, consider when your stock investments outperformed the rest of your portfolio. To maintain your optimal asset allocation, it may be necessary to sell some of your stocks and shift the proceeds to other investment kinds.

If this is your first time formulating the best investment plan, don’t worry about gaining experience; instead, concentrate on learning about the various investments. You should also think about all possible investment plans with which you could put your money to the best use. Then, understand your needs and invest in a plan that best suits your plans and financial goals.

In this policy, the investment risk in the investment portfolio is borne by the policyholder.

Kotak e-Invest

Download Brochure

Features

  • Return of Mortality Charges*$
  • Enhanced Protection
  • Multiple Plan Options
  • Zero Premium Allocation Charges
  • Tax Savings^

Ref. No. KLI/22-23/E-BB/521

T&C

- A Consumer Education Initiative series by Kotak Life

Similar Articles

What are the Maturity Benefits in a ULIP Plan: Fund Value Sum Assured or Only Fund Value?

4 Benefits of ULIP Fund-Switching Feature

How to Plan your Investment to Achieve Periodic Financial Goals?

Early Investing and the Power of Compounding

Why Are ULIPs Called Flexible Investments?

Do You Know the Difference Between Savings and Investment?

लॉयल्टी एडिशन क्या हैं, और वह यूलिप में कैसे काम करते हैं?

Learn About Safe Investments with High Returns in India

How is the Compound Annual Growth Rate (CAGR) Calculated in ULIP?

Why Should You Consider Guaranteed Savings Plan for Long-Term Investment?

How to Use Recurring Investment Strategies to Build Wealth?

What are the Best Short-Term Investment Plans with High Returns?

Why are ULIPs One of the Best Tax Saving Instruments?

8 Charges in ULIP That You Must Know

Best Investment Options in India in 2022

Important Questions You Must Ask Yourself When Buying a ULIP Plan

How to Cancel ULIP Policy?

ULIPs: Suitable for all

Long Term Savings Plan - Best Savings Investment Plans in India

What is Compound Interest, And How Do I Calculate it?

Receiving regular payouts at various stages of life

Everything You Must Know About ULIP Riders

Things to Know Before Buying an Endowment Plan

How To Track ULIP Performance?

Why is Portfolio Diversification Important? How to Diversify Your Portfolio?

Why Do You Need A ULIP Plan - All You Need To Know

What are Some of the Safest Investment Options in India?

Which is a Better Investment - Mutual Funds Or ULIP?

What are the Advantages and Disadvantages of ULIP?

How Much Wealth Can You Create from ULIP in 10 years?

Why Should I Invest in ULIP?

How to Make Your Financial Portfolio?

What are loyalty additions, and how do they work in a ULIP?

How to Calculate Your ULIP Returns?

Factors Affecting Stock Markets

What are the Best Investment Options For Females?

Which is Better – FD, Mutual Fund, SIP, or ULIP?

Best One-Time Investment Plans in India

Asset Allocations in ULIP - Know the Top Benefits

ULIP Plan as a Gift

Successful Financial Planning for Urban Women

What is a Credit Score and How Can Insurance Help You Improve it?

Endowment Plan vs Fixed Deposit?

Is the ULIP Policy Surrender Value Taxable?

Importance of Portfolio Management

Are Money Back Policies Helpful? A Complete Guide

ULIP Benefits You Can Avail from Early Investing

What are the Best Investment Options for Students in India?

How Is ULIP Different from Other Life Insurance Plans? Where Can I Invest - ELSS, ULIP, or PPF?

What is ULIP Plan, and How Does it Work?

ULIPs Investment – A Boon or Bane?

ULIP vs FD - Which is Better and Why?

What is Fund Switch in ULIP? And ULIP Fund Switching Techniques

Top 5 Investment Options in 2022 for Healthy Returns

Difference Between Passive and Active Investing

How to Manage Your Portfolio Like a Professional?

Short Term and Long Term ULIP Plans for Wealth Creation

Why Should You Invest in Term Insurance And ULIP?

Best Guaranteed Returns Investment Options to Meet your Financial Goals

Here's Why it's a Good Time to Explore ULIPs as an Investment

Investments Options to Buy a house in India

Four Financial Lessons from The Vedas on Living Life to The Fullest

Can ULIP Policy be Transferred?

ULIP NAV Meaning & How is the Return Calculated in ULIP

Customising investments to manage your wealth

यूलिप के फायदे और नुकसान क्या हैं?

Unit-Linked Life Insurance (ULIPs) vs. Term Insurance

What is Direct Investment and its Types?

How to Start Saving Money in 10 Simple Ways?

Creating a second source of income with life insurance

ULIP Investment Strategy: Top Tips to Improve Your ULIP Gains

उच्च रिटर्न प्राप्त करने के लिए सर्वश्रेष्ठ इन्वेस्टमेंट विकल्प

Benefits of ULIP as a Child Insurance Plan

यूलिप के फायदे (Benefits of ULIP in Hindi)

Got a Salary Hike? Here’s How to Plan your investment further

Savings Plan for Grandchildren

Rate of Interest on Different Investment Plans in India

यूलिप प्लान में परिपक्वता लाभ क्या हैं: फंड वैल्यू सम एश्योर्ड या ओनली फंड वैल्यू?

The Importance of Starting Early: Securing Your Child's Future with a Child Education Plan

Beginner's Guide to Wealth Creation: Meaning, Strategies, & Importance

How to Plan Your Child's Education - A Step-by-Step Guide

How to Increase Net Worth Along with Family Protection

Different Types of Endowment Plans

Can ULIP Help in Achieving Short-Term Financial Goals?

How Do One-Time Investment Plans Work?

How Can a Legal Nominee Claim ULIP Benefits are the Policyholder’s Death?

How to Fulfil Your Financial Goals in the Next 10 Years?

What are Tax-Deferred Savings Plans?

What's Better for Your Child's Education? Child Plans or Mutual Funds?

Debt ULIPs vs. Debt Mutual Funds: What's the Difference?

Which are the Best Investment Plans for Indian Senior Citizens in 2022?

Does Rupee Cost Averaging Work In Unit-Linked Insurance Plans?

ULIP as an Investment for Your Child

How To Diversify Portfolio In 2023?

What is a Savings Plan and What are is Benefits?

How to Choose the Best ULIP Plans to Invest in 2022?

Learn About Safe Investments with High Returns in India

Are Investment Returns Guaranteed in a ULIP?

What is ULIP Renewal?

What is ULIP and Its Benefits?

Building wealth through regular investing

8 Important Tips to Maximize Gains with ULIP Investments

Why Should You Build an Emergency Fund?

Are Gains from ULIP Sale Taxable?

Planning Financial Goals and Objectives of Financial Planning

How to Manage Inheritance Money?

What are the Best Investment Options for Young Adults?

Planning for Your Child's Higher Education? Explore These Investment Options

Difference Between Guaranteed Savings Plan and ULIP

Which are the Best ULIP Plans in India for Children?

What is a Child Money Back Plan, and How Does it Work?

वित्तीय संपत्तियां और उनके प्रकार

Best Investment Plans for Children - Secure Your Child's Future

The lesser-known facts about ULIP policy that customers should be aware of?

What Is Financial Planning?

What is the Importance of Saving Money?

How to Plan Savings from Salary?

What is NAV in ULIP, and How is it calculated?

What is SIP Calculator, And How Does it Work?

Top 10 Investment Strategies to Create Wealth

Safe Investment Options with High Returns for FY 2018-19

Why Should Parents Invest in Endowment Plan?

What are the Best Investment Options for Beginners or Amateur Investors in India?

Best Investment Options to Cover Your Child's Education

Is This The Right Time To Invest In ULIP? Why or Why Not?

ULIP Capital Gain Tax: Check Tax Norms for Capital Gain on ULIPs

What is the Time Value of Money (TVM)?

Investment Options for NRIs in India

How Does an Endowment Plan Work?

What are Mutual Funds?

What is Equity Mutual Funds: Meaning, Types & Benefits

How Can ELSS Funds Help You Save Tax & Create Wealth?

Why ULIP is Better Investment for Long-Term Wealth Creation?

What are Index Funds and How Do They Work

Corporate Bonds: Meaning, Types & Benefits

Top 10 Investment Plans Available in India

How To Invest Money In ULIP?

उच्च रिटर्न प्राप्त करने के लिए सर्वश्रेष्ठ इन्वेस्टमेंट विकल्प

What is Money Management? Definition & Example

Top 5 Principles That Need to be Followed for Wealth Creation

6 Important Tips to Maximize Your Gains with ULIP Investments

Difference Between ULIP and Endowment Plan?

What are Financial Assets & their types?