Investment Strategy - An illustration

Investing can be daunting even for seasoned Finance professionals as there is no one-size-fits-all strategy.  The returns will mostly depend on the risk appetite of the investor and  the market conditions therein. Each investment strategy need to be customised for the needs and goals of the investor to maximise the returns. That's why engaging a Wealth Manager or Investment Consultant is important as they posses specialised knowledge to cater to such unique needs of the investors.

As for as investment and returns are concerned, the age-old saying Let savings be your first expense is not understated. Any investment brings maximum returns, the more it stays invested.  So, it is always a smart decision to plan saving early in your life. That said, no time is too late for bringing good returns if we know how to invest.

Let us consider two investing scenarios - Mr. X and Mr. Y.

Mr. X is past his middle age, has saved about Rs. 1 crore through his career which he is looking to invest in short or medium term and get good returns. Mr. Y is a young professional who has a stable income and can invest Rs. 1 lakh per month. Both have two similar goals to fulfill i.e. Retirement and Child Marriage.  The below example shows how their strategies and returns differ based on their investment capacity despite having common goals.

Please note that the below is provided for illustration purpose only.  This is not an investment advice. There is no guarantee that this strategy will work or bring the stated returns. The actual amount of returns will depend on the current market conditions and the products invested in.  Please reach out to us for a customised investment strategy that fits your goals and investment potential.