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Blog    >   Invest in a financial plan; not an investment product

Many a times, an agent selling an investment product visits a customer and explains the good feature of the product. If the customer likes the product, he invests into it. This is not a good idea.

Rather than investing money in an investment product on an adhoc basis, an investor should focus on achieving his financial goal. He should set his goals first and then evaluate the product. If the said product will help him in achieving any of his financial goals, then only he should invest in it.

Let’s suppose you need money for your child’s higher education and marriage after 12 and 18 years respectively. You come across a new insurance plan with good features having a maturity of 15 years. You like the plan and invest in it. After few months, you again come across another insurance plan with a maturity of 20 years. You like the plan and invest in it.

Now consider this. You require funds after 12 and 18 years respectively but you have invested in products with maturity of 15 and 20 years respectively. As a result, even though the product might have been good it will not help you in achieving your financial goal.

So, identify your financial goals and invest in only those products which will help you achieve your goals.

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