Planning for the investment journey without a clear financial plan may be a journey without a clear destination in mind. It is often said, “if you don’t have a destination, any road will take you there.” However, if one has a clear goal in mind, it can help chalk out the right investment strategy. 

One can classify such financial aspirations into short-term goals and long-term goals. Such classification can help to define the required amount and setting the right assumptions to meet the financial goals and the investment horizon to meet such goals. 

Such inputs are essential to select the suitable investment options best suiting the investors’ risk appetite and financial goals.  

The world of investments is filled with a complex web of investment options. When one has just stepped into the investment journey, one must keep the investing strategy simple with easy-to-understand investment products. 

Mutual funds make it easier for investors to invest the savings across different asset classes in a wide range of mutual fund schemes. Further, one can also register a Systematic Investment Plan (SIP) to automate regular and consistent investing.

Once the SIP registered, the investment amount is deducted automatically from the bank account and invested in the specified mutual fund scheme on pre-defined dates.

If one cares to review different investment options, it is evident that one intends to begin the investing journey early. However, having a plan is different from actually executing the plan into action. Millennial investors often tend to procrastinate into investment decisions to make the most of the present times instead of planning for the future. 

However, one should always resist the temptation to defer the investment plans and take the first step at an early stage. Starting to invest early enhances the overall investment period to accumulate savings towards retirement planning. Further, the investor can benefit from the power of compounding, which helps in the exponential growth of the investment portfolio in the later years of investing. 

It is always advisable to stay reasonable with the return expectations from the investments. It is always beneficial during the early days of investing if the investment experience is pleasant, encouraging the rookies to continue investing. 

Further, one must expect the returns only in sync with the long-term performance of the markets and not shadowed by the outperformance during the recent periods. Mutual funds provide market-linked returns to the investors, wherein the returns are not guaranteed and dependent on the future performance of the underlying investment portfolio.

Clouded with a wide range of investment products, one should not hesitate to seek useful financial advice to choose the right investment option. Even while mutual funds are advisable for rookie investors, they still need to choose between different mutual fund schemes. Different mutual fund schemes may be suitable for different goals. 

For example, equity schemes may be suitable for long-term goals, while debt funds may be suitable for stability within the investment portfolio. Since independent financial advisors are professionals in the investing world, one can consider them their friend, philosopher, and guide in the investment journey towards financial goals and seek advice regarding the mutual fund scheme best suiting the investors’ financial plans. 

The investors can also utilise their advisory experience to review the investment portfolio periodically. This helps them keep the investment portfolio in good health by replacing the underperforming schemes with better performing schemes.