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Financial Literacy

Steps In The Investment Planning Process

The investment planning steps are as follows:- 


  • Find when and how much you are saving

The first step in making your investment plan is to determine how much you can save after all your fixed expenses. Generally, 20% of income is considered a thumb rule, but you need to self-analyse. This will include creating an emergency fund that will help you like a secret weapon.


  • Set your financial goals

The next step is to have clear short-term and long-term financial goals. Once you understand your future needs, making a plan will be much more feasible.


  • Analyze your risk-taking ability

Making any investment plan first requires ticking a few boxes about the investor's risk-taking capacity. Various factors like Age, Income, Dependents, and area of work define how much risk you should take at a given point. Based on this, your investment tools can be decided.


  • Create a savings portfolio

Jotted down the above points. Now comes the need to create a balanced savings portfolio for yourself. According to budget, expenses and goals, create a portfolio that gives decent returns with minimal risk as per your profile


  • Learn about all investment options and Calculate your asset allocation

There are different investment options available for an individual investor, which can be differentiated based on - 


  • Time duration

  • The risk appetite of the investor

As per the data below, the following products are the most popular investment options in India - 

Use our platform Elearnmarkets to learn about various investment options like Equity, Debt, Mutual Funds and more. 



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Units 6/11