What to do after I have set up my investment process.

 What to do after I have set up my investment process

A common question that I am often asked after one starts doing his customary as it is in STP into equity Mutual Funds is what do I do now?

Well !!! To start with, first accept my congratulations because you have done something which most of the country and even the world does not do.

As one moved from different type of political systems and economy  to the one of liberalization and privatization of high salaries and longer working hours, collecting millions - before one reached his 30s and getting that coveted house in the hills much much before the retirement. As We moved through all the above we forgot one thing that violent fires do not last long and heavy torrential rains come to abrupt stop and in the same way the highest salaries that we see in the beginning of a careers or towards the mid career and not forever.

The situation does not last long not because of many other reasons. But simply put, while running in that fast track race a person gets tired faster gets a lot of problems which add up to one’s adverse physical and mental condition much earlier. Hence  the very organisation which actually pushed you for all those mind-blowing achievements at a such a young age is further on the lookout of even younger blood all the time.

Hence right from day one when you enter the fast track career with higher compensations, it becomes imperative that you do not forget that's saving is important and putting that saving to work harder in form of investment is even more imperative.

It would not be an over statement if I say that you should have made your billion rupees much before your 40s.

…and now by the virtue of you having started on the road of investment in whatever small measure it may be… you need to understand a few things.

Firstly it should be remembered that what you have started investing in all probability is a small percentage of your salary and you need to step it up as soon as you have faith in the system and methodology of your investment.

Secondly you should remember to keep on the track without deviating much as different schemes which are both attractive and unbelievable comes along.

Just because you started 25000 SIP into equity mutual fund does not give you the right to start going for IPOs or NFOs or closed ended funds all get quick rich forest schemes, ulips, endowment plans money back plans of various insurance companies or some chit funds. Don't look at any of them just stick by your standard 7 golden rules and keep on your investment track.

Thirdly you have to remember that every year as your salary goes up by way of increment all the forex fluctuation you must try to divert the increased funds towards your Investments.

Fourth point, That I would like to stress is that somewhere in the middle do not start believing that real estate will give you a better return.this will not only take away and important portion of your savings but take it into an uncertain BLACKHOLE, out of which you will find it very difficult to come out as long as you invest and stay in India.

Fifth point that Comes along is most important of all and that is stop tracking the market everyday. Do not start subscribing to that pink newspaper start watching the CNBC channel everyday.

Just by investing a few lacs in mutual funds or direct stocks does not make you an expert on the Indian economy or give you the right to start discussing it at dinner parties. In fact it is definitely a good idea to start learning about your country in some small measure. Read newspapers to see how different projects are taking place across the countryand which companies are involved in it and what is the quantum of money being spent. You should try to read how different discoveries and inventions are coming up in the world and how they are expected to change your life.

The last. To be kept in mind is simply a extension of Fifth one and that is do not listen to the noise and cacophony that happens around you which tells that how the US economy is going down and further on the Indian economy will go down. Believe me at a lot of people … the leaders of the country, the governors of the central banks have lot more at stake than just a few lacs rupees and they will do something right to keep their own position intact even if not the economy at large.