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Plan your investments

There's a lot to think about before you invest. If you have a plan to follow, you'll know better what to do with your money and are more likely to be a successful investor.

 

Three basic steps to successful investing:
1.Set your financial goals and savings available for these goals
2.Understand risk-return and find out what kind of investor you are
3.Choose specific investments & Keep track of your investments

 

Set your financial goals and savings available for these goals
Financial planning is an important exercise, but people often miss the opportunity to become financially independent because they avoid thinking about their financial goals and dedicating time towards investing for these goals.

To help potential investors, JSIL has prepared the following table which potential investors may use to help determine your financial goals.

 

Purpose of Investing Amount available today Amount Required When these funds are required
General      
Protection from Inflation      
Tax savings      
Wealth accumulation      
Retirement      
Holiday      
Children Related      
Education      
School      
College      
Wedding      
Personal Assets      
House      
Car      
Other Goals      

 

Understand risk-return and find out what kind of investor you are
Different investments avenues offer different potentials for return. It is important to understand the level of risk involved with your investments. Successful investors base their performance expectations on historic average returns, and keep short-term market movements in perspective.

  • Investment opportunities with high return potential usually also have high risk
  • Risk is generally mitigated as tenor of investment increases
  • Please keep in mind that past performance is not indicative of future results

 

 

 

Not sure what kind of investor you are? Contact JSIL Investor Relations to arrange an Investor Suitability assessment. The JSIL Investor Suitability framework is a questionnaire to help determine the appropriateness and suitability of your overall investment. It takes into consideration your individual investment objectives and constraints.

 

Choose specific investments & Keep track of your investments
When you buy different investments, you start to build an investment portfolio. Studies show that having a mix of different investments in your portfolio is important to investing success. Through asset allocation, you can spread your money across different classes of investments, each of these should form an important part of your investment portfolio.

 

Asset Categories Examples Liquidity and Risk / return summary
Cash and Cash equivalents Savings accounts and other bank deposits
  • Like having cash in your wallet, readily accessible, make it easy to get your money when you need it.
  • Provide lower return and may not keep pace with inflation, but with almost no risk.
Commodities Gold, silver, cotton
  • Often not very liquid
  • Provide the potential for real returns (that is returns in excess of inflation) but with price volatility on a daily basis
Property Undeveloped land, house
  • High capital requirement to invest
  • Not liquid & not regulated
  • Provide the potential for real returns (that is returns in excess of inflation) but with price volatility on a daily basis
Fixed Income Investments Fixed Income Instruments, fixed income Mutual funds
  • Not generally liquid, however Fixed Income Mutual Funds provide daily liquidity
  • Offer a fixed rate of return
  • Provide the potential to keep pace with inflation
  • Low risk
Equity Investments Stocks, Equity Mutual Funds
  • Daily liquidity
  • Are often riskier than fixed income investments. Their future value is uncertain, and will be affected by market factors and economic trends
  • Often offer the potential to make far more than either a fixed income investment or cash equivalent.

 

To build your investment portfolio, choose the right mix of these asset classes to get the right balance of liquidity, risk and return for you.

 

Remember: Successful investing starts with clear goals and good information Make sure you understand the investments you are thinking about. Make investment choices that help you reach your goals.
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