Locking up your funds is never a good idea. It is because the purchasing power of your money declines over time. Even if you are setting aside funds for use during emergencies, invest them in a safe investment with high return in India. It will help multiply the money and will yield inflation-beating returns.
A 3-year timeline is the most looked at to measure the long-term returns. While the recommended period for measuring actual returns is usually 5 years, people decide their investments based on a 3-year return history.
Also, it is easier to plan for a 3-year horizon and try to find best investment plan with higher returns. Whether it is your child’s education or plan to renovate your house, a 3-year horizon seems more plausible than a longer one.
Benefits of 3 years Investment Plans
Making sound investments can help you grow your savings quickly. Here is a look at some of the best benefits of having robust investment plan for 3 years.
- Get a better understanding of what your net financial net worth is, and how you can improve it further
- Manage your income effectively by diverting it at the suitable sources
- Prioritising your expenses and checking your assets while discarding your liabilities
- Fund your requirements and evade debts
- Increased preparedness for emergencies and unforeseen circumstances
- Increased self-dependency as your financial goals are well aligned with your personal goals
An ideal financial blueprint is one that not only defines goals but also gives you means of achieving them. It even takes into consideration your circumstances, as well as your risk appetite.
An investment plan should break your financial aspirations and necessities into time-bound goals. Your investment allocation should be done so that as and when you are close to your financial goal, the money is available through one of your investments.
