The new financial year 2020–21 has started from 1st April. As in the month of January, at the start of the new year, we do a resolution to take up a new challenge, new tasks or change our old habits. Same when new financial year start we start thinking of our financials, its current status and changes required to achieve our targets.

April month is the best time to review our investment portfolio and start investing or restructuring according to the market trends. Many investors follow the DIY (Do it yourself) approach for their investment. Many times they get carried away with the running market flow. But remember investment should always be linked to your life goal's but it is being observed most of the times investment is not done in accordance with our goals.

Let’s commit to ourselves to make FY 2020-21 more rewarding by practising the following 3 behaviours

• Set clear return expectations from the asset classes where you have invested:
  Before investing in any asset class, have clear & reasonable expectation about the rate of return
  For eg. it is always advisable to expect CAGR from Equity Mutual Fund in a range of 10% to 12% in the long term for SIP you can expect 12 to 14% for lump sum investments from Debt it is 6% from taxable debt financial products and 7 to 8% from tax free debt financial products
  Quick tip: 7% CAGR means doubling your money in 10+ yrs & 12% CAGR means doubling your money every 6 yrs. So if you can consistently earn avg 12 to 14% CAGR you are amongst the top 5% Indians who are earning this kind of return on investments
• Focus on Risk-adjusted Return While Investing,

don’t focus only on Return. Focus on things which are in your hand:

• saving more,
• spending less,
• investing wisely with discipline and focus

rather than maximizing return where you do not have control. Return comes from the Risk. Don’t ignore the Risk associated with Return. Manage and try to minimize the risk and focus on Risk-adjusted return. Don’t forget that Risk & Return are two sides of the same coin.

3 Always believe consistency and discipline pays off in the long term

Did you have any new year resolution for your health and your relationships at the beginning of 2020? Are you still following it 3 months down the line? If yes, Kudos to you. When you have such dedication and zeal for other kinds of stuff of life you can have the same discipline and perseverance for your Finances and money matter.
Follow your new-year resolution until the end of the year. If not following, start Investing in yourself and take time out to follow your resolutions as Health, Wealth and Relations are PRIME important factors.

2020: 5 important tasks for investors in this new financial year.

Where to invest your hard-earned money in 2020? Is the basic question every investor has in his/her mind after experiencing market volatility in recent time due to Corona pandemic. But long term investment does not depend on short term market volatility. An investor should focus on long term wealth creation. In DIY s approach while constructing your portfolio one should focus on life goals, risk profiling, investment horizon, and tax implication and then select the suitable financial product. So to summarize, remember the following points before investing in this financial year.

1. Be financial literate, do your risk profiling and study the financial product before investing.
2. Focus on goal-based investment.
3. Don’t blindly follow market trends. Before buying any product check whether it is suitable for your investment strategy.
4. Stick to your asset allocation
5. It is always advisable to consult a Financial Advisor before investing.

The investment process is a marathon, not a sprint. An investor should always focus on long term wealth creation. The investor should learn from his/her mistakes and try to rectify it in the coming years. Glorious future is always waiting for us.

This Financial year is going to be very different from the previous years. A lot of market fluctuation, gloomy economic conditions, negative sentiments if corona pandemic is not under control and global rescission. So overall stressful roller coaster ride.

But if you focus on your goals, follow the basics of Financial Planning and keep on going with positivity this financial year can be turned to be a MULTIBAGGER in coming years.

Wish you have a Healthy, Wealthy and Peaceful new Financial Year 2020–21.