How must you plan your Investing

You could be investing, keeping in mind the different goals that you have . Your goals could be Short,Medium or Long term in nature depending on the time you have in hand to finally reach your goal

But, no matter what kind of goals you may have , your investment must be spread across different investments type or very simplistically must be spread across at least Debt and Equity.

• Short Term Investment Horizon ( 1 year )

            Debt : Bank Fixed Deposits and FMP and Balanced Funds

            Equity : Large cap Focused Diversified Equity Funds

• Medium Term Investment Horizon ( 3-5 year )

           Debt : Bank FDs, Corporate FDs , Debt Mutual Fund

           Equity : Large Cap and Mid Cap Focused Diversified Equity Funds

• Long Term Investment Horizon ( > 5 year )

         Debt : Bank/Corporate  FDs,PPF/PF,Long Tenure Bonds

         Equity : Large Cap Focused Diversified Equity Funds ,

                     Mid/Small Cap Focused Diversified Equity Funds

                     Direct Exposure to Equity.

You can add Gold to all of these for stability .

As the saying goes, "Failing to Plan is Planning to Fail" , so lets be prudent and plan

Image: renjith krishnan / FreeDigitalPhotos.net