1 Year Challenge for Investment Plan and Set Annual Goal Effectively
If talking about indispensable things for investment, it is to set goals for investment portfolio, and also the questions, what are we intending to invest for? And how long will it take? Although the goals of each person are different but the mutual plan is proper planning and monitoring. On the new year occasion, we would like to invite everyone to do a challenge for investment plan in 1 year and see the result. The recommended steps are as follows:
Self-evaluation
Planning will be more efficient with investment reviews over the years and analyze about what is results of the previous plan? and which parts should be improved? But, if you have never invested, let start with the assessment of income and expenses, also clearly divide the money that you want to invest by considering the savings and expenditure plans in order not to affect the financial status and daily expenses.
Another part that should be assessed is the risk tolerance which has 2 main factors, first, the ability to take risk by considering the age range, income, environment and the second is investment expertise and the willingness to take risks based on attitudes, tastes, decisions, etc.
Set the goal
For short-term investment, it is suitable for the investment that focuses on safety, has low to moderate risk and has high liquidity. Therefore, create a careful investment portfolio by choosing to invest in money market fund or fixed income fund. In contrast, if the goals could be downgraded, for example, if you need to invest to buy something that the value might decrease in the case that the returns are less than expected, you should move to more risky investments and increase your investment in some stocks in mixed funds (bond and stock). More example, increase investment in stock funds in the right proportion for increasing more return but possibly limit the risk to a moderate level, etc.
If the investment in this section works well, you also could continue to plan towards medium-term and long-term goals. However, the risk should be diversified by clearly separating the investment proportion for reducing the impact of market fluctuation.
Plan for other investments
Besides planning to invest in finance, health and knowledge are also recommended to invest as well because it will be an additional factor that enhances quality investment from the readiness to make decisions.
Health - Keep physical and mental health in good condition that would be compared that you have quality assets with yourself. Also, it creates self-discipline which could be adapted for further investment.
Knowledge - Knowledge is the fundamental of investment and having regularly update information and knowledge in various fields would help you analyze events and make better predictions about your investment.
Investment conclusion
After implementing the investment plan, at the end of the year, you should take the assessment again for paving the way for plans in the coming years. When finished reviewing and summarizing everything, you might give a little reward to yourself such as upgrade new work equipment to increase convenience and further investment incentives.
However, do not forget that investment takes and short term or 1 year is an important cog in the overall investment. Principal is ready to help with quality investment products including innovation and practical investment tools that would help increasing investment opportunities to be successful.
Disclaimers: Investors should understand the product type (fund), conditions, returns, and risk before deciding to invest / Previous performance could not guarantee for future performance.
For more information:
Website: https://www.principal.th/en or Tel. 02-686-9595
For further other mutual fund information: https://www.principal.th/en/mutual-fundth
Reference
https://www.set.or.th/set/education/html.do?name=decode_begin_invest_1&…, https://www.wealthythai.com/web/contents/WT190600252, https://www.moneywecan.com/short-invest/, https://www.set.or.th/set/education/knowledgedetail.do?contentId=542&ty…
