5 important investment lessons from 2021

WE WISH ALL OUR SUBSCRIBERS AND READERS A VERY HAPPY, HEALTHY AND PROSPEROUS NEW YEAR 2022. LOOKING FORWARD TO STRENGTHENING OUR RELATIONSHIP WITH ALL OF YOU THIS YEAR.

As we step into another New Year, again in the shadow of the looming pandemic, let’s see if we can pick up some important lessons from the year gone by. So that we can apply our learnings to make a sound investment plan for the coming year ahead. The idea is to ensure financial stability and stress-free money management even if the times of economic uncertainty continues this year.

1.Always be prepared for emergencies. We can’t stress on this point often enough. The importance of planning for unforeseen difficulties, loss of income, health emergencies, monetary shortfall – this is the biggest lesson that the pandemic has taught us. Whether it is getting adequate life/health insurance, or keeping aside emergency funds in some easily accessible instrument, everybody has to work out their own contingency plans. And these plans vary depending on how many financial dependents are there in your household.

2.Diversify your financial portfolio. Before the pandemic struck about 2 years back, the property rental market was booming, especially in metro cities. So a lot of people put all their surplus funds into property purchase. But the mass exodus of the working population from cities has seen a sharp fall in property rentals. Another case in point is the sudden flurry towards equity markets. Since the deposit interest rates were falling continuously, there was a sudden jump towards the stock markets by small investors, especially towards IPOs. But except a handful of them, most of them are under-performing, though the market itself is quite buoyant. Property, gold, shares, mutual funds, FDs, government saving schemes – these are all good, sound investment options. But when an individual relies too much on only 1-2 of these options, the risk of failure is very high. So balance out your portfolio. And remember to include Chit funds as one of the investment alternatives in your portfolio. They are actually an instrument of regular monthly savings with the added advantage that the depositor can withdraw their entire investment at the time of their need, any time during the investment tenure. No penalties, no hassles. Choose a registered Chit fund house that has a long standing reputation and you can expect to gain about 7-9% returns on your investment with absolutely no risk.

3.Financial plans must be dynamically adjusted to the circumstances. There is no such thing as a life-long plan, when it comes to managing your finances. We may make some short and long term investment plans, but we must also keep revisiting these plans periodically. You must compare the actual performance of your financial investments as against your original estimates, at least once a year, preferably every quarter. Life’s uncertainties are bound to impact even the best made plans. So be flexible, be vigilant.

4.Don’t fall for hype, rely only on performance and credibility. There are several new money making avenues out there such as cryptocurrency, online gaming, fintech companies offering wealth management options. But very few of these companies have a proven reputation and credibility to guarantee your investment.

5.India is emerging as an economic success story. That’s good news. Whether it is the way we have handled the pandemic, or our stock market boom, or the growing digital infrastructure in the country, there are a lot of positive signs visible all around us. India is fast moving towards becoming the 3rd largest economy in the world, next only to China and the US. Our vast youth population, skills development and innovation ecosystem are enabling a lot of wealth creation and prosperity. So we citizens have a lot of reason to bet on India, as compared to the rest of the world. It makes sound economic sense to keep our funds within our country, and look for innovative business ideas within India.

Shanthala Chits has been in the business of chit funds for over 2 decades now. We are a Government approved chit fund company with a 25 year successful track record and thousands of satisfied customers. Shanthala Chits is registered under the Chit Fund Act of 1982, Government of Karnataka. We are one of the most popular chit fund houses based out of Bengaluru, known for our customer satisfaction and secure investments.

Our Chit schemes range from a monthly contribution of Rs 6000 to Rs 1,00,000 to suit every budget. You can pick a chit scheme with an appropriate monthly installment for meeting several of your short-term financial needs. Our chit schemes are for a tenure of 25 Months.

Get in touch with us and start with an investment scheme. We will be glad to help you out with the right scheme that matches your needs.