Literacy as per dictionary means,’ the ability to read and write’. But in reality, it is not only the capability to read and write but also the ability to comprehend or understand the meaning and spirit of what is written or read. Similarly, Financial literacy means to exactly study the concepts, numbers, understand the implications and take timely and appropriate decisions. It applies to even otherwise well educated people-maybe Engineers, doctors and so on. This is relevant when they want to invest their hard-earned money for a better future and for specified goals in life. So when people who are not from the financial background and need to invest in financial products, they need to do a lot of homework to understand the nuances of smart investing so as to take advantage of multiplying their investments. The three basic thumb rules, while investing could be- Safety, liquidity and returns (ROI)… Even if one were to invest in professionally managed vehicles such as Mutual Funds, he needs to understand the various schemes and the background of the Company and their track record. So a continuous update of the Financial markets will help to develop prudent investment skills. It is always better to be in touch with well-known financial professionals and Brokers to update our knowledge and be guided by them.

Understanding the basics of investments is, of course, is not a rocket science. One has put in focused attention to know the channels and destinations in investments. Constant reading of financial papers and viewing Business channels will facilitate our learning fast. One has to keep his listening antenna high to catch the message signals from the markets. One should always remember that risk and return on investments are directly proportional and hence not to blindly invest in any asset but to diversify the same so that the risk is minimal. At the same time, a small percentage of our savings say 20 % could be invested in share markets directly or through Mutual funds as they have proven to have given better returns than bank deposits. Other important concepts while investing to be remembered are 1. Inflation and 2. Tax benefits. Similarly, even if insurance does not prove to be giving rewarding high returns, one has to invest in Life Insurance, medical insurance and other assets insurance for any unexpected eventualities and risk coverage.

So wish you happy and rewarding investment experience!

For all your Investment needs and queries, call your Professional Broker- Goodwill Wealth Management Pvt. Ltd.

further any query, kindly Contact Customer Support: 044 – 4032 9999