Today if I am going to ask an individual to pen down the four most important things, in decreasing order of priority, that he indulge him selves in with his monthly earnings, investment will come on last i.e. fourth number.


Take a spot survey in a group of people and raise a question why do we invest. Without a second thought, you will get the reply to save tax. If we go deeper then will get a reply from people that they would like to invest for the child higher study or personal security.

In fact, it is not surprising that most of us might skip the savings and investment aspects altogether. We give a higher preference to making ‘lifestyle’ purchases as well expenses such as dining out at the exclusive restaurants in the town, buying up on the latest trends in fashion and spending out the money whilst socializing along with the friends.

“Save for a rainy day” goes a wise old saying. While saving worked in the past, today, you need to invest. If you believe that saving and investing imply the same thing, think again.

When it comes to handling finances, being ignorant can prove very costly sometimes. Adopting a casual approach to managing finance and investment can lead to distortion of our wealth. Same can severely affect the financial health of an individual.

Merely saving the money and investing it at regular intervals does not serve the purpose. What is important that this investment or money is channeled towards meeting the short term and long term financial goals? While saving is a part of an individual income that you put away regularly, same does not necessarily provide returns. Same can be used in meeting the short-term needs of an individual. Investing in different assets class, on the other hand, provides returns. Same also helps an individual in growing the capital, which in turn, will help you fulfill your long-term financial goals.

Investment helps an individual in

  • To counter lower interest rates;
  • Help in maintain standard of living;
  • Be prepared for emergencies;
  • Provide financial security;
  • Help is fulfilling the financial goals;
  • Wealth creation;
  • To beat inflation.


Now next step is to ask yourself after 5-10 years time how’s much money one is looking for. In case you are not getting the answer to this question. Think about the following under-mentioned five steps.

Step 1- Goal Identification;

Step 2- Plot the time Horizon;

Step 3- Quantify the Goals;

Step 4- Select Investment Avenues;

Step 5- Select Investment Method.

In market different assets are available for investment; one can choose the same as per individual needs. These different asset classes include:

  • Investment in Equity;
  • Investment in Stock derivative;
  • Investment in mutual funds;
  • Buying insurance policy;
  • Investment in Government security;
  • Investment in bonds, debentures, and corporate fixed deposit.

Other then mentioned investment venues. One can also plan to invest in other sector as well like:

  • Energy
  • Tourism & Agro business.

Same sectors can offer you good return of investment (i.e. ROI) at the same time have a lot of scope.

In case still have a second thought, connect with Kaukapital professional team. They have good 10 years experience in providing their valuable services to an aspiring individual in choosing the right investment along with defined horizon time.