My Personal Investment Strategy: A Comprehensive Guide

Investing is a journey that requires careful planning and a personalized approach. Each individual has unique goals, financial situations, and earning potentials. It is crucial to have a well-thought-out strategy to ensure a secure future. Here, I will share my personal investment strategy.

Defining Your Goals

The first step in any investment strategy is to set SMART (Specific, Measurable, Achievable, Relevant, Time-bound) goals. These goals should guide your financial planning and ensure that your investments align with your long-term objectives. By linking your assets to specific goals, you can create a more coherent financial plan.

Diversification: The Key to Risk Management

Diversification is a cornerstone of my investment strategy. By spreading your investments across different asset classes, you can mitigate risks and potentially achieve better returns. I personally diversify across funds such as equity mutual funds, bond funds, and crypto investments.

My Personal Investment Plan

I dedicated 15% of my salary to my investment strategy. Here is a breakdown:

Equity Mutual Funds

I allocate 5-10% of my salary to equity mutual funds, which are suitable for long-term future goals. Specifically, I invest in:

Nifty50 Mutual Fund: 10,000 INR per month (indicating a diverse market focus) Nifty Next 50 Mutual Fund: 10,000 INR per month (targeting mid-cap stocks) Small Cap Mutual Fund: 10,000 INR per month (for high growth potential) FAANG ETF: 10,000 INR per month (indexing to a well-known tech sector) Total US Stock Market ETF (VTI): 10,000 INR per month (for exposure to the U.S. market)

Provident Fund

A significant portion, 10% of my salary, is allocated to the Provident Fund. This provides both tax benefits and a secure savings plan as a debt investment. The money invested here will not be subject to emotions and is intended for long-term stability.

Term Insurance with a disability rider is another crucial component of my strategy. Ensuring that my family is secure in my absence provides peace of mind and financial protection.

Cryptocurrency Investments

I also allocate a portion of my salary to cryptocurrency investments. This includes:

Bitcoin: 15,000 INR per month Ethereum (ETH): 15,000 INR per month One small coin every month of 5,000 INR each

For the next three years, I am making EMIs (Equated Monthly Installments) of 65,000 INR to invest in a startup through the exercise of company ESOPs. This is a riskier but potentially high-reward investment.

NPS, PPF, and LIC

I also contribute to National Pension Scheme (NPS), Public Provident Fund (PPF), and Life Insurance Corporation (LIC) for additional financial protection and benefits:

NPS: 4,000 INR per month, with 12 contributions per year (one-go strategy) PPF: 12,000 INR per month, with 12 contributions per year (one-go strategy in April) LIC: 6,000 INR per month, with 12 contributions per year (one-go strategy)

In addition, I occasionally invest in stocks whenever a particular stock seems to be in the buying range. For these months, I pause my mutual fund investments and allocate the remaining amount (around 25-30,000 INR) to stock investments.

I maintain a trading portfolio for long-term investing or trading, ensuring that the funds in the 'gravity-free zone' are not easily accessible, reducing emotional interference and aiding in sticking to a long-term strategy.

Conclusion

Investing wisely requires understanding your own goals, planning, and adopting a diversified approach. By following a personalized investment strategy, you can build a secure financial future. If you have any questions or need further guidance, feel free to reach out!

Happy investing!