5 Pprinciples of Financial Planning

Do you want to achieve financial freedom as early as possible?
You want to but don't know how to do it?
Do you know the principles that make up for successful financial planning?
Do you save a decent part of your salary and want to invest it in good mutual funds?
How much saving is enough for you to begin investing in mutual funds for the long term?
What are the returns that you can expect?
You have bought more than half a dozen mutual funds and want to pare your exposure so that you can focus only on a few?
Which are the best mutual funds to invest in for the long term?
Financial planning expert Vetapalem Sridhar

answered these and several other queries related to financial planning and freedom for you and your family.

For those of you who missed the chat, here is the transcript.

Suresh asked,

GoodAfternoon Sridhar.
I have Rs.10000 every month after all my monthy expenditures are done.
Could you tell me what principles should i keep in mind while financial planning?
Could you provide a basic plan also?

Vetapalem Sridhar answers,

Hi Suresh, There r simple rules that u should keep in mind regarding Financial Planning.

1. Have clear defined objectives in life.
2. Never mix Insurance and Investments.
3. Ur risk profile does not depend only on ur feeling of fear. It primarily depends on the horizon of investing. The longer the horizon, the more is the risk taking ability.
4. A suitable Asset Allocation Plan (Debt/Equity/ Real Estate) is the key to long term success of a Financial Plan.
5. Be aware of wat is happening to ur money, even if u r taking external help. Unless u put persomal effort the money will not grow to the best of its potential.

'Financial freedom is all about discipline'
http://www.rediff. com/getahead/ 2007/dec/ 06trans.htm