1. Investment Planning
CA K.Raghu
Immediate Past President, The Institute of Chartered Accountants of India

2. Introduction
Investment planning is the process of matching your financial goals and objectives with your investment resources.
Planning is the most important part of the investing process, yet most investors spend the least amount of time on it.

3. An Eye on Indian Economy
India's economy became the world's fastest growing major economy from the last quarter of 2014, replacing the People's Republic of China.
The long-term growth prospective of the Indian economy is moderately positive due to its young population.
And the outlook for short-term growth is also good as according to the IMF, the Indian economy is the "bright spot" in the global landscape.

4. Money Market Instruments
Investment Options
Equity
Bonds
Mutual Funds
Money Market Instruments
PPF
Real Estate
Gold
Deposits

5. Birds Eye View on the Various Investment Options
Investment Avenue
Short Term / Long Term
Risk
Return
Liquidity
Equity
Depends on the Investor
High
High ( Not Guaranteed)
Depends on the Company*
Bonds
Long Term
Low
High (Guaranteed)
Moderate
Mutual Funds**
(Generally, Long Term)
Money Market Instruments
Short Term
* If Company’s Equity Shares are Listed in Stock Exchange , then Liquidity is High. Otherwise, Liquidity is Moderate.
** Mutual Funds are the best investment options for investors having of Lack of technical knowledge.

6. Birds Eye View on the Various Investment Options
Investment Avenue
Short Term / Long Term
Risk
Return
Liquidity
Public Provident Fund (PPF)
Long Term
Low
Moderate
Real Estate
Depends on the Investor
(Generally, Long Term
Gold
Certificate of Deposits
High

7. How to select your Choice of Investment ?

8. Steps in Investment Planning Process
Determine your goals for the future
Decide how much you can initially use for investments
Consider your comfort level in regard to taking risks
Diversify your selection of investments. 
Learn the marketplace.

9. 1. Determine your goals for the future
Each Investor has unique investment objectives that are affected by Short-Term and Long Term needs and requirements.
Step back and reflect on your short- and long term goals, such as funding college for children, business expansion, travel plans, or retirement needs.

10. 2.Decide how much you can initially use for investments
It is very important to decide your initial investment amount.
How much amount you have to start your investment.

11. 3. Consider your comfort level in regard to taking risks
It is very important to also decide your comfort level of bearing the risk.
Based on your Potential of bearing the risk, decide your amount of investment.

12. 4. Diversify your selection of Investments
Select your investment avenue based on your -
Amount of Investment
Potential of bearing the Risk
Don't keep all the eggs in one basket, go for diversification of funds

13. 5. Learn the Marketplace
It is very important for an investor to have knowledge about the Stock Markets and impacts of various economic events on the his / her investment.
Any Investor with a lack of above knowledge may end up losing his Money.

14. Essential requirements for a Good Investment
Complete Safety
High Liquidity
High Rate of Return
No or Minimal Transaction Costs
No or Minimal Taxes
Easy to Understand

15. Investment Strategy Develop a habit of small savings
Save for a rainy day since future is uncertain
Pay your liabilities as soon as possible
Create a source for Passive Income eg. Rental Income and Dividend income

16. Investment Strategy Spend less than what you earn
Invest in Tax Saving Investment schemes
Take Personal interest in Investment decisions
Plan for your retirement

17. Investment Mix Your investment portfolio should take care of your :
Current needs of your family
Children educational needs
Children’s Marriage
Buying a House
Pension after retirement.

18. Tips for Investing Safely and Rightly
Don’t make your investment decisions on hear say.
Review and track your investments periodically.
Market study and analysis should be done before investing
Take the help of an Investment Consultant

19. Investment Tips for Beginners
Start saving and investing early in life.
Prepare an investment roadmap.
Invest in a diversified portfolio.
Invest in Stocks if you are prepared to take risks.
Invest in Mutual Funds if you are prepared to take moderate risks.

20. Investment Tips for Beginners
Have an investment discipline.
Don’t start your investment with stock market as it requires expertise and experience.
Don’t take any investment decision,
when market is unstable.
Investment decision should be based on the long/medium/short term needs of the investor.

21. Conclusion
World of investments becoming more interesting, exciting and complicated.
Investment Planning is a must for every person.
Investment Planning thus involves Intelligent analysis, judicious decision making and a strong sense of visualization.