Creating Wealth For Investors

Most of us invest without realising why we are investing. It sounds ironical, isn’t it? But it is true.  We actually plan our vacations more meticulously than our investments.  We don’t have goals linked with our investments and hence we do not have any benchmark for comparison. By goals I mean we do not categorise our investments into different time spans like short, mid and long term funds. For example, if we have a lump sum to invest we should plan for an amount, which will be available to us at a short notice. Medical emergencies and other contingencies and investments in fixed deposits or cash or liquid funds are called short-term funds. Anything like a plan to buy a car or a vacation falls into a category of a mid-term fund requirement. One can typically invest in bond funds or large-cap funds for a minimum period of three years to five years. Funds that...