What is Investment Planning?
Investment planning is an essential aspect of financial planning. It is the process of identifying financial goals and converting them into achievable targets by devising a thorough plan. After establishing the goals, the next step is to align them with available financial resources.
There are numerous investment vehicles. Some of the most common ones include:
5. Mutual Funds
An investment plan gives a sense of purpose and direction and will assist you in attaining maximum returns from your investment. It will also help you devise an investment strategy to transform your goals into reality.
Investment planning can often be anxiety-inducing, but you need not worry anymore. Shikana Group offers one of the most trusted investment planning services in Tanzania. They can provide you with insightful advice regarding investment opportunities so you can navigate all the barriers or hurdles that come your way.
One of the primary objectives of investment planning is to keep you and your families safe with regard to finance. An investment plan will allow you to weigh several opportunities and choose the safest vehicle option.
To generate higher income, you must also invest in high-risk opportunities. In this case, it is imperative to analyze the risk-return ratio to ensure you have a high chance of making income from your investment.
Investors can achieve growth in their capital when they sell securities for a higher price than when they purchased them. This requires thorough planning and long-term investments.
Many investors look for opportunities where they have to pay a minimum tax. In this case, it is important to do detailed research and devise a comprehensive investment strategy.
Investment plans will keep your finances and family safe. Specific plans offer a life insurance policy. If something happens to the earning member of a family, the rest are secure since survival and death benefits are provided.
Investment plans allow for the effective management of incomes and expenditures. Once income becomes manageable, the investor can focus on other expenses such as tax payments.
Investment plans allow investors to comprehend their current financial situation thoroughly. This will enable them to develop analytical skills and make informed decisions.
Having adequate savings is essential to handling emergency cases. Moreover, people can use investment savings at a later point in time when a person retires, hence, providing financial independence.
Investment savings can considerably improve living standards. They are instrumental during emergencies or hard times. For example, if the earning member of a family passes away, investment savings can help the other family members to a great extent.
Without appropriate planning, investments can often turn out to be detrimental. Hence, you must follow the steps below to develop a successful investment plan.
1. Have a fair idea about your savings
2. Set your goals in accordance with the amount of your savings
3. Analyze your risk-taking ability
4. Create a diversified investment portfolio
5. Educate yourself about different investment options
6. Calculate your asset allocation
7. Finally, choose the safest and most beneficial option
If you are looking for investment planning services in Tanzania, feel free to reach out to Shikana Group. Their legal team possesses vast knowledge about all the East African markets and will walk you through the entire process of devising a solid investment plan.
They offer investment advisory services within several domains, including but not limited to:
- Market Entry Services
- Advocacy and Strategic Communication
- Research, Policy, and Industry Insight
- Risk Management
- Investment Origination Services
- Fund and Capital Raising Services
Contact them to avail of these services, or you can visit their website for additional information.