Investment Planning Tips for 2025: We are a few steps away from 2025 and ready to welcome the new year. With the change of year, new trends in the financial market are taking shape. In such a situation, this is the right time to understand the opportunities available in the new year. Whether you are an experienced investor or just starting, the investment methods that worked in 2024 may not necessarily work as well in 2025.
Table of Contents
Investment Planning Tips for 2025
By understanding some of the megatrends of 2025, you can gain a financial edge early in the year. There will be plenty of opportunities to consider in the new year, from investing in index funds to traditional insurance. Also, invest some money in gold for stability in your portfolio. Let’s consider the five megatrends of the new year…
Investment Planning Tips for 2025: Low cost, High Stability in Index Funds.
In the bull market of 2024, investors invested heavily in equity-oriented growth schemes. Under this, AUM increased by 49% to Rs 30 lakh crore. The 73% growth in multi-cap funds shows that investors want diversification.
The 42% growth in flexi-cap funds gave fund managers flexibility in volatile markets. But the real star was the index fund. Their AUM increased by 82% to above Rs 1 lakh crore. Investors are shifting to low fees, disciplined, and passive strategies to profit in the long term. Passive investing is no longer just an option; This is becoming the norm.
Investment Planning Tips for 2025: Insurance is Protection, not an Investment Vehicle.
Interest in buying insurance for investment is decreasing among Indians. Now people are looking at investment and security separately. They have started to understand that insurance is not a means of wealth creation but a means of protection.
Traditional endowment policies and unit-linked plans (ULIPs), once considered an integral part of investment portfolio and tax planning, are now losing their appeal.
The new tax regime also has a big role in this. Deduction on life insurance premiums has been abolished. According to a survey, only 37% of salaried people invested in insurance-linked products in 2024. In 2022 this figure was 46%.
Investment Planning Tips for 2025: Investing Directly in Equities Managing a Risky Stock
The portfolio is a little more difficult. Given the dynamics of the stock market, it can be difficult to decide when to buy, hold, or sell. Given the post-tax returns from direct equity (share market) investments, many people find investing in passive index funds a good idea.
Many investors are beginning to realize that the returns may not be commensurate with the time and stress involved in investing directly in equities. If you too are having trouble investing directly in equities, it may be time to change your strategy and adopt a more practical approach.
Liquid Funds are Better for Stable Returns
The convenience of redeeming anytime and greater tax efficiency than FDs are making liquid funds popular. While in FDs TDS is levied on an annual basis, in debt funds the tax is levied only on redemption. This feature makes them an attractive option for those seeking stable returns. This is the reason why 7 out of the top 8 debt funds in the country are liquid funds.
Your 2025 financial plan
— Kalu Aja (@FinPlanKaluAja1) December 16, 2024
1. Track and write down all your income and expenses. Every kobo
2. Categorize your income into Active and Passive
3. Categorize your expenses into Discretionary and Discretionary
4. Allocate funds to subheads in each category. Then track
5. Your… pic.twitter.com/btUe8FucW2
Investment Planning Tips for 2025: Returns from Investing in Gold Can Increase
In 2024. From retail investors to central banks across the world, they bought gold extensively. This year gold gave more than 20% returns. This trend is expected to continue in 2025. Gold is a safe investment in times of inflation and uncertainty. Keeping gold in your portfolio is a smart move as per your risk appetite. There may be an opportunity to buy it even if the price decreases slightly.
Jay Chavda He is the Founder and Writer of businesspulsecare.com. He is an I.T Engineer, Freelancer, Businessman. He posts Business, Stock/Share Market, Finance Related News and updates on the website. 🔗