One of the primary responsibilities associated with choosing a plan is to know what you are after. Whether it is child plan that you have been seeking out for, in terms of investment plan
for your kids, or general insurance policies that you are trying to get your head around, it makes sense to understand your own circumstances initially before you get into your decisions head on. Here is a gist of things that you may need to think about in the process:
1.What are your personal financial circumstances? No one would know this better than you. Investment may not be child’s play, but it’s not rocket science either, if you know yourself better. Wrong decisions start with stretching too much out of the way, or by not putting as much into your decisions as may be required. Plan based on your constraints.
2.What are your financial goals? This typically depends on the stage of life that you are in. Are you a beginner who could afford many risks? Are you someone who has had a few years of work experience? Are you someone with a family and looking for a child plan? Are you close to retirement?
3.What is your appetite to risk? Investments always come with risks, and your choice depends on the kind of Risk that you are willing to take. High returns come with high risks, while low risk would provide low returns. You could choose medium risk as well, if you want to go for portfolio.
If you could respond to these three questions with clarity, you would be able to choose the right plan.