“Sahi Nivesh Zaroori Hai”

A Financial Awareness Initiative

Sahi Nivesh

Credence Investments has started a financial awareness programme known as “Sahi Nivesh Zaroori Hai” which aims at spreading the awareness about benefits of Right Investment.

What is Right Investment….?

Most investors look out for investments in which they get sky-high returns as quickly as possible without the risk of losing the principal amount. Their investment decisions usually stage around finding the best return on financial instruments.

However, a high-return and low-risk combination in any investment product, unfortunately, does not exist. In reality, risk and returns are directly related, they go hand-in-hand, i.e. the higher the returns – the higher the risk and vice versa.
While selecting an investment avenue, you have to match your own risk profile with the associated risks of the product before investing. There are some investments that carry high risk but have the potential to generate higher inflation-adjusted returns than other asset classes in the long term while some investments come with low-risk and therefore lower returns.

There are Two Buckets that investment products fall into and they are Financial Assets and Non-Financial Assets.

Financial Assets

Financial assets can be divided into market-linked products (like stocks and mutual fund) and fixed income products (like Public Provident Fund, bank fixed deposits).

Non-Financial Assets

Many Indians invest via this mode - are the likes of Physical Gold and Real Estate

Some of the above investments are fixed-income while others are financial market-linked. Fixed-income and market-linked investments have a role to play in the process of wealth creation. Market-linked investments offer the potential of high returns but also carry high risks. Fixed income investments help in preserving the accumulated wealth so as to meet the desired goal. For long-term goals, it is important to make the best use of both worlds.

Have a judicious mix of investments keeping risk, taxation and time horizon in mind

How to choose RIGHT INVESTMENT....?

Filtering down the product categories helps you shortlist the fund that you need to look at. Important points to keep in mind before finalising the list are:

We need to match our financial needs to financial products. Each financial product has a certain time period over which it works best. A product that is very safe in long term becomes very risky in short term and a product that works in short  term becomes laggard on returns if you stay for long. So, holding time period is important. Every financial product has a role and solves a specific problem. So don’t just buy the product because it is sold to you. Financial products are dynamic and need an update once in a while. It is best either you do your own research or work with a financial planner.


We need a proper structure and not a one-shot solution. Proper planning and strategy can help you get closer to the target.

We resist investing for many reasons such as:

No money

Concerns about safety

Not knowing where to invest….

are just some of the excuses we make. Let’s understand the right way to think about investing so that we take risk, but with the safety net.

We all have heard stories of doubling money from 10 lacs to 10 crores through property, stocks etc. but we never seem to buy the right product. It is never the “RIGHT” time to begin investing. Sometimes you feel you are too poor, or too young or too dumb to begin. The right time is now. No matter what your age, state or circumstances, you need to begin investing right away.
We believe managing your finances is not the luxury for the rich, it is hygiene for everyone. Good investment is not about making good decisions. It’s about consistently not screwing up.




Just because you have made a good plan doesn’t mean it’s going to happen; right execution is the key

Having a thoughtful and strategic plan is never enough. You can plan all day long but if you do not start taking action to realize your goals, you will never achieve them. You want results, and that means execution and you must take action! Therefore, the execution of a financial plan is the next step involved in the process.

This step includes the implementation; monitoring and ongoing adjustments of the plan to make sure you stay on track and reach your most important financial goals. It often requires discipline and patience, as the execution of a financial plan is a bit of a lengthy process. Those who do not have enough time to manage the process on their own have obtained help from professionals such as financial planners and investment advisers.