You must have heard about the Index long Term strategy developed by Finideas and might be wondering what makes it so special. If you ask us, one thing that we are most proud of is the way it makes it possible to build wealth in the most disciplined way.
Before we explain this in detail, we need to know why disciplined investing is so important.
What is disciplined investing?
Investing is a risky business. But, if you are smart about what you choose to invest in and how much money you put into it, your chances of success are good. That is where disciplined investment comes in.
Disciplined investment is a type of investing where an individual or group makes disciplined decisions about when, how much and what to invest to achieve their financial goals. By following a set of rigid guidelines, disciplined investors can mitigate the risks associated with investing, while also maximizing their returns.
By following a disciplined investment plan, disciplined investors can:
- Build a balanced portfolio of equities and fixed income investments.
- Manage their risk to maximize returns.
- Minimize taxes and fees when investing.
- Establish and maintain a tax-efficient portfolio.
Disciplined investment is not a strategy, but rather a way of investing. The discipline is applied to the investment process and not necessarily to the final portfolio.
Why Disciplined Investment Is Important?
Discipline is one of the most critical factors in creating wealth. When you invest your money in the right way with a lot of discipline, it can grow over time and provide you with significant financial security. A disciplined approach to investing helps you build wealth over time by making wise investments that pay off.
The Benefits Of Disciplined Investment
By following a disciplined investment plan, you can achieve one or more of the following:
- Increase the odds of reaching your financial goals.
- Better control over your finances.
- More peace of mind when making decisions about investments.
- Greater opportunity for diversification and growth in your portfolio.
- You will have more money when you need it.
- You will have more money over the long term.
- You will be able to retire sooner than you think possible.
- You will have less stress in your life and less anxiety about money matters.
- You will feel better about yourself as an individual and as a financial planner/investor because you will have reached your goals!
- You will be able to give more to those who need it.
Read Also: How to Take Control of Your Investments?
Implement disciplined investment in your own life
There are a few steps you can take to help implement disciplined investment in your own life.
- First, be aware of your own spending patterns and develop a plan to change them if you find mistake in them.
- Second, create an investment plan and make sure it is tailored to your financial goals and needs.
- Third, establish reasonable expectations for yourself and stick to them.
- Fourth, monitor your portfolio regularly and make the necessary adjustments from time to time.
- Fifth, understand that there is no one-size-fits-all approach to investing; find what works best for you and stick with it.
- Finally, keep in mind that discipline takes time and effort – do not expect everything to change overnight.
Disciplined investing with Index Long Term Strategy
At Finideas, we strongly believe that everyone must not only just invest for the sake of investing but must invest in a disciplined way. We have created our flagship investment plan called “Index Long Term Strategy” with this in mind.
The motto of Index Long Term Strategy is: “Equity + Safety = Prosperity”
There are two core pillars of disciplined investing built into ILTS:
Pillar 1: Investment in Index oriented assets:
We invest your money in the relatively safer Index ETFs & Index Futures. The reason for this is to bring in predictable returns in your portfolio with relatively lower risk.
As you know, Index funds / ETFs invest in a basket of stocks that replicate a well-known index and that the value of an index can realistically never become zero. No matter what happens, no matter how much the value of the basket of stocks in an index goes up or down, a good Index ETF will always perform in a stable way and bring in returns that are similar to the returns generated by the benchmark index.
Pillar 2: Protection of Investment
After investing money in the Index ETFs, we purchase Put Options to protect the portfolio from unexpected downward movement. This gives the portfolio an additional layer of protection against losses.
Step 3: Invest the remaining money in Debt Funds
After executing Pillars 1 & 2, we invest the remaining money in debt assets. These assets are safe and liquid. We also get some additional low-risk income from these debt funds.
The result of this disciplined approach to investing is prosperity. We take care of your money, invest, and protect it in the most disciplined way and get you the best returns possible. This is a very reliable way of building wealth that everyone who has the minimum investment corpus needed should go for.
Read Also: Systematic Investment Plan Vs Lumpsum Investment – Which one is better?
Why disciplined investment is the key to building wealth
The investment experts of Finideas help you to secure your financial future by following a disciplined investment approach while managing its Index Long Term Strategy Portfolios of its investors. We always try to build a healthy portfolio that will help you achieve financial stability down the road.
Get in touch with us to discuss your goals and get a free consultation from one of our portfolio managers about your investment portfolio.
Happy Investing!
This article is for education purpose only. Kindly consult with your financial advisor before doing any kind of investment.