More and more people are opting for the DIY approach because of easy access to financial information, online brokers/fintech, and increasing awareness of financial products.

Whether you do it yourself or hire an advisor, remember that the most expensive advice is free advice. Investing is one of the areas of personal finance that has attracted more do-it-yourselfers than any other area of financial planning.

One might have done a good job of building a portfolio of mutual funds but your overall returns suffer because you failed to place tax-efficient funds/schemes. Or you've done a great job of saving for retirement but a major economic recession/pandemic strikes a few years prior to retirement and it derails your plans.

Certainly, there are many wonderful tools and information sources available online for investors to make wise decisions about investing. Also, many fintech companies make it easier than ever for investors to research, make decisions and implement savings and investment goals.

However, more choice often leads to lesser ability to make good decisions and investors can make the classic mistake of spending too much precious time on money when they could be spending it on higher priorities, such as family, health, or personal goals.

The old proverb, "The only person you can trust is you," is wise. However, choosing an advisor is something that only you can do for yourself. Here are some things to look for when selecting a financial advisor:

• Do they offer a full range of planning or do they simply sell a product?
• Do they include tax planning in their advice?
• Do they have a thoughtful approach to investing, or do they just drop their clients into template programs set up by their company?

Many investors mistakenly base the success of their portfolios on returns alone. Few consider the risk that they took to achieve those returns. Earlier Investors have known how to quantify and measure risk with the variability of returns, but no single measure actually looked at risk and return together.

The portfolio performance evaluation involves the determination of how a managed portfolio has performed relative to some comparison benchmark. Performance evaluation methods generally fall into two categories, namely conventional and risk-adjusted methods. The most widely used conventional methods include benchmark comparison and style comparison. The risk-adjusted methods adjust returns in order to take account of differences in risk levels between the managed portfolio and the benchmark portfolio.

The risk-adjusted methods are preferred to the conventional methods.

The evaluation of portfolio performance is important for several reasons. First, the investor, whose funds have been invested in the portfolio, needs to know the relative performance of the portfolio. The performance review must generate and provide information that will help the investor to assess any need for rebalancing of his investments.  

Although portfolio evaluation is the last step in the portfolio management process, it is by no means the least important. On the contrary, proper performance measurement, attribution, and appraisal can enhance the probability of success for the entire investment process.  

Millennials refer to those born around the turn of the millennium; at present they are between 20 and 35 years. These days most of the online Investment platform witnessing over 50% transactions are made by first-time investors.

You’ve probably been told that equity is the best wealth creator over the long term. But, if you’re new to the equity market, choosing a stock, or indeed a mutual fund scheme can be a daunting task.

Here are a few things to remember :

Start with low-risk investments:

You should pick low-risk schemes such as a liquid fund or Balanced Fund to get a positive first experience. Once you are comfortable and confident, introduce yourself to high-risk schemes such as equity fund or hybrid aggressive funds.

Define the Purpose :

One must decide upon the reason for investment, like Saving Taxes, Wealth Creation Or Financial Planning. This will help you to decide upon the investment horizon and amount of risk you can take. You can safeguard yourself from entering a wrong investment.

Give up bad financial habits :

You have easier access to credit cards and EMIs compared to the earlier generation. Don't spend money that you don't have. You will end up borrowing money at 36% from the banks.

Creat assets over experience or liabilities :

Have more focus on asset accumulation rather than spending money on lifestyle ( foreign vacation or buying a fancy bike). Maintain the right balance between short-term goals & long-term goals (Take help of financial advisor).

Keep the focus on asset allocation :

Many of you go by historical data and ended up investing in 100% equities. Important here is to understand your risk profile and cash flow requirement. Debt instruments are equally important for your portfolio.

Bottom line:

Managing your personal finances is not rocket science. People have been doing it for a very long period with success. But it is all a matter of trial and experience. Choosing the right financial advisor is crucial to the success of any financial plan. It is important to shop around for the right advisor. Look for someone who puts your interests first. A financial advisor can advise; it is eventually your decision to follow the given advice or not; after all, it is about your money!  

Investing is different from saving or trading. Generally investing is associated with putting money away for a long period of time rather than trading stocks on a more regular basis. Investing is riskier than saving money. Savings are sometimes guaranteed but investments are not.

Learning the fundamentals of investing is like learning a new language. Whether discussing stocks, bonds, and other investment vehicles to structures, fixed deposits. The good news is that once you have mastered the language and certain investing basics, you'll better understand how much of this works.

Let's look at the most common types of investments you will encounter: stocks, bonds, mutual funds, and real estate.

Stocks:

Stocks are a type of security that gives stockholders a share of ownership in a company. Stocks also are called “equities.” Without a doubt, owning stocks has been the best way historically to build wealth. Stocks are pretty simple: they're shares of ownership in a specific company. When you own a share of Infosys, for example, you own a tiny piece of that company.

Bonds:

Investing in Bonds has been considered one of the safest ways to make money. A bond is fixed-income security offered by governments and businesses. You lend them money for a set time period and at a fixed interest rate. A bond normally pays back your money plus the interest at the end of the lending period, the maturity date. Bonds and other fixed-income securities have a range of interest rates and risk levels. Many investors use an investment advisor to help them decide which bonds to buy and when to sell.

Mutual Funds:

Mutual funds are baskets of stocks or bonds. They come in all different shapes and sizes, from covering broad stock market indexes to focusing on specific sectors. One of the most popular ways to own stocks and bonds is through mutual funds. Mutual funds offer many benefits to investors, particularly to beginners who are just mastering investing basics. They're pretty easy to understand and allow you to diversify your investments over more companies.

Real Estate:

The world is full of people who are convinced that real estate is the only investment that makes sense. Whether you subscribe to that philosophy or not, there are more ways than ever to add real estate to your portfolio. Yes, you can buy a home for yourself, or properties to rent. There can be a high barrier to entry as the property is expensive.

Investing in a Bad Economy :

It's the nature of the world that sometimes bad things happen. When they happen to your investments or savings, you don't need to panic. Sometimes, you need to take a hit before you can make some money again, and holding on until the recession ends is the best plan.