Time Horizon

All investment carry some risk based on the income generation capacity. If you are planning to invest in shares, one should consider the price fluctuations in your investments.

If the investment is for a long time, then you will probably tolerate more risk as you get more time to cover up your loses.

Investing at different Life Stages

An individual goes through different life stages professionally and personally. Financial investment should vastly depend on the stage you are and your near term and far term commitments.

Investing when you get a hike may differ from when you are planning for your kids education or for retirement. So, asset allocation plan a major role in investment.

Returns Expected and Risk

Investment mostly depends on the returns you expect depending on that one can choose whether to invest heavily into equities or debt or balance your portfolio.

One must know that risk and return go hand in hand. If you looking for better returns in short time, then you should be ready to bear risk if the market fluctuates.

How much to invest?

You should also know for what purpose you are investing and how much you need and the final amount. These factors will help you decide how much should invest now to reach that magic number.

Considering Tax avenues

Government has some best tax saving investment options which will help you in saving tax and help you save more as most of the tax saving instruments come with minimum lock in period.

Come out of debt

Before anything, better to come out of debt as debt will hardly help you to save and invest more. Avoid unnecessary loan for luxury, make less use of credit cards. Save your credit score for home loan.

Emergency fund

Setting aside emergency fund is very vital as it will help you not to touch your investment in case of need. Or else you will end up using you investment and may lose the expected return.