Before we start talking about ‘your’ investment quotient, we must understand what investment quotient is. IQ, as it is called, is simply the ability to manage and obtain wealth by an individual who understands how money works. So, in a nutshell, investment quotient would mean the right mix of assets that are suitable for you based on various factors like education, spending, risk, protection, career, income, etc.
To understand it better, let’s look at it in this way – if you are young and starting out with a career which seems promising then your ability to take a risk is higher. You can invest in riskier financial assets in which there’s a chance of capital erosion but also a possibility of higher returns. However, if you are nearing your retirement, it is important that you invest in assets which are safer and give out decent returns to provide you with a steady flow of income.
Similarly, there are other factors like spending and aspirations. For example, if you wish to buy a house for yourself then the amount of investment might be higher as compared to something else like planning a trip abroad or wedding. Every factor decides how your investments are going to pan out – this is what is known as Investment Quotient or Financial Quotient.
Now, finding out one’s Investment Quotient can be a cumbersome task if you do not understand how the financial markets work. Also, you must possess a good understanding of different assets like stocks, real estate, bank deposits, gold, forex, etc and the kind of returns they give. For a layperson, all this might sound like a complicated jargon.
Therefore, it is important that you take help from a professional who has a long experience of working in this field. The professional can take your details and figure out your Investment Quotient (IQ) by evaluating everything carefully. A financial investment decision taken after considering all the factors will definitely fetch you more satisfactory returns.
While it is common knowledge that investment in the stock market is most profitable but having a diversified portfolio can be of greater benefit in the long run. While equity wins the game, real estate, gold and bank deposits follow. To decide better, take support from EPFP Catalyst, an organization of professionals with experience in consulting and coaching of more than 10,000 hours.
At EPFP, we provide you with free advice through half-day workshops and then you can opt for one of our short-term courses to learn the tricks of the trade. Call us now!