A Financial plan gives us an opportunity to save money for your future needs by Investing in financial instruments. There is no such thing as a good Investment plan or a bad investment plan. Each plan can be good or bad depending on how well you create your plan Basis your needs.
You might choose a long-term plan for high returns or a short-term plan for gaining minimal returns, which mainly depends upon your goals. Therefore, it is important to create an investment plan wisely keeping in mind your Financial goals. We have listed some of the steps to create the best investment plan.
One needs to understand his or her risk profile here for investing. Risk profile would depend on various factors such as:
Risk Ratings |
---|
Aggressive |
Moderately Aggressive |
Moderate |
Moderately Conservative |
Conservative |
Once you have your Risk assessment or rating in place, the next step is to choose the Asset Allocation.
Talk to our investment specialist
Putting all your eggs in one basket is never a good idea, and hence one needs to diversify their holdings across asset classes (equity, debt, cash, commodities {Gold}). This asset allocation will ensure that various asset classes perform over time and give a good return on the overall Portfolio.
A sample asset allocation could be:
Aggressive | Moderate | Conservative | |
---|---|---|---|
Annual return | 16% | 14% | 11% |
Annual Standard Deviation | 15% | 10% | 6% |
Debt | 30% | 50% | 70% |
Equity | 60% | 40% | 20% |
Commodity | 10% | 10% | 10% |
Total | 100% | 100% | 100% |
Given the risk that one can take, different allocations to equity are proposed. The higher the risk-taking ability more the allocation to equity. There are also various thumb rules like equity allocation to be 100 - (age of the person in years) and rest to be in debt.
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2024 (%) Sub Cat. DSP Equity Opportunities Fund Growth ₹598.008
↓ -1.98 ₹15,502 -2.5 11.6 -5.2 19.3 21 23.9 Large & Mid Cap Aditya Birla Sun Life Small Cap Fund Growth ₹82.2854
↓ -0.29 ₹5,011 -1.9 18.1 -7.5 16.9 22.1 21.5 Small Cap Kotak Standard Multicap Fund Growth ₹82.518
↓ -0.19 ₹53,293 -1.3 15.3 -0.2 16.2 18.2 16.5 Multi Cap Motilal Oswal Multicap 35 Fund Growth ₹61.1164
↑ 0.04 ₹13,727 1.4 15.8 3.4 23 18.8 45.7 Multi Cap Invesco India Growth Opportunities Fund Growth ₹98.98
↓ -0.83 ₹8,007 4 22.3 6.2 24.5 23 37.5 Large & Mid Cap Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 29 Aug 25 Research Highlights & Commentary of 5 Funds showcased
Commentary DSP Equity Opportunities Fund Aditya Birla Sun Life Small Cap Fund Kotak Standard Multicap Fund Motilal Oswal Multicap 35 Fund Invesco India Growth Opportunities Fund Point 1 Upper mid AUM (₹15,502 Cr). Bottom quartile AUM (₹5,011 Cr). Highest AUM (₹53,293 Cr). Lower mid AUM (₹13,727 Cr). Bottom quartile AUM (₹8,007 Cr). Point 2 Oldest track record among peers (25 yrs). Established history (18+ yrs). Established history (15+ yrs). Established history (11+ yrs). Established history (18+ yrs). Point 3 Top rated. Rating: 5★ (upper mid). Rating: 5★ (lower mid). Rating: 5★ (bottom quartile). Rating: 5★ (bottom quartile). Point 4 Risk profile: Moderately High. Risk profile: Moderately High. Risk profile: Moderately High. Risk profile: Moderately High. Risk profile: Moderately High. Point 5 5Y return: 20.99% (lower mid). 5Y return: 22.05% (upper mid). 5Y return: 18.25% (bottom quartile). 5Y return: 18.76% (bottom quartile). 5Y return: 23.04% (top quartile). Point 6 3Y return: 19.28% (lower mid). 3Y return: 16.90% (bottom quartile). 3Y return: 16.19% (bottom quartile). 3Y return: 22.96% (upper mid). 3Y return: 24.55% (top quartile). Point 7 1Y return: -5.21% (bottom quartile). 1Y return: -7.47% (bottom quartile). 1Y return: -0.16% (lower mid). 1Y return: 3.43% (upper mid). 1Y return: 6.20% (top quartile). Point 8 Alpha: -1.90 (bottom quartile). Alpha: 0.00 (bottom quartile). Alpha: 2.01 (lower mid). Alpha: 10.18 (upper mid). Alpha: 12.86 (top quartile). Point 9 Sharpe: -0.52 (bottom quartile). Sharpe: -0.43 (bottom quartile). Sharpe: -0.31 (lower mid). Sharpe: 0.11 (upper mid). Sharpe: 0.28 (top quartile). Point 10 Information ratio: 0.28 (lower mid). Information ratio: 0.00 (bottom quartile). Information ratio: 0.24 (bottom quartile). Information ratio: 0.80 (upper mid). Information ratio: 1.21 (top quartile). DSP Equity Opportunities Fund
Aditya Birla Sun Life Small Cap Fund
Kotak Standard Multicap Fund
Motilal Oswal Multicap 35 Fund
Invesco India Growth Opportunities Fund
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 2024 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity Sub Cat. Aditya Birla Sun Life Medium Term Plan Growth ₹40.2079
↓ -0.05 ₹2,744 0.9 4.7 12.7 9.2 10.5 7.44% 3Y 6M 18D 4Y 9M 4D Medium term Bond Nippon India Strategic Debt Fund Growth ₹15.8738
↓ -0.02 ₹106 2.3 6.1 10 8.1 8.3 7.21% 3Y 2M 26D 4Y 3M 29D Medium term Bond Axis Strategic Bond Fund Growth ₹28.2419
↓ -0.02 ₹1,938 0.7 4.5 8.4 7.8 8.7 7.64% 3Y 4D 3Y 9M 25D Medium term Bond ICICI Prudential Gilt Fund Growth ₹102.404
↓ -0.30 ₹7,330 -1.2 3.4 6.8 7.6 8.2 6.63% 4Y 2M 5D 12Y 9M 7D Government Bond SBI Magnum Gilt Fund Growth ₹65.0537
↓ -0.21 ₹11,980 -3.1 2.1 4.5 7.2 8.9 6.73% 8Y 4M 28D 17Y 3M 18D Government Bond Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 29 Aug 25 Research Highlights & Commentary of 5 Funds showcased
Commentary Aditya Birla Sun Life Medium Term Plan Nippon India Strategic Debt Fund Axis Strategic Bond Fund ICICI Prudential Gilt Fund SBI Magnum Gilt Fund Point 1 Lower mid AUM (₹2,744 Cr). Bottom quartile AUM (₹106 Cr). Bottom quartile AUM (₹1,938 Cr). Upper mid AUM (₹7,330 Cr). Highest AUM (₹11,980 Cr). Point 2 Established history (16+ yrs). Established history (11+ yrs). Established history (13+ yrs). Oldest track record among peers (26 yrs). Established history (24+ yrs). Point 3 Top rated. Rating: 4★ (upper mid). Rating: 4★ (lower mid). Rating: 4★ (bottom quartile). Rating: 4★ (bottom quartile). Point 4 Risk profile: Moderate. Risk profile: Moderate. Risk profile: Moderate. Risk profile: Moderate. Risk profile: Moderate. Point 5 1Y return: 12.74% (top quartile). 1Y return: 10.04% (upper mid). 1Y return: 8.43% (lower mid). 1Y return: 6.84% (bottom quartile). 1Y return: 4.49% (bottom quartile). Point 6 1M return: -0.08% (upper mid). 1M return: -0.22% (lower mid). 1M return: 0.01% (top quartile). 1M return: -1.31% (bottom quartile). 1M return: -1.65% (bottom quartile). Point 7 Sharpe: 2.94 (top quartile). Sharpe: 1.62 (lower mid). Sharpe: 1.96 (upper mid). Sharpe: 1.16 (bottom quartile). Sharpe: 0.20 (bottom quartile). Point 8 Information ratio: 0.00 (top quartile). Information ratio: 0.00 (upper mid). Information ratio: 0.00 (lower mid). Information ratio: 0.00 (bottom quartile). Information ratio: 0.00 (bottom quartile). Point 9 Yield to maturity (debt): 7.44% (upper mid). Yield to maturity (debt): 7.21% (lower mid). Yield to maturity (debt): 7.64% (top quartile). Yield to maturity (debt): 6.63% (bottom quartile). Yield to maturity (debt): 6.73% (bottom quartile). Point 10 Modified duration: 3.55 yrs (lower mid). Modified duration: 3.24 yrs (upper mid). Modified duration: 3.01 yrs (top quartile). Modified duration: 4.18 yrs (bottom quartile). Modified duration: 8.41 yrs (bottom quartile). Aditya Birla Sun Life Medium Term Plan
Nippon India Strategic Debt Fund
Axis Strategic Bond Fund
ICICI Prudential Gilt Fund
SBI Magnum Gilt Fund
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 2024 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity Sub Cat. UTI Banking & PSU Debt Fund Growth ₹22.1725
↓ -0.01 ₹810 1.1 4.6 8.2 7.1 7.6 6.47% 1Y 9M 11D 2Y 11D Banking & PSU Debt HDFC Corporate Bond Fund Growth ₹32.7428
↓ -0.03 ₹35,968 0.1 4.1 7.9 7.5 8.6 6.88% 4Y 2M 12D 6Y 9M 11D Corporate Bond HDFC Banking and PSU Debt Fund Growth ₹23.1776
↓ -0.01 ₹5,935 0.3 4.3 7.8 7.2 7.9 6.78% 3Y 6M 7D 5Y 1M 17D Banking & PSU Debt Aditya Birla Sun Life Corporate Bond Fund Growth ₹113.433
↓ -0.16 ₹28,598 0 3.9 7.7 7.6 8.5 6.9% 4Y 6M 11D 6Y 10M 17D Corporate Bond PGIM India Short Maturity Fund Growth ₹39.3202
↓ 0.00 ₹28 1.2 3.1 6.1 4.2 7.18% 1Y 7M 28D 1Y 11M 1D Short term Bond Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 29 Aug 25 Research Highlights & Commentary of 5 Funds showcased
Commentary UTI Banking & PSU Debt Fund HDFC Corporate Bond Fund HDFC Banking and PSU Debt Fund Aditya Birla Sun Life Corporate Bond Fund PGIM India Short Maturity Fund Point 1 Bottom quartile AUM (₹810 Cr). Highest AUM (₹35,968 Cr). Lower mid AUM (₹5,935 Cr). Upper mid AUM (₹28,598 Cr). Bottom quartile AUM (₹28 Cr). Point 2 Established history (11+ yrs). Established history (15+ yrs). Established history (11+ yrs). Oldest track record among peers (28 yrs). Established history (22+ yrs). Point 3 Top rated. Rating: 5★ (upper mid). Rating: 5★ (lower mid). Rating: 5★ (bottom quartile). Rating: 5★ (bottom quartile). Point 4 Risk profile: Moderate. Risk profile: Moderately Low. Risk profile: Moderately Low. Risk profile: Moderately Low. Risk profile: Moderate. Point 5 1Y return: 8.17% (top quartile). 1Y return: 7.85% (upper mid). 1Y return: 7.79% (lower mid). 1Y return: 7.73% (bottom quartile). 1Y return: 6.08% (bottom quartile). Point 6 1M return: 0.22% (upper mid). 1M return: -0.31% (bottom quartile). 1M return: -0.16% (lower mid). 1M return: -0.39% (bottom quartile). 1M return: 0.43% (top quartile). Point 7 Sharpe: 1.86 (top quartile). Sharpe: 1.46 (lower mid). Sharpe: 1.31 (bottom quartile). Sharpe: 1.54 (upper mid). Sharpe: -0.98 (bottom quartile). Point 8 Information ratio: 0.00 (top quartile). Information ratio: 0.00 (upper mid). Information ratio: 0.00 (lower mid). Information ratio: 0.00 (bottom quartile). Information ratio: 0.00 (bottom quartile). Point 9 Yield to maturity (debt): 6.47% (bottom quartile). Yield to maturity (debt): 6.88% (lower mid). Yield to maturity (debt): 6.78% (bottom quartile). Yield to maturity (debt): 6.90% (upper mid). Yield to maturity (debt): 7.18% (top quartile). Point 10 Modified duration: 1.78 yrs (upper mid). Modified duration: 4.20 yrs (bottom quartile). Modified duration: 3.52 yrs (lower mid). Modified duration: 4.53 yrs (bottom quartile). Modified duration: 1.66 yrs (top quartile). UTI Banking & PSU Debt Fund
HDFC Corporate Bond Fund
HDFC Banking and PSU Debt Fund
Aditya Birla Sun Life Corporate Bond Fund
PGIM India Short Maturity Fund
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 2024 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity Sub Cat. Aditya Birla Sun Life Savings Fund Growth ₹554.641
↑ 0.03 ₹20,795 1.7 4 7.9 7.4 7.9 6.6% 5M 26D 7M 2D Ultrashort Bond Indiabulls Liquid Fund Growth ₹2,548.77
↑ 0.39 ₹393 1.5 3.3 7 6.9 7.4 5.77% 1M 10D 1M 11D Liquid Fund PGIM India Insta Cash Fund Growth ₹343.079
↑ 0.06 ₹513 1.5 3.3 7 7 7.3 5.81% 1M 15D 1M 17D Liquid Fund JM Liquid Fund Growth ₹71.898
↑ 0.01 ₹3,225 1.5 3.2 6.8 6.9 7.2 5.77% 1M 5D 1M 7D Liquid Fund UTI Ultra Short Term Fund Growth ₹4,281.77
↑ 0.31 ₹4,337 1.5 3.6 7.1 6.8 7.2 6.42% 5M 19D 6M 10D Ultrashort Bond Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 29 Aug 25 Research Highlights & Commentary of 5 Funds showcased
Commentary Aditya Birla Sun Life Savings Fund Indiabulls Liquid Fund PGIM India Insta Cash Fund JM Liquid Fund UTI Ultra Short Term Fund Point 1 Highest AUM (₹20,795 Cr). Bottom quartile AUM (₹393 Cr). Bottom quartile AUM (₹513 Cr). Lower mid AUM (₹3,225 Cr). Upper mid AUM (₹4,337 Cr). Point 2 Established history (22+ yrs). Established history (13+ yrs). Established history (17+ yrs). Oldest track record among peers (27 yrs). Established history (22+ yrs). Point 3 Top rated. Rating: 5★ (upper mid). Rating: 5★ (lower mid). Rating: 5★ (bottom quartile). Rating: 4★ (bottom quartile). Point 4 Risk profile: Moderately Low. Risk profile: Low. Risk profile: Low. Risk profile: Low. Risk profile: Moderately Low. Point 5 1Y return: 7.94% (top quartile). 1Y return: 6.98% (lower mid). 1Y return: 6.96% (bottom quartile). 1Y return: 6.84% (bottom quartile). 1Y return: 7.15% (upper mid). Point 6 1M return: 0.45% (bottom quartile). 1M return: 0.47% (top quartile). 1M return: 0.47% (upper mid). 1M return: 0.46% (lower mid). 1M return: 0.43% (bottom quartile). Point 7 Sharpe: 3.76 (top quartile). Sharpe: 3.05 (lower mid). Sharpe: 3.30 (upper mid). Sharpe: 2.80 (bottom quartile). Sharpe: 2.14 (bottom quartile). Point 8 Information ratio: 0.00 (top quartile). Information ratio: -1.37 (bottom quartile). Information ratio: -0.82 (lower mid). Information ratio: -2.27 (bottom quartile). Information ratio: 0.00 (upper mid). Point 9 Yield to maturity (debt): 6.60% (top quartile). Yield to maturity (debt): 5.77% (bottom quartile). Yield to maturity (debt): 5.81% (lower mid). Yield to maturity (debt): 5.77% (bottom quartile). Yield to maturity (debt): 6.42% (upper mid). Point 10 Modified duration: 0.49 yrs (bottom quartile). Modified duration: 0.11 yrs (upper mid). Modified duration: 0.13 yrs (lower mid). Modified duration: 0.10 yrs (top quartile). Modified duration: 0.47 yrs (bottom quartile). Aditya Birla Sun Life Savings Fund
Indiabulls Liquid Fund
PGIM India Insta Cash Fund
JM Liquid Fund
UTI Ultra Short Term Fund
The above can be used as a guidance given the type of investor one is. The proposed asset allocation also gives a projection as to the expected annual return per annum and the expected variation in returns (annual standard deviation).
Let’s, for example, take the individual here is aggressive and hence the equity allocation to be 60%. So proposed investment allocations would be (for an investment of 10 lakhs):
Equity (60%) = 6 lakhs
Debt (30%) = 3 lakhs
Gold (10%) = 1 lakh
One should try and do some research to get a good scheme. Various rating agencies like CRISIL, Value research, Morningstar etc. provide funds ratings. Using these ratings and getting some top performing funds would ensure that we try and select good performing funds into the portfolio.
In the example,
Monitoring your investment is a critical step and one should review the portfolio at least once a quarter and rebalance at least once a year. Also, looking at scheme performance is also important and if there are performance issues one should replace the scheme with a better performing one (also taking into account the tax considerations).
Open Free Investment Account for Lifetime at Fincash.com.
Complete your Registration and KYC Process
Upload Documents (PAN, Aadhaar, etc.). And, You are Ready to Invest!
These are the basic steps to create an investment plan for any sum of money. Hope this gives some direction to create an investment plan for a secured future. Happy investing!