How to build an Automated Investment Plan that Manages Itself?

Growing your money through investments requires precise planning. And, one of the best strategies that you can implement is automating the investments. Read on to know more about it. 

Managing your investment can be overwhelming, especially if you an amateur investor. Initially, it may feel like a full-time job where you may have to choose the right investment instruments to suit your needs, decide the percentage of fund allocation in different assets, and then you would have to keep track of the assets’ performance. But, once you get a hang of it, you can automate the investments and manage your portfolio better and allow the investment to manage itself. 

Consolidate your accounts

If you receive several monthly statements from different financial institutions, including banks, mutual fund houses, etc. it can be challenging to review the same and keep track of your investment plan. Consequently, you may fail to make the most of a good investment opportunity or you may lose money because of holding the underperforming assets for long. 

To avoid this situation, it is advisable to consolidate as many account as possible so that you receive fewer statements and you can manage reviewing them periodically better. As you review the statements, you can keep track of the asset performances and make an informed investment decision, like increasing the investment in a specific plan that promises higher returns, or moving your funds from low-interest earning instruments to other funds that has the potential of giving better returns. 

Consider putting investments on auto pilot

Once you devise your investment plan, and are certain about the percentage of fund allocation in different assets like equities, fixed income securities, etc. You can arrange for an automatic transfer of funds from your bank to the respective mutual fund house, or brokerage firms. 

For this you simply instruct your bank to enable auto-debit of the amount towards specific investment scheme on a specific date. However, ensure that you maintain sufficient balance in your account to manage the payment. Don’t forget to maintain the minimum balance required in your account. 

Consult a financial advisor

Remember, investing is not easy. And being a successful investor requires planning and implementing right strategy at the right time. As an amateur it is understandable that you are not well-versed with the various investment strategies and sometimes you may lose out an investment opportunity or even incur a loss. 

But, this should not deter you from investing. You can consult a financial advisor; there are plenty of independent advisor who provide valuable investment tips to all in return of a nominal consultation fee. The advisor can help you choose the right investment instruments based on your specific needs, financial goals, and risk-taking ability. 

The advisor may be well-aware of the market movements and they may even give you an insight on the market movement in the near future so that you can make the necessary portfolio adjustments to avoid loss. 

Pay attention

Whether you hire a financial advisor or not, the ultimate responsibility of managing your investment and finances lies with you. And, therefore, it is crucial that go through the monthly financial statements. Review the statements carefully, and immediately raise a red flag if you notice any problems.

Once you have implemented all the investment plan correctly, and have put the payments on auto pilot, you can be sure that the investment will manage itself and your portfolio will continue to grow.