World Financial Planning Day 2023: Five tips to become a crorepati

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World Financial Day 2023: Here are some tips for investors, that they should follow for wealth creation.

Five tips to become a crorepati:World Financial Planning Day 2023 is on October 4th, is a reminder of the vital role financial planning plays in our lives. This initiative, spearheaded by the International Organization of Securities Commissions (IOSCO), emphasizes the importance of financial awareness and independence. In a world filled with financial uncertainties, it’s crucial for investors to adopt smart strategies for wealth creation and long-term financial security.

Here, we delve into some valuable tips for investors to consider on this World Financial Planning Day, paving the way for a prosperous and secure future.

Five tips to become a crorepati :

1) Diversification of the Portfolio:

Diversification is a cornerstone of successful investing. As Shiv Gupta, Founder, and CEO of Sanctum Wealth rightly puts it, “an investor’s two main tasks are to identify the asset allocation that best fits his or her objectives, profile, investment horizon, and circumstances, and to then ensure that they manage the inevitable ups and downs of markets and avoid making mistakes in times of market stress.”

Diversifying your investment portfolio involves spreading your investments across various asset classes, including cash, equity, debt, alternative investments, and commodities. This strategy helps mitigate the impact of poor performance in any single investment, ensuring stability and growth over time.

2) The 50-30-20 Budget Rule:

Maintaining financial discipline is a key element of successful wealth creation. The 50-30-20 budget rule is a simple and effective guideline to manage your finances. It suggests that individuals allocate 50% of their income for needs (essential expenses), 30% for wants (discretionary spending), and 20% for savings.

By adhering to this rule, you strike a balance between enjoying life today and securing your financial future, reinforcing the importance of both short-term and long-term financial goals.

3) Balancing Debt and Equity Allocations:

Achieving a balanced portfolio is essential for long-term financial success. A common strategy is the 60:40 portfolio, which involves having 60% in equities and 40% in debt instruments. However, Pankaj Mathpal, MD & CEO at Optima Money Managers, advises that investors should assess their risk tolerance and capacity before finalizing their asset allocation.

Equity assets can drive substantial growth over the long run, typically within 7-10 years, while debt assets provide stability, especially during volatile market periods. Striking the right balance ensures you benefit from both worlds.

4) Adjusting Portfolio as You Age:

As investors progress through life, their financial needs and risk tolerance evolve. Financial experts recommend increasing debt exposure by 5% every decade. In essence, when you’re young, your risk appetite is higher, allowing for more aggressive investments. As you age, transitioning a portion of your portfolio to safer debt instruments ensures capital preservation and minimizes risk.

This dynamic approach to asset allocation ensures your investments align with your life stage and financial goals.

5) Incremental Monthly Investments:

For those aspiring to accumulate substantial wealth, adopting a systematic approach to investing is crucial. One effective strategy is to increase your Mutual Funds Systematic Investment Plan (SIP) incrementally. Experts suggest implementing a step-up SIP, where the SIP amount grows annually by a predefined percentage.

A typical annual SIP step-up is around 10%, but for ambitious goals like amassing one crore rupees in 10 years, a more aggressive 15% annual SIP step-up may be necessary. This approach harnesses the power of compounding and steadily builds your investment over time.


On World Financial Planning Day 2023, it’s essential to reflect on these investment tips that can set you on the path to financial independence and prosperity. Diversification, disciplined budgeting, balanced asset allocation, age-appropriate portfolio adjustments, and incremental investments are all strategies that can help you achieve your financial goals.

Remember, financial planning is a journey, and the sooner you embark on it, the more secure and prosperous your future will be. So, take the opportunity presented by World Financial Planning Day to reassess your financial strategies and make informed decisions that will pave the way to a brighter financial future.

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