From Gucci to Armani, You Can Have It All With Proper Planning


As a woman, there is something about the big fashion brands that lures you. The feel of the soft fabric against your skin, the clacking of those heeled shoes, the slight whiff of perfume, the fashion-statement bag, or the seductiveness of the red lipstick tantalize your senses.

You may want to fill your wardrobe with some of the best brands such as Prada, Armani, Gucci, Louis Vuitton, or Ralph Lauren. Owning these is not only about making a statement but a sense of fulfillment and achievement too.

Unfortunately, you may not be making that kind of money that allows you to own all these fashion brands. There are credit cards for this limitation but you need to pay back this money or pay a huge interest cost to carry the debt burden.

A much better way to own all these brands is by making aproper financial plan for your goals. You have multiple ways to invest your money and make it work for you. Some of these include mutual funds, stocks, fixed deposits (FDs), government bonds and securities, and the humble bank savings account. Here are three steps of how to make a financial plan that will allow you to own the biggest brands from around the globe.

  1. Set a direction-based goal

You must ask yourself what you want to buy, when you want to purchase it, and its cost. This will allow you to set a clear goal that must be achieved within a specific period. An example could be that you want to buy the Ralph Lauren bag that costs INR 50000 in two years. This clearly allows you to set a direction-based goal that is must be achieved within a certain time.

  1. Understand your current financial situation and risk appetite

You must write down your income, expenses, and your current investments and savings. Writing down your income and expenses will help you understand the exact amount you have available to put aside to buy that Ralph Lauren bag. An important aspect of financial planning is to know your risk appetite. This will allow you to determine how much risk you are willing to take while choosing the best investment instruments. All financial products have a certain inherent risk and knowing your capacity to deal with market volatility is important to make the right investment decisions.

  1. Investing your money

Some of the common financial products include equities, mutual fund investments, bonds and securities, bank savings account, and FDs. To maximize your benefits, it is important to choose the products that deliver the highest returns. However, this decision is based on several factors such as tax-efficiency of the instrument, investment horizon, your goal and its priority, and risk profile.

Having understood how to make a financial plan, below is an evaluation of various investment instruments.

  • Savings account

This is the safest way to invest your funds. However, the returns on such accounts are between 4% – 6%, which is lower than the rate of inflation.

  • Equities and debt

Equities are beneficial for the long-term while investing in debt products is advisable for the short-term. However, stock investing is risky and you may lose your entire capital. Fixed-income products like FDs are safer but do not offer higher returns.

  • Mutual funds

To mitigate the risks of stock investing and to earn better returns than fixed-income securities, consider mutual fund investments. Equity funds deliver superior returns when you have an investment horizon exceeding three years. These are advisable if you want to buy something expensive and have longer investment tenure. Debt funds offer returns that exceed the savings bank account and are beneficial for the short-term. You may invest in mutual funds with a Systematic Investment Plan (SIP). This allows you to invest a small fixed amount at regular intervals in your chosen funds.

Investing is a time-consuming and on-going process. You must review and monitor your investment portfolio to make necessary modifications as and when required. You may not have the time or expertise to conduct such detailed research and analysis.

ARQ, the smart investment engine from Angel Wealth, ARQ, does that for you. As a core highlight of Angel Wealth’s mobile application,it matches investment recommendations to your risk profile and financial goals after evaluating different products. ARQ uses advanced methods such as algorithms and quants to analyze over a billion data points to offer customized recommendations. The entire procedure is automated, free of human error and bias.

Download the Angel Wealth mobile app and get recommendations on your smartphone while on-the-go. Start investing through the technology-driven ARQ investment engine today and be the proud owner of that Ralph Lauren bag.