A Complete Guide: An Investment Plan With Your Partner

One of the important milestones in your 20s includes planning a joint investment plan with your significant other. Joint investments are usually more rewarding, have more scope for diversification and the pain of losses gets shared. As a unit, joint investments help in planning a stronger margin for rainy days.

In this blog post, we will outline key steps to build an investment plan after marriage that maximizes potential returns while minimizing risks. 

Here are steps to kick-start developing your joint portfolio:

Step 1. Calculate the net income and define the goals

To calculate the net income for a married couple, you would add up all sources of income for both partners and subtract any deductions or taxes owed. Here’s a general formula:

Net Income = Total Income – (Deductions + Taxes)

Financial goals can be impacted by variables such as income fluctuations, unexpected expenses, changes in the economy, the job market, and tax laws. However, it’s essential to create a flexible financial plan that considers variables.

Potential quantitative goal: 

  • Getting a 30% ROI
  • Investing 20% more in mutual funds biannually
  • Expanding the portfolio with 5 new blue-chip funds worth 1 lakh INR by the end of the year. 
  • Sustaining a monthly average of 50,000 INR stable stock income in the next 1 year
  • Expanding the portfolio by including 5 new blue-chip funds by the end of the year

Potential qualitative goal: 

  • Taking a 3-day trip to Europe
  • Fully paying back a loan in the next 5 years
  • Buying the car of choice 

Marriage investment plans are great because they offer you the opportunity to diversify your marriage portfolio and put money away for retirement or other long-term investments. Marriage insurance plans provide coverage in the event of death or illness. This help protects you financially.

Step 2. Perform Technical and Fundamental Analysis

Secure an investment plan after marriage to be prepared for all upcoming responsibilities and unexpected expenditures. And this is only possible if you do a thorough analysis of your stock before investing in any company or industry. Fundamental Analysis and Technical Analysis will cover all the important pointers that you need to know.  

Fundamental analysis

Fundamental analysis is a method of analyzing financial markets by examining the underlying economic and financial factors that drive an asset’s value. It includes:

  • analyzing a company’s financial statements, such as its revenue, earnings per share (EPS), Price-to-earnings ratio (P/E) assets, Return on equity (ROE), Debt-to-equity ratio, and Operating margin. 
  • Interest Rates
  • Inflation; and 
  • Geopolitical events can impact the market as a whole.

The goal of fundamental analysis is to determine the intrinsic value of an asset, such as a stock, bond, or currency, based on its underlying economic and financial factors. 

This can guide you to make informed decisions about whether to buy, hold, or sell an asset.

Technical analysis

Technical analysis includes studying statistical trends and patterns in price and volume data. Use charts and other tools to identify trends, support, and resistance levels to predict future price movements.

You can start by analyzing:

  • Price charts
  • Moving averages
  • trend lines
  • Candlestick charts

You would be a step ahead if you also use mathematical indicators like Relative Strength Index (RSI), Moving Average Convergence Divergence (MACD), and Bollinger Bands, which are based on mathematical calculations of past price movements and trends. 

Step 3. Open A Demat Account

Opening a Demat account is key to efficiently managing your investments or stock trading. Investing in stocks will offer you:

  • Access to the capital markets
  • Financial security through portfolio diversification
  • Smart financial decision-making and tax savings. 

To open a Demat account with one of India’s strongest players Angel Broking, you will need the following documents:

  • Identity proof: This can be a PAN card, Aadhaar card, passport, driver’s license, or any other government-issued identity card.
  • Address proof: This can be a utility bill, bank statement, Aadhaar card, passport, or any other document that shows your current address.
  • Demat account opening form: This is a document provided by the DP that you will need to fill out and sign.

In addition to these documents, in some cases, you may also need to provide occupation, income, and tax details.

It takes roughly about 4 minutes to open a Demat account with Angel Broking. The fintech giant has 11 million operational Demat accounts, and its contemporary Zerodha has over 10 million active clients.

Free equity & mutual fund investments | Flat ₹20 intraday and F&O trades
Fix brokerage of Rs. 20 per trade
Angel Broking
0 Brokerage on Equity Delivery | Rs 20 per order for Intraday‎ and F&O trades

Key benefits of Investing using an efficient and low-brokerage broker:

  • Choose players offering zero-brokerage to save on transaction costs that can add up over time and reduce your overall ROI. Angel Broking Demat account opening charges are the most as it offers absolutely zero brokerage cost. 
  • Advanced trading tools: Use real-time market data, research reports, charting tools, and other features to identify investment opportunities and best manage your portfolio which would now be including not one but two income sources.
  • Better customer service: Make ample use of credible advice from seasoned players. This can be important for investors like you who may need assistance with their accounts or have questions about trading strategies.

Step 4. Prioritise Your Expenses, Start Working Towards Meeting Top 5 Financial Goals

For instance, paying off a home loan quickly can reduce the amount of interest paid over time. Similarly, investing in an expensive education program that can lead to a lucrative salary is one of the guaranteed return investment plans that can be a smart investment in your future earning potential.

Segregating your Investments into categories like:

  • Large-cap stocks: They are often considered less risky than smaller-cap stocks and may offer more stable returns.
  • Mid-cap stocks: They may offer higher potential for capital appreciation than large-cap stocks, but may also be riskier and more volatile.
  • Small-cap stocks: They may offer higher potential for capital appreciation than large or mid-cap stocks, but may also be riskier and more volatile, with the potential for higher returns or losses.

Within these, further, segregate your investments in common and hybrid stocks. Focus on prioritizing investing in ‘income stocks’ over short-term ‘growth stocks’. Income stocks offer higher dividend yields and stable earnings, making them a good choice for reliable income. Whereas ‘growth stocks’ offer a higher potential for capital appreciation but may be riskier and more volatile.

As a result what should be expected to happen:

  • As a result, any chance of getting a hefty education loan in the future will decrease. You will have a cushioned fund for your future big expenses- both for family planning and personal recreation. 
  • You will be able to save tax, by locking your liquidity. You will have more control over your decisions and your funds. Market risks will have less effect on you, and you will be better prepared for unexpected expenses. 

Investing with your partner is challenging, but rewarding. Open communication is key in securing the right returns for this type of investment plan. Without any fear of missing out (FOMO), build your personalized investment plan keeping the above pointers in mind. 

Do your research. It’s important to remember that even if you don’t achieve every goal in your investment plan initially, perseverance and consistency will be sure-shot rewarding.


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